Examining the Relevance of Political, Legal, and Ethical Issues in Local and International Business

??????????? Contemporary business activities, regardless of whether the business is local, national, or international, involve understanding the inner workings of a business, including that of internal stakeholders and external stakeholders, and how best to ensure organizational development. With human capital and the associated business processes ensuring that the mission, goals, objectives, and vision are met, understanding the legal and regulatory factors that affect business is essential. The success of a business involves critical understanding and substantive ethical application of governmental legislation locally and nationally (Spott et al., 2023). When a company is operating overseas, the company is subjected to following the country’s laws and all legal parameters in that country and respecting international treaties (Spott et al., 2023). The variances of legal structures are significant to all business types, and businesses must understand business law at the state and federal levels. Additionally, noting how governments regulate businesses can be direct or indirect.

Political Issues and Financial/Business Operations

??????????? Politics and political issues can have varying degrees of impact on a business's financial and business operations in many ways. Regional regulations and laws can determine how a company operates and even whether the company can benefit from expanding internationally (Enneking et al., 2019). Familiarizing oneself with the government’s role in business provides many protection levels. Political factors influence companies amongst competitors within the company’s domestic territories, and if branching out into ‘international waters,’ being prepared for globalization is necessary. Politics, regardless of where, will impact decisions that are made relative to labor laws, transportation, taxes, and education, thus having a positive or even a negative influence on a business (Enneking et al., 2019; Mbah-Takwi, 2020; Spott et al., 2023). Each category involves strategic thinking and planning based on objective data to ensure that financial and business operations run through mechanisms that allow for fluidity.

Legal Issues and Financial/Business Operations

??????????? As with politics, legal issues with financial and business operations, regardless of the size of the business, involve companies protecting themselves from common legal issues and issues that may emerge unexpectedly. Such legal issues that may harm financial and business operations are employee misclassification, employment law violation(s), wrongful termination(s), discrimination lawsuits, workplace accidents, intellectual property infringement, and breach of contract matters (Enneking et al., 2019; Mbah-Takwi, 2020; Spott et al., 2023). Companies should be familiar with the differentiation of legal issues versus ethics because, even though the two terms are interrelated, ethics relates to a profession within the business realm. At the same time, legalities include the violation of professional ethics but are closely correlated with the legal infrastructure.

Ethical Issues and Financial/Business Operations

??????????? Ethics has a central premise in defining what is right or wrong. Within the professional setting, companies must have well-established policies to ensure that all employees understand their role and the professional behaviors that coincide with it (Enneking et al., 2019; Mbah-Takwi, 2020). Business ethics involves principles that guide decision-making, and the decisions made within the various departments of a company will affect various aspects of finances and operations (Spott et al., 2023). Checks and balances systems through the management and leadership principles from middle and upper management provide for looking at innovative processes to ensure that the financial and operational aspects of the company are aligned with progressive growth. Financial ethics involves an accounting system for internal transparency and can assist with ensuring that budgeting and all financial activities are intact (Hasnain, 2016; Spott et al., 2023). Continuous conversations about ethics should be a part of the continuing education program for all roles throughout a company or organization (Hasnain, 2016; Spott et al., 2023). Employees responding to ethical matters reduces the chances of lawsuits or costly mishaps requiring expensive remediation. Ethical conduct from all professionals within a company ensures that each profession’s contribution will meet the mission, goals, objectives, and vision, thus improving the financial aspects of the business (Mbah-Takwi, 2020).

Political/Legal/Ethical Issues and Corporate Social Responsibility (CSR)

??????????? Many companies are becoming socially aware and want to enhance their brand by pledging allegiance to sustainability (Mbah-Takwi, 2020). Research supports that political connections positively influence private companies’ CSR programs and that companies with political connections fare better than those without such programs (Enneking et al., 2019; Mbah-Takwi, 2020; Spott et al., 2023). Part of this can be due to the vast influence of political entities in disseminating information about a specific company and garnering support through political allies and affiliations. As with any other type of business, companies with CSR programs must be transparent in their efforts, particularly within the public realm (Hasnain, 2016). CSR efforts, despite being a vessel for the common good of society, can involve donations and other fiscal matters for which those resources should be accounted. CSR can also be intertwined through business processes and, when facilitated, should be strategically implemented to ensure that obstacles associated with a CSR initiative are minimal to non-existent.

Political/Legal/Ethical Issues and Human Resources (HR)Departments

??????????? The role of human resources within any company is significant due to this profession’s role in ensuring legal compliance and ethical policies are enacted with processes existent throughout the divisions within a company (Hasnain, 2016). Politically, human resources keep a pulse on public opinion and government changes to ensure that change management and organizational transformation processes are conceptualized and implemented appropriately (Spott et al., 2023). Managing workforce changes is a substantive process, and human resources organizations and departments of organizations are conscious of how value systems are impacted and can disrupt processes, including financial and business operations, within a company.

Conclusion

??????????? Every business is subject to specific types of regulations that the government imposes, and it is mandatory for businesses to follow them or face fines, legal action(s), or being forced to shut down. Because of the numerous complexities of running a successful business, it is imperative that company owners and managers throughout the organizational hierarchy critically understand their roles with that of the larger business itself (Dholakia, 2023; Hasnain, 2016). When obstacles are not addressed relative to political, legal, or even ethical issues, grievances can result in various outcomes, from a warning to severe civil and/or other punitive actions (Dholakia, 2023). The regulatory parameter towards ensuring compliance provides protections for employees of a company, its associated stakeholders, and the public. Tax codes, employment, and labor laws, antitrust regulations, and regulations with advertising are necessary to ensure businesses operate responsibly and ethically (Dholakia, 2023; Hasnain, 2016). Because politics and decisions made, along with laws and multidisciplinary ethical concerns, may have direct or indirect adverse effects in various aspects of business, having a strategic plan that embodies the tenets of various CSR efforts can assist with efforts in conjunction with continuous organizational compliance. HR is a knowledgeable entity within many businesses that work with upper-level and middle management towards being compliant through political, legal, and ethical scenarios in which there are varying degrees of conundrum.

References

Dholakia,?U. (2023). Business operations transparency.?Transparency in Business,?7(1), 23-48.?https://doi.org/10.1007/978-3-031-12145-6_2

Enneking,?L., Giesen,?I., Schaap,?A., Ryngaert,?C., Kristen,?F., & Roorda,?L. (2019).?Accountability, international business operations and the law: Providing justice for corporate human rights violations in global value chains. Routledge.

Hasnain,?S.?S. (2016). A few good knowledge transfer mechanisms: Keys to successful military operations.?Archives of Business Research,?4(4), 334-360.?https://doi.org/10.14738/abr.44.2103

Mbah -Takwi,?F. (2020). Business management and innovation: A critical analysis of small business success.?American Journal of Operations Management and Information Systems,?5(3), 162-180.?https://doi.org/10.11648/j.ajomis.20200503.15

Spott,?M., Nauck,?D., & Taylor,?P. (2023). Modern analytics in Field and service operations.?Transforming Field and Service Operations,?5(2), 85-99.?https://doi.org/10.1007/978-3-642-44970-3_6

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