Legal and Ethical Environment of Business

This ethical implementation  plan provides clear guidelines on the rules that should be followed by the company employees, vendors, board of directors, and all the business   operations in general. The code of conduct, therefore, is the collection of rules, principles, values and employees’ expectations, behavior and relationship that a firm consider important and believes to be basic for the successful operations. These rules governing business operations usually exhibit variations depending on the business type under operation and how and where the business is. The rules guiding the local and international business may differ though they have many things in common.

The overseas business varies and therefore, has different rules. This business may range from direct exporting, cooperate relationship, distributor or sale representative to branch offices of the parent company  located in a different country, some wholly owned corporations and even joint venture. The  behavior code of ethics required of the people operating the business may include various things. First, it is important to consider the structure of relationship,  the term of agreement and the scope and length of disclosure that exists between the intending trade countries. These provisions and their enforceability are very crucial when complicated by the distance and the different legal systems. Knowing the different cultures and traditions practices that exist there are of great importance when carrying out overseas business. This ensures that no trouble will arise while working with oversee employees. The ultimate proof method of dealing with the above is the establishment of code of conduct based on the company’s values and objectives. There should be a copy of these instructions given to all the company’s employees, vendors, and agents.

            Trademark laws and right of a given country are important to understand before venturing into overseas trade. Contrary to international copyrights, a legally registered domestic trade mark does not automatically confer any trademark right in the other country. It is of great importance to ensure that the trademark makes sense to the targeted people as this  avoids the repetition of mistakes that have been done by another company. Change in slogans, modification of names and redesigning to get acceptance in the market are consequences of failing to understand the target group. Another crucial area is the compliance programs. These are the legal requirement and the company must ensure that it adheres to them to avoid the consequences that may result from the unlawful transactions. For instance, the imports and exports are subject to customs and company regulations. The employees should avoid conflict of interests in the business. This may refer to personal interest or interest of the immediate family. The immediate family may include the employee’s parent, children and spouse just to mention a few. A conflict of interest arises when an employee takes action or has an interest that makes it difficult to perform his or her work effectively and objectively. Employees, therefore, must avoid this issue to the best of their ability. The other area of importance is the confidentiality of information; employee must maintain confidentiality of the information entrusted upon them by the suppliers and customers  as well as the company management. It is always assumed that the employee should be able to distinguish between right and wrong activity. The company’s employee or vendors should be in a position to tell when an activity is legal, balanced and right. The company must keep close monitoring of their employees to ensure that they are strictly following all the rules laid down.

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