Importance of Business Law and Ethics in Modern Corporations

Business Law and
Ethics

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK ..............................................................................................................................................2
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6
INTRODUCTION
The success and failure of a business depends on the organizational behaviour, value,
culture, ethic, etc. These all make the combination which helps a business to move forward.
Business law guides how the business is carried out with respect to following the legal rights and
obligations. Every owner before starting a business states its objectives, vision, mission and
structure(Almahrog, Aribi and Arun, 2018). It is essential that a balance is maintained between
profit making and abiding by the ethical values. In the general sense all the companies and
businesses require a business plan and strategy that can help to cope with the competitive market
and also with ethics to flourish in the modern world. This essay will cover in detail the ethics of a
business, what changes are taking place in the corporate world and will focus on what the
documentaries of Joel Barkan's present in relation to the modern corporate world.
TASK
Ethics are basically defined as a system with moral principles. Business ethics basically
relates to the ethical principles that take place in the business environment. It affects the decision
making of the organization and leads it towards functioning in a manner that benefits the society
as well and not just dependent non profit making. It involves working with fair actions and
ethical standards. These are established by corporations and organizations for the rules and

regulations. It thus involves the duty of doing moral good and maintaining a balance between the
business activities and societal good. Ethics thus help in defining what is right and what is
wrong. Corporate ethics sets standards that are set to define the conduct at the workplace.
Business ethics also emphasizes and outlines the law that outlines what is are the acceptable
behaviours in the organization (Halbert and Ingulli, 2020) . These are established in order to
promote integrity in the employees and members and to have the trust from the stakeholders like
investors and consumers that the corporation is not just a profit making organization but rather it
also looks after the ethical principles which are must in today's time.
Ethical management is very essential for the business because it benefits the corporation
with respect to increasing customer and employee retention, reputation, status and image of the
organization improves, the potential investors get attracted towards the company to make
investments, loyalty of employee increases,etc.
Corporations are special and different kind of professional entity. Corporations like an
individual person have moral responsibilities. Ethical practices in an organization are driven by
truth, honesty, trust and the thinking which is far above the profit making objective. The effect of
ethics is inter-related and inter-dependent(Haugh, 2019) . The stakeholders are affected by the
ethical practices of a corporate who are customers, employees, government, investors and
society. With legal scandals and employees dishonest behaviour making the news, it is no
wonder that the ethical behaviour in today's modern corporate world is taking a back foot in their
priority based to-do list.
Since the origin and beginning of commerce and trade, the business and its ethical basis
has been a point of question. To create a balance between pursuing the opportunities present in
the market and maintaining integrity with respect to ethics has posed as a challenge for the
business corporations. The modern corporation today is neglecting their ethical duties in order
to gain more and more profits. They are not looking after the responsibilities that they have
towards the society based on some ethical principles. The ethical behaviour that are expected
from the modern corporation but are neglected by them are the issues of discrimination. Due to
the diverse workforce the tolerance level in the corporate world is gradually decreasing giving
rise to ethical issues that are not looked after(Scherer and Voegtlin, 2020). Another ethical issue
is of Nepotism and Favouritism which is commonly seen in the modern world of corporate
practices. It discourages the employees in having a positive behaviour towards the corporation.