Businesses need to know the legal bindings related with workplace safety. It is a very important part of business ethics and not knowing the rules may prove to be costlier than usually perceived.
Harming customers or members of the public may make you liable for damages. The organizations must act in a legal manner to solve the legal issues. If they are unaware of the legal outcomes, they may cease to become a leading organization in their industries.
Reputation and the image of a business is a very important factor for the organization. It may make or break a company. It has been proved that the more the reputation, the more are the profits. Therefore, image problems associated with legal process are very important for organizations.
Usually, governments establish rules and procedures for business processes. Businesses that do not follow the guidelines often face large fines or penalties. Breaking law can lead to costly legal battles which may be fairly larger than the cost of maintaining legal standards. Additionally, executives at companies who break the law and engage in unethical behavior could find themselves facing criminal charges.
Even before the business influences the business plan to potential investors, there could be ethical issues already piling up. All the co-founders of an organization must share the same business values, principles, and ethics. If they are of conflicting principles, they will face difficulty in securing funding or even finding clients.
Hiring and selection procedures also affect the company’s ethics which can be a challenge. The organizations must be ethical in employment aspects so that they can employ the right candidate without any discrimination or partiality.
A company, its management and staff must conduct business in a manner that according to certain business standards and principles. Compliance has to do with the oversight regarding certain rules and regulations, written laws or common laws. It is a very sensitive issue for businesses as not conforming to laws may make the organization obsolete.