Civil Legal Actions Against Unethical Business Practices - Essay Example

? Federal Criminal and Civil Legal Actions Brought Against Perpetrators of Unethical Business Practices After 2008 The legal system has been depended upon to ensure that fairness and equality in every sector of society is upheld, and this also includes the sector of business. Over the years, businesses have developed from small independent sole proprietorship ownerships that were run by families and individuals to large corporations that have an international presence around the globe and exist as a legal entity distinct from their owners and their personal belongings. This development has occurred due to the progress made by the various industries that have been the base of the discoveries and new developments that have revolutionized the world over the years. These corporations however involved they have been in the progression of the new world have also required monitoring and regulation to ensure that their interests were not put before the those of the public they were supposed to serve and thus the emergence of legal monitoring came into being (Duska, 2007). This ensured that organizations that did not follow ethical codes would be punished for their misdeeds and formed a source of protection for the public from greedy corporations that were more interested in making money than the wellbeing of the public. Ethics can be a complicated topic as some individuals suggest that businesses are not necessarily bound by any ethics as long as their actions do not go against the laws that have been set to govern them (Duska, 2007). This has created a sort of lee way allowing some dishonest organizations to operate along the line of the law while not exactly putting any effort into taking the publics wellbeing into consideration. The existence of companies as a legal entity has also meant that individuals responsible for the businesses actions that go against ethical standards can be let off the hook with the help of a good attorney. This has been the talking point of many critics as they term this type of practice part of the unethical behavior that needs to be changed for the good of the business world. The issue that not all ethical practices have been included in the legal framework set up to regulate corporations but are expected as a result of good will have made the situation even more complicated in terms of having the perpetrators of these violations brought to justice. There are a number of actions that have been taken up over the years in a bid to bring a stronger sense of control in the business world via various federal criminal and civil legal actions taken upon perpetrators as well as a number of regulatory bodies and individuals appointed by companies (Duska, 2007). A good example of such individuals are Ethics officers that have been present since the mid 80s who ensure that companies keep within the ethical boundaries that have been set for businesses. This was the result of the formation of the Defense Industry Initiative which was developed to promote ethical business practices among companies (Markham, 2006). Another regulatory body called the Ethics & Compliance Officer Association was formed in the year 1991 in a bid to determine the best ethical practices that can be implemented by businesses and its membership grew over the years to its current size of 1200 members, which is quite impressive for an independent organization (Markham, 2006). The government has also been involved in the promotion of these ethical practices through the passing of related legislations such as the Federal Sentencing Guidelines for Organizations which was passed in 1991 which established certain standards that businesses were required to follow in order to receive reduced sentences in the event that they were found guilty of committing a federal offence. This legislature played a large role in convincing many organizations to practice business ethics as they were now provided with a visible incentive for doing so other than a clean conscience. The enactment of the Sarbanes–Oxley Act also played a significant role in the appointment of ethics officers as companies it was better to play it safe than sorry and thus needed an individual who was able to determine the ethical implications that various activities by the company held. This was especially popular between 2001 and 2004 when various scandals involving large organizations such as Enron and Tyco had been exposed and had led to dire repercussions in terms of financial compensation as well public image (Duska, 2007) This period indicated a time when companies realized that they were no longer able to get away with their unethical practices and a large effort was finally put in by many organizations to curb any activities that may shed them in such a light. This has led to the establishment of internal ethical policies as well to ensure that none of their employees act in an unethical manner within and without the company. These internal policies can be generalized in a simple corporate statement or could also include specific behavior that the employees are required to follow as members of the work force of the organization (Markham, 2008). These policies may involve the treatment of the companies’ clientele as well as fellow colleagues in the work environment and individuals who do not follow these policies face stiff repercussion that may even lead to the termination of their employment in serious cases. The seriousness with which these ethical implications are taken by organizations can be seen in the various activities that some of these companies undertake such as the holding of seminars for their employees involving these ethical practices on a recurring basis where the attendees are educated on the various ethical codes and their legal implications that they hold to ensure that their employees are aware of the obligations that are expected of them and the risks involved in not following these obligations. These seminars mostly involve the various ethical problems that an individual may face in the course of their work and the appropriate way of dealing with the issue should they come across them (Pinnington, Macklin & Campbell, 2007). Some companies even go as far as ensuring that their employees sign legal agreements stating that they will adhere to the ethical codes of conduct that have been put in place by the organization (Duska, 2007). The federal criminal and civil actions that have been undertaken perpetrators of ethical codes especially since the year 2008 have also discouraged individuals from taking the risk of committing the deed as the potential repercussions are not worth the rewards that one may receive from such actions (Jones & Parker et al, 2005). This includes factors such as increased jail time and financial restitutions for any perpetrator to the aggrieved party. Ethical violations that lead to serious results such as the deterioration of a person(s) health or financial wellbeing can be treated as a federal offence and an individual risk the chance of not only getting a prison sentence, but is required to provide financial compensation to the victims as well which may quite likely leave the perpetrator bankrupt meaning they will have to rebuild their life from scratch after serving their sentence. Individuals can no longer hide behind the corporations as a legal entity that is treated as an individual on its own as the people behind the organization’s actions are also liable to legal action (Jones & Parker et al, 2005).. This includes individuals who were in charge of the department responsible for the ethical violation as well as those who were directly involved in the act as well. The record of such perpetrators is also soiled as a result of the legal action taken against them making it difficult for them to get jobs anywhere else. Though these repercussions have been improved and designed to be stricter in a bid to dissuade them from such acts, there is still more actions that can be taken to ensure that ethical codes are treated with the seriousness that they deserve by organizations (Markham, 2008). This can include even stricter punishments especially for actions that affect the public and put the lives of individuals at risk and higher compensation fees for the less serious acts that will ensure wealthy individuals are not able to get away with acts such as sexual harassment virtually unscathed. However, in comparison to the laws present in the former years it can be said that good progress has been made considering the length of time it takes for legislatures to be enacted due to legal procedure (Jones & Parker et al, 2005). The government has shown that it is concerned about the common man as well and not only interested in keeping the organizations making billions of dollars in business despite the consequences of their actions. Civil courts have ensured that even blue collar individual are able to attain the justice that is deserved of them ands they are given a chance to fight corporations that on another platform would hold the obvious advantage due to their financial superiority. The support of the various independent organizations that have been formed to fight these ethical violations have also been a big help in the fight for justice and equality for all as they have established policies that companies are required to follow and have ensured that ethical standards are upheld. References Duska, R. (2007). Contemporary Reflections on Business Ethics. Boston: Springer Jones, C. & Parker, M.; et al. (2005). For Business Ethics: A Critical Text. London: Routledge Markham, J. W. (2008). A financial history of Modern US Corporate Scandals. New York: M.E. Sharpe Pinnington, A. H.; Macklin, R.; Campbell, T. (2007). Human Resource Management: Ethics and Employment. Oxford: Oxford University Press. Read More