Essay Example on Law and Ethics in Business Environment

Date:  2021-06-18 23:07:42
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The relationship and concepts between law and ethics are mutually exclusive. Ethics are beliefs about what is right or wrong in the working environment characterized by the moral actions and social expectations of people (Halbert and Ingulli, 2011). Laws are behavioral rules sanctioned by governments to show what people in the working environment can or cannot do (Halbert and Ingulli, 2011). Laws may be unethical or morally wrong as seen in the controversies of child labor, slavery, and abortion. This paper differentiates between laws and ethics, understand how both affect today's business environment, and identify the importance of alternative dispute resolution in business.

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How laws and regulations affect current job or industry

Law plays an essential role because it assists in protecting people and maintaining social control. Law helps in solving disputes, it creates order in a working environment and acts as a set of rules that workers must abide by. Organizations rely on the law to protect their business operations from a lawsuit from suppliers, vendors, and consumers (Kubasek, Brennan, and Browne, 2016). Business law also assists in providing more sales through agreements and contracts with other suppliers, vendors, and companies. Enforced laws and agreements can be used as a backup in case of disagreement. Several laws and regulations that are in effect at my current place of employment include privacy law because I work with an insurance company. As an worker of an insurance company, I can access personal information of our clients such as personal bank information, social security numbers, home address, and vehicle information. Before being employed in the company, employees must take a mandatory agreement and attend a mandatory class that stipulates that access to clients personal information must only be for business purposes. Since we ensure celebrities and famous people too, if laws and agreements were not in place, we could access and use their personal information such as phone numbers and their home address. Thus, the business law was introduced in the company to prevent this purpose. Employees not following the privacy law can face penalties or fines. Thus, laws are important in protecting consumers and determine how companies operate.

How ethical rules affect my current job or industry

Ethical behavior is influenced through the normal standard of behavior we experience or observe in our profession. Setting high moral standard at work involves going an extra mile to offer excellent service, informing, and educating customers (Kubasek, Brennan, and Browne, 2016). When a company set high bar concerning ethical procedures and practices, employees will perform at high standard level. In the insurance company, I am working on, code of ethics is essential in our operations. Market conduct is one of the central pillars of supervisory attention in the insurance company because it involves consumer protection. Consumers must be protected against improper dealings, high sales pressure tactics, unfair treatment, misleading information, fraudulent transactions, and fraud (McDonald, 2005). All these consumer protection concerns or market conduct boils down to ethical behavior. Having ethical behavior as an insurance agent is important in winning the trust and respect of customers. Ethical behavior must be practiced to bring satisfaction in the profession and enhance the industry reputation (McDonald, 2005). A healthy and positive ethical behavior attract customers, improves consumers morale, boost profits and sales, and organizational productivity. By adhering to high ethical conduct, the company reduces risks of adverse implications like levying of fines, loss of license, low retention rates, loss of customers, and lawsuits (Lovett and Woolard, 2016).

Various types of alternative dispute resolution (ADR)

Alternative dispute resolution (ADR) is a means of settling and addressing disputes outside the court setting (Donaldson, 2014). Such traditional ways of resolving disputes are very effective, prompting courts to request parties to pursue such alternatives before litigating. The common types of ADR procedures are mediation and arbitration. Mediation as a form of dispute resolution that involves the help of a third party called mediator (Donaldson, 2014). A mediator helps the parties to reach a mutually accepted agreement. A mediator cannot force the parties to agree or decide the outcome of the dispute but help the parties to settle the conflict themselves. Therefore, the parties conflicting retain significant control during the process of mediation. The mediation process is completely confidential; however, the parties may still litigation. Arbitration is a form of dispute resolution that involves the help of a third party called arbitrator. An arbitrator is not a passive facilitator between the parties (Donaldson, 2014). An arbitrator listens to the grievances of the parties and evidence from all the parties and decides the outcome of the dispute. The process of arbitration can still be binding or non-binding.

Mediation is the most common form of dispute resolution used in my workplace. Mediation as a type of the settlement of disputes that involves the help of a third party called mediator. In case employees do not follow the privacy law, the company may face risks of adverse implications like lawsuits. If consumers are not protected against improper dealings, high sales pressure tactics, unfair treatment, misleading information, fraudulent transactions, and fraud, they may also sue the company. The company may seek a mediator to help the client and the company to reach a mutually accepted agreement.

References

Donaldson, L. (2014). Alternative dispute resolution. ADR, Arbitration, and Mediation, 91.Halbert, T., & Ingulli, E. (2011). Law and ethics in the business environment. Cengage Learning, Boston.

Kubasek, N. K., Brennan, B. A., & Browne, M. N. (2016). The legal environment of business: A critical thinking approach. Pearson.

Lovett, S. L., & Woolard, N. A. (2016). The Toolkit and the Carpenter: Teaching the Critical Distinction between Business Ethics and Personal Morals. The E-Journal of Business Education & Scholarship of Teaching, 10(2), 35.

McDonald, G. M. (2005). A case example: Integrating ethics into the academic business curriculum. Journal of Business Ethics, 54(4), 371-384.

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