Free

The Legal and Ethical Environment of Business - Essay Example

Comments (0) Cite this document
Summary
Currently, Iraq is regarded as the world's second largest proven oil reserves, next to Saudi Arabia. In this nation, oil is considered as the most important asset as the whole economy is dependent on its production and exportation. However, it can be recalled that the Iraq oil industry was heavily regulated by the state…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
The Legal and Ethical Environment of Business
Read TextPreview

Extract of sample "The Legal and Ethical Environment of Business"

The Legal and Ethical Environment of Business Currently, Iraq is regarded as the world's second largest proven oil reserves, next to Saudi Arabia. In this nation, oil is considered as the most important asset as the whole economy is dependent on its production and exportation. However, it can be recalled that the Iraq oil industry was heavily regulated by the state. Also, maximum production is not attained due to inefficiencies in the economy. Also, the fate of the oil industry is often directly related with the political turmoil and wars which raged in Iraq during the past 25 years (Middle East Economic Survey 2004).
As the oil industry is directly related to the political setting, it is expected that the takeover of the United States and the Coalition forces since 2003 as well as the new constitution in place will create new opportunities for foreign investors. The Iraqi Constitution of 2005 clearly stipulates the provision of business prospects for international oil companies (IOCs). The global policy forum recognizes this: "In the new setting, with Washington running the show, "friendly" companies expect to gain most of the lucrative oil deals that will be worth hundreds of billions of dollars in profits in the coming decades. The new Iraqi constitution of 2005, greatly influenced by US advisors, contains language that guarantees a major role for foreign companies" (Oil in Iraq 2006).
DWI can take advantage of this by pursuing oil exploration in Iraq. This new venture is expected to raise its oil production as well as it revenue and profit. DWI will be able to produce high-grade crude that is extraordinarily cheap to manufacture. In Iraq, discovery and development cost is only $0.5/B and $0.5-$1.0/B, respectively.
As the constitution of the new Iraq government is still under establishment, there are no concrete laws which govern the oil industry. In the Chapter Four of the draft of the Iraqi Constitution, it is stipulated that the government will "administer oil and gas extracted from current field" and "draw up necessary strategic policies to develop oil and gas wealth to bring the greatest benefit to the Iraqi people" (The Associated Press 2005). Thus, even if the IOCs would be allowed to operate in the Iraq, they will be directly dealing with the state concerning their operations. In the case of DWI, it is in an advantageous position being headquartered in Delaware and a US company. It is expected that it will gain a more favorable response because of the US' influence on the government of Iraq.
In operating an oil exploration business in Iraq, DWI needs to consider dealing with various institutions. First, the company needs to closely coordinate with the Ministry of Oil. It should be noted that this institution works on issuing the necessary permits and contracts. Next, DWI also needs to work hand in hand with the local government in the region where it wants to operate in.
Currently, Iraq seems to be a lucrative market for DWI. However, the company should also look at the long-term prospects of the Iraqi oil industry. As oil is often dependent on the political situations in Iraq, DWI should really look into the long-term plans of the government.


References
"Middle East Economic Survey." (2004). Retrieved 21 August 2006, from http://www.mees.com/postedarticles/oped/a47n48d01.htm
"Oil in Iraq." (2006). Retrieved 21 August 2006, from http://www.globalpolicy.org/security/oil/irqindx.htm
The Associated Press (2005). "Text of the Draft Iraqi Constitution." Retrieved 21 August 2006, from http://www.usatoday.com/news/world/iraq/2005-08-24-iraqi- constitution-draft_x.htm Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Legal and Ethical Environment of Business Essay - 1”, n.d.)
The Legal and Ethical Environment of Business Essay - 1. Retrieved from https://studentshare.org/miscellaneous/1527947-the-legal-and-ethical-environment-of-business
(The Legal and Ethical Environment of Business Essay - 1)
The Legal and Ethical Environment of Business Essay - 1. https://studentshare.org/miscellaneous/1527947-the-legal-and-ethical-environment-of-business.
“The Legal and Ethical Environment of Business Essay - 1”, n.d. https://studentshare.org/miscellaneous/1527947-the-legal-and-ethical-environment-of-business.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Legal and Ethical Environment of Business

BBA (HONS) Legal % Ethical Environment of Business

...?Corporate social responsibility (also called corporate conscience) is a procedure of corporate self-regulation united with a business model. CSR policy’s purpose is to act as an incorporated, self-regulating device whereby business observes as well as guarantees its active agreement with the essence of the law, ethical values, and international standards. The objective of CSR is to embrace accountability for the company's actions and inspire a positive influence through its undertakings on the environment, employees, consumers, communities, stakeholders as well as all other affiliates of the public domain (Gary, Owen & Maunders, 1987). Additionally, CSR-focused...
9 Pages(2250 words)Essay

The Legal and Ethical Environment of Business

...?The Legal and Ethical Environment of Business Discuss public/private law and the legal environment of businessBusinesses do not operate in isolation. Interaction with legal, ethical and moral issues is inevitable for businesses. There are certain laws, which affect every business, big and small. Some of the most prominent laws include: Anti-trust laws Environmental laws Consumer protection laws Laws protecting the general interest of public The purpose of passing these laws is to prevent the immoral, illegal and unethical practices...
5 Pages(1250 words)Research Paper

PR Activity & Promotional Assessment

11 Pages(2750 words)Essay

DWI (The Legal and Ethical Environment of Business)

...Recommendations to the DWI Board Being the Vise President of the Department of Risk Management of Diversified Worldwide Industries, it is my duty to have expertise in all the matters of business law and also to consult with corporate and outside counsel regarding the legal matters and further make provisions to advise the board as to the available options to minimize the risk and liabilities of the company. As for being a company, dealing with various areas, and communications being one of them, which includes in it, telecommunications audiovisual activities, internet, multimedia and publishing, it becomes obligatory to know and identify the risk involved in this industry. The telecom service providers(1)...
2 Pages(500 words)Essay

The Legal and Ethical Environment of Business Master Essay

...DWI Leisure Group: Civil Rights Issues and Recommendations The purpose of this report is to address recent threats and acts of violence against "The Queen of The Nile Casino", its employees, and its patrons. Any recommendations must be considered in light of legal precedents established pursuant to the Civil Rights Act of 1964 (Atlanta Motel, 1964 & Katzenbach, 1964). This report will address the relevant legal issues, some important ethical considerations, and conclude with some recommendations to this unfortunate situation. As an initial matter, it must be conceded that DWI Leisure Group is almost certainly bound by the provisions of the Civil Rights Act of 1964. As explained by...
2 Pages(500 words)Essay

The Legal and Ethical Environment of Business

...on behalf of her husband’s property. Moreover, another aspect that must be borne in mind in this case is that international law is unlikely to prevail, since the nature of the incident that has occurred involves an individual and therefore mandates action under the laws of a particular country. International law may be invoked in incidents involving large groups of employees or in instances where a disaster may have occurred. For example, Ozcayir (2000) has explained in detail all the legal ramifications arising out of the horrific pollution caused by the oil spill from a ship named Erika, near Turkey. In this instance, individuals affected by the incident from various countries have also been eligible for relief and...
4 Pages(1000 words)Essay

The Legal and Ethical Environment of Business

...The Legal and Ethical Environment of Business The corporate world has been rocked with a serious of scandals, starting off with the public revelations about Enron. The corporate leadership of this firm was indicted on several counts of financial fraud and money laundering. For example, Andrew Fastow, the former financial officer, cleverly disguised Enron debts and falsely inflated Enron revenues while Kevin Howard, Michael Kopper and Michael Krautz were found guilty of conspiracy, securities fraud and fraudulent trading practices.(www.marketwatch.com) This was also the case at several other organizations such as CFSB, Adelphia, Home Store and IM Clone systems, where...
2 Pages(500 words)Essay

The Legal and Ethical Environment of Business

...The Legal and Ethical Environment of Business The notion of vicarious liability or the legal doctrine of “respondeat superior” holds business principals responsible for the torts of their agents1, therefore in the case of DWI, this would mean that the firm could be responsible for the illegal harmful acts of their agents or employees. Liability under tort arises when conduct falls short of society’s standards in that it causes harm to another. Therefore vicarious liability can hold one party like DWI for example, liable for the injury or damages that are sustained by another party, inspite of the fact they may not have had any kind of...
2 Pages(500 words)Essay

BUSINESS - It's Legal, Ethical, and Global Environment

...Running Head: Business - Its Legal, Ethical, and Global Environment Business - Its Legal, Ethical, and Global Environment of the of the Institution] Business - Its Legal, Ethical, and Global Environment Ten years ago, many people in the United States did not know the meaning of a terrorist. A decade ago, we couldnt have imagined how life would change in the years to come, not just for us, but also for 1.2 billion people around the world. The continuous conflicts in the Middle East have badly damaged the relationships of Americans with...
2 Pages(500 words)Essay

The Legal and Ethical Environment of Business

...The Legal and Ethical Environment of Business Ethical Violations Discrimination means treating someone badly just because she or he is different from one (Middleton, 1999). Discrimination has been identified as the most frequent manifestation of the ethical violations. Discrimination based on gender, ethnicity, race, caste, and color have become major issues in a number of organizations. For example, the human resource manager may discriminate against the minority groups in hiring, training and development processes, compensation decisions, overtime, bonuses and other relevant incentives. Also, some relevant similar incidents have not...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Legal and Ethical Environment of Business for FREE!

Contact Us