Current conduct in business has been marred by great levels of mistrust due to growing levels of unethical conduct in business, which is motivated by making high profits. A good business that withstands the test of time bases its success on a good reputation and trust from its clients who view the service or products of the business as unrivaled. Big businesses can attribute their success to high levels of ethics and good management that puts into consideration the needs of the consumers by following the law to make products or services that are regarded highly by consumers or clients. Business ethics can be described as the ethical principles that a business abides by such that it meets the moral threshold in conduct of its operations. Business ethics evolve to conform to the changes in the field of business. Some conduct might have been unacceptable in the past but is acceptable in the present business climate.
A code of conduct can be described as a guideline of how I should conduct business as the owner or manager. A code of ethics and conduct is vital for running a business because the customers are able to get the best services and products that are made with consideration of the stated ethics. A Business takes a long time, which runs in years to create a solid reputation but can ruin the same reputation in moments by acts of negligence. Success of a business is solely made from its reputation and relationship with its customers. Code of conduct also dictates the quality of service and goods that a business offers to its clients. A code of conduct also enables me as the owner of the business to meet obligations to the suppliers, society, consumers, and the government by making conscious decisions.
As an owner of a business the incorporation of ethics and business law in running an entity can accrue many benefits to me as well as the business as it permeates all levels of running the business and influences the choices I make in the best interest of the business. A business incorporates ethics in all its operations from financing, accounting, marketing, financial reporting, strategic planning and management of the business. In addition, ethics in the named aspects conform to the legal threshold in its area of business. Business law incorporates various types of law that an owner of a business should be conversant with such that the business is not exposed to malpractices, lawsuits and eventual losses because of customer dissatisfaction with the services or products. Such businesses are driven by the greed for more profits. The law of contract is a major element that is vital for any business practitioner. The law of contracts entails a series of steps and the remedies for violation of contracts and the warranties of such contracts that have been entered into by a business. Moreover, the law of contracts entails the law relating to the sale of goods. One is able to follow the law and avoid loopholes that might be detrimental to the existence of the business.
Knowledge on laws relating to the sale of goods is vital in making decisions pertaining to running a business because it entails the essentials that should be followed when making sales or purchases. A business practitioner I am able to make a decision to avoid buying goods that do not conform to the quality that is promised by the seller. If such a violation is committed against a buyer and sufficient consideration had been passed from the seller to the buyer, then the buyer is able to seek legal remedies with the support of the signed or implied contract as proof that the purchase or sale of the said goods took place. In addition as a business practitioner one is able to know the essentials that makes a contract valid such as the passage of consideration, presence of both parties, mutual agreement. In addition, a written contract should indicate the name and signatures of parties involved in such a contract and the type of consideration passed from the buyer to seller. Business law enlightens an individual involved in the running of a business as it opens up to the business practitioner the way things should be done from a legal perspective.
The knowledge in the sale of goods or services is vital is vital for me as owner of any business to make decisions to avoid contravening laws and avoid fraudulent activities against the business. Caveat emptor is predominant doctrine that guides a business practitioner when making sales agreements. Without the knowledge of caveat emptor, an owner of a business is able to avoid making such a purchase thus avoiding legal repercussions that might be detrimental to the existence of the business. The law of negotiable instruments is vital knowledge in running a business that is vital in running the business. Negotiable instruments are documents that guarantee that money lent to another will be refunded back in the amounts agreed upon and stated in the document. The exchange of goods and services in a business can be done on a credit basis, thus with the relevant knowledge, an owner of a business is bale to seek legal remedy to have money refunded if an individual or another business fails to honor agreements held in the negotiable instruments. Without such knowledge, a business owner could be easily defrauded off money or other resources he had worked tirelessly to achieve.
As a businessperson in a partnership, it is vital to have the relevant knowledge to know how to navigate issues in a partnership. It influences the decisions that a partner may take. Some businesses are formed as partnerships between two or more people. When such partnerships are formed, some of the partners are likely to commit frauds or take advantage of the other partners due to their minimal involvement in the business or due to their absence or more so due to lack of knowledge on how to run a partnership. Business law provides all the necessary information that is vital for the operation of a business as well as maintaining the required code of ethics that will benefits all partners without exception. The law of partnership provided the distribution of profits and the laws that will govern such a partnership. A partnership is run by a partnership deed that shows details of themselves, their capitals, agreed profits and loss sharing ratios, how to share property when the partnership is dissolved. One is able to avoid losses that could be accrued from deception by one of the partners.
Law also affects the decisions I make in offsetting my shares to form a public company. As a business owner, I should be able to understand the process of turning a private ownership into a company. A business might eventually become a success and become a company. The process entails of releasing personal stakes from the business by selling them to the interested investors. A majority shareholder after releasing the shares one must understand his or her role in the new company as either a part of the board of governors or as company secretary. The former owner after the formation of the company should understand the repercussions that follow such as new management and lack of involvement in running the business to seek self-interests. Business law ensures that business ethics are followed precisely and provides the remedies for not following such laws.
As a business owner I should be able to ensure that the business is able to choose an employee or the best employees in a fair manner. Human resource management is also another aspect that ethics should be applied fro smooth and efficient running of a business. Human resource management is a vital aspect as it deals with how a business handles its employees. This would be beneficial to the growth of the business as the best individuals are able to employ the best skills and knowledge that they have in the business. Moreover, a business that incorporates ethics in managing its employees is able to offer fair remuneration to its employees. Fair remuneration for an employee acts as a morale booster hence the employee is able to work harder for the benefit of the business.
As business owner, I am mandated to fully disclose the condition my wares to the public and any defects in the products by law of sale of goods. Marketing in a business by incorporating ethics has many benefits. For example, when marketing a product without using smearing tactics against competitors, there is the benefit of showing the potential customer that the business engages in fair marketing strategies. Transparency in advertising by disclosing information about the product without concealing information that might pose a risk to the health of the consumer would be vital for avoiding legal repercussions. Lack of full disclosure about the products would be a case of fraud against the consumer because the product is inferior in quality and the silence is given as a guarantee that the product is of the highest quality. Management is a vital aspect in running a business thus when incorporating ethics in managing a business as a business owner I accrue many benefits such as eventual success of the business. As a manager, i have the choice of choosing unethical behavior to arrive at the desired results in a shorter period or using ethical means, which will eventually lead to success of the business.
As a business owner, I am able to plan, make decisions pertaining to the strategies and to implement strategies that are good for the business, the clients, employees and societal norms such that the goals of the business are in line with societal needs of the business. Planning in the business to achieve its goals should incorporate business ethics such that the business follows the required code of conduct in its market Planning should not entail plans that do not follow the law or ethics in the means of achieving the set goals. Customer perception and judgment about a company is able to drive the growth of a company thus when a company uses ethics and follows laws to the latter in conduct of its business customers are able to judge the company as a company that adheres to business laws. This drives up the company’s ratings and thus more profits are accrued from such conduct. Hence, the owner is able to consider his business as a success.
In conclusion the incorporation of business law and ethics in running any business entity is able to ensure that the business is able to gain consumer trust that the business conform to regulations in the production of goods and provision of services as it penetrates all levels of a business and influences the choices made by an owner or manager. The gains from using ethics and following the law ensure that the products produced are of high quality goods that are preferred by consumers thus more profits for the business and its owner. As an owner of a business I am able to avoid legal loopholes that might have several legal repercussions in one’s life as well as the health of the business. A business without ethics and law is bound to fall into legal and moral pitfalls found in any market.