The State and Business - Essay Example

The State and business University name Student name Student id Course Date Executive summary This report paper is trying to explore the ethical practices of organizations in the process of managing the organization and the intervention of the government. The various ways that organizations use in the course of ensuring that the organizations are ethical properly analyzed in the paper. The way government and business interrelate in the process of ensuring that there are ethics in the operations of the businesses are properly outlined in the paper. The ways that the government regulates the organizational practices to ensure that the practices of the organizations are ethics are explored to show the role played by the government in the process of ensuring that the practices of the organizations are ethical. For instance, the government has been regulating the activities of the organizations aiming at ensuring that the organizations do not violate the business ethics in their operations. The government has been considering the business practices that can ensure that the organizations are operating within the established policies governing the ethical contact of the organizations. The government has been managing the operations of the organization through establishing regulations that need to be followed by the organizations operating in the industry. Table of Contents Executive summary 2 Introduction 4 Government intervention in business 5 Ensuring ethics in business 5 Protection of the environment 7 Corporate governance 8 The role of government in managing business environments 9 Controlling markets 9 Controlling production 10 Controlling organizational behavior 11 Conclusion 12 References 14 Introduction There are various ways that can make an organization unethical in their operations. Such practices that can make organizations unethical can include tax evasion, use of child labor in production, environmental pollution, failure to consider the welfare of the various stakeholders among other unethical practices. As a result, the government has been intervening to come up with the policies that can ensure that the practices of the organizations are ethical (Novak, 2001). For instance, through government interventions, there are rules that have been set governing the employment issues in organizations. This can involve the employment age, the minimum salary and the rights and responsibilities of the staff. Also, the organizations are forced to ensure that they operate within the business laws. The government has been intervening to ensure that the practices of the organizations can assure ethical practices. Organizations many try to fraud different stakeholder in the process of managing their operations hence the government has been very keen to ensure the organizations do not misuse the various stakeholders to the business. For instance, the government has been regulating the prices of the products offered in the market to ensure that the product that is availed to the consumers in the market are safe for human consumption. In the process of ensuring that the products are safe for human consumption, the government has been setting the quality standards that has to be met (Marshall, 2011). A body has been established by the government that deals with the safety of the products and regulating the manufacturing of the products that are safe for human consumption. Besides, the consumers can be exploited by the business by charging high prices. As a result, the government has been intervening in the pricing to ensure that the products are fairly priced hence making the essential commodities affordable (Storck, 2000). Therefore, the government intervention in the operations of businesses has been geared towards ensuring that the businesses do ensure ethics in business practices. Government intervention in business There are various ways that government has been involved in the management of companies. There has been established a relationship between the government, and the businesses have been seeking to control the operations of the businesses. The government has been controlling various business ethics by establishing guidelines and regulations that need to be followed to ensure that the organizational practices do consider the different stakeholders. Ensuring ethics in business Business ethics refer to the moral principles that guide the way a business behaves. The government ensures that businesses behave in an ethical manner by enforcing methods such as legislation, supervision, and incentives. Legislation involves setting up laws which ensure that businesses do not engage in malpractices which lead to exploitation of consumers or affect the environment. Government ensures supervision by monitoring large business organizations or monopolies from engaging in anti-competitive behavior which can affect the consumers or the environment (Boyle, 2009). Incentivizing by the government can involve awarding companies which excel in good business and punishing those which pollute the environment. Each business plays an integral part in ensuring proper business ethics. Government intervenes in the management of organizations by ensuring that the practices of the business are carried out in an ethical manner. For instance, the government can decide to monitor the employment practices of organizations to ensure that the employees are treated in the right way there have been various ways that government has been intervening in businesses in the process of managing the way the employees are managed in the organizations (Shiach, 2004). For instance, the government has set various regulations that do regulate the welfare of the employees in the organization. This can entail establishing the standards ensure that need to be followed governing the relationship between the employees and the organization. The measures do outline the rights and responsibilities of the employees and organizations during the contract of employment. The government efforts have been aiming at ensuring that the employees are not misused by the management of the organizations where it has set the required compensation to the employees. Besides, the government has been ensuring that the administration of the organizations is responsible for their operations in various ways. For instance, the government has been ensuring that the financial information provided by the organizations is a fair and true representation of the company performance (Spencer, 1998). Ensuring true representation of the financial information of organizations has been assisting investors to make decisions concerning investments using the available financial information. The government can also ensure that the businesses pay the required taxes. Good business ethics ensure businesses get the support of consumer movements which improves sales and profits. Through good business ethics, consumers can enjoy high-quality products. Good business ethics ensure business does not engage in unlawful practices provides quality products and services to the customers, do not pollute the environment, and takes care of the employees interests and other stakeholders such as shareholders and suppliers through honesty and transparency (Richard, 1984). Good business ethics benefits the society since businesses are involved in development programs which improve the social stability of the community involved. An ethical business provides high-quality products and services which are safe to use and can meet the consumer needs and satisfy them. It ensures that it does not produce goods or provide services which affect the political, social, and cultural wellbeing of a community. It should also be honest and accountable when dealing with employees, suppliers and other stakeholders in the business environment. An ethical business ensures consumers are protected from false advertisements and ensures that customers are educated on proper handling of products. It ensures that products reaching the customers are cost effective and of high quality. An ethical business ensures that employees’ rights are respected and provides a conducive working environment for the employees (Marshall, 2011). It also ensures the employees are motivated by awarding them with promotions and adequate social amenities. An ethical business also uses efficient ways of production which minimize pollution thus conserving the environment. Protection of the environment The government has been concerned by the effects of the business practices on the environment. The government expects the practices of the companies to ensure sustainability in the use of the natural resources. For instance, the business activities are expected to ensure the protection of the environment in various ways. The protection of the environment can be regarding the way the companies handle the environment in their operations (Zwick, 2004). The government expects the businesses to have policies governing the environmental conservations where they ensure that the production process does not release the greenhouse gasses such as carbon dioxide in the atmosphere. The production process of the organizations is expected to ensure efficiency in the use of energy where the necessary systems that can guarantee recycling of some resources such as water are considered essential in organizations (Waibl, 1997). Besides, the government needs to work towards ensuring that the waste products from the businesses are well-disposed. Some regulations are established to control the dumping of waste that can harm the ecosystem. The efforts of the government have ensured that the business practices do not pollute the environment hence ensuring proper use of the natural resources. Corporate governance Good corporate governance is essential in ensuring consumer protection and in national development. It also ensures that businesses are run in efficient ways which are cost effective. Good corporate governance leads to the proper use of resources in production which in the long-term reduces costs. It also ensures that the economic system is fair and just and less wastage of resources (Henry, 2009). Proper utilization of resources enables the consumers to acquire products at reasonable prices. Good corporate governance improves a nation’s competitiveness in the global market. The government plays an integral part in promoting ethical businesses. The government should set various methods to promote these business ethics. For instance, the government should create bodies which ensure product safety. This can also be attained by adopting measures and laws which ensure product safety. The government should also adopt policies which ensure that no defective or substandard products are recalled by manufacturers before they reach the final consumer (Shiach, 2004). This ensures that consumers are protected, and goods supplied to them meet the required standards. The government should make sure there The primary strategies may be achieved through raising awareness in creating shared understanding of corporate responsibility amongst businesses as well as promoting broader public understanding of what the company can be involved in implementing such strategies (Ernst, 1982). In achieving corporate responsibility, the necessary regulations need to be put in place to ensure that the organizations are socially responsible. Governments should put in place proper mechanisms and instruments to monitor as well as enforcing corporate responsibility and accountability. The corporate responsibility program reached an optimum point over the last five years. In two various crisis events such as the Copenhagen Summit in 2009 had mixed results which had a game-changing result for governments and businesses as well, and this called for redefining their duties (Marshall, 2011). The role of government in managing business environments Controlling markets The government has been controlling the market in various ways. First, the government has been controlling the operations of the business through licensing of the business. The government has been taking the responsibility of ensuring that it is aware of the business operating in the market. This has been assisting in ensuring that the businesses operating in the market do meet the requirements needed. Through licensing the government can be in a position to know the kind of businesses done hence ensuring that the business is legal. The primary goal of the government to control the business has been ensuring that the welfare of the customers guaranteed by controlling the activities of the businesses (Vernon, 2010). For instance, the government has been ensuring that the products proceed are safe for human consumption. There has been standards that are set that the firms have to meet the process of offering their products to the market. The standards have been set to ensure that the products can not affect the health of the consumers negatively. The government has been controlling the prices and the kind of goods sold in the market through the use of taxation. For instance, the government can ensure the basic commodities are affordable by reducing the tax to make the prices low. This has been geared towards improving the welfare of the consumers making the basic products affordable in the market (Henry, 2009). Besides, the government has been controlling the prices of the basic commodities by setting prices that the business in the market should sell the products. This has been helping in ensuring that the products are made affordable in the market. Some policies have been set governing the pricing of products in the market to make sure that the consumers are not exploited. The control of the harmful products has also been the role of the government where regulation governing the sale of the harmful products such as cigarettes has been put in place. The consumption of some products such as cigarettes and alcohol has been controlled by raising the prices (Zwick, 2004). The prices have been raised to discourage the consumers from consuming the harmful products due to the high prices. The prices of the toxic products have been raised by raising the tax that has been transferred to the consumers. This has made the number of the consumers consuming the products decline as most of the consumers have been finding it expensive to buy the products (Bealey, 1999). The taxation system used has been taxing the products that their consumption has been discouraged to make the demand for the product decline. Controlling production The production of the products in the market has been controlled to ensure that there is no shortage of the basic commodities. The control of production has been aiming at ensuring the stability of the market forces that are demand and supply. The moment the production is high the products supplied in the market tend to be high then the prices are made to be low due to the over production. Likewise, when the production is low, the supply of the goods in the market tends to be low hence making the prices high (Lewellen, 2003). The control of the production has been aiming at ensuring that the products supplied in the market can be in a position to meet the market needs without surplus or shortage in production, therefore, controlling the supply and demand in the market is crucial in ensuring that the equilibrium is achieved. The balance can be achieved the moment the products produced can be in a position to meet the market demand. Controlling organizational behavior The government has been involved in the process of controlling the organizational behavior of the companies. The control of the organizational behavior has been aiming at ensuring that the organization codes of contact in the course of doing business do not violate the rights of the various stakeholders. For instance, the government has been ensuring that the organizations do ensure that the rights of the employees are not violated. The government has come up with the regulations has do government the management of the employees in an organization. According to the government, the employees in an organization need to be treated well with the necessary measures that can ensure welfare of the workers put in place (Waibl, 1997). The welfare of the employees can be guaranteed by making sure that the employees are well paid, and the working conditions are good. For instance, the government has been working towards ensuring that the working situation of the employees in various organizations is safe in the process of ensuring the welfare of the workers. The government has been controlling the behavior of the businesses to make sure that the companies do discharge their obligations to the government. For instance, the business has the obligation of ensuring that submit their tax returns that are accurate. The government has to be concerned about the financial reported behavior of the businesses to make sure that the books accounts are properly audited to ensure fair and true financial representation (Vernon, 2010). The fair representation of the books of account has been assisting the government in taxing the businesses hence making sure the company cannot evade tax payments. Besides, the government has been protecting the shareholders where it has been ensuring that the right auditing standards are in place. The standards in auditing have been assuring that the companies cannot fraud the shareholders by changing the financial statement that can assess the way he manages been committed to maximize the wealth of the shareholders (Vernon, 2010). The investors have also been able to make the right investment decisions due to the accurate representation of the financial information of the organizations. Conclusion Government has established relations with businesses in various ways where the government has been aiming at controlling the activities of businesses. The government has not only be focused on the welfare of the stakeholders, but it has been looking for ways that can ensure that the business environment is right to guarantee the businesses success. The external business environment has been of great concerns to the government to make sure that there is a healthy business climate that can ensure the success of the companies (Spencer, 1998). For instance, the government has been protecting the local industries by controlling the number of foreign companies investing the country. This has been efforts of the government towards ensuring that the business is in a better position to succeed. Besides, the government has been playing a crucial role in regulating the competition in the market hence ensuring that the operations of the business are effective and accurate. 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