COURSE BUSINESS, GOVERNMENT AND SOCIETY BUAD 825

GROUP ASSIGNMENT:

NAMES: Azebi Ebidiseghabofa Jane: P22DLBA80935

Question 1 Discuss what usually happens in the absence of appropriate and enforced legal

rules.

Enforced legal rules refer to laws, regulations, and other legal provisions that are actively

implemented and upheld through mechanisms of enforcement. These rules are not merely

theoretical or on paper but have practical consequences and are backed by the authority of the

government or relevant regulatory bodies.

The enforcement of legal rules typically involves the following elements:

1. Enactment: Legal rules are formally established through legislative processes or regulatory

agencies, ensuring they have the force of law.

2. Implementation: Mechanisms are put in place to ensure that legal rules are implemented and

adhered to by individuals, organizations, and entities subject to those rules.

3. Monitoring and compliance: Regulatory bodies or designated authorities monitor compliance

with legal rules through various means, such as inspections, audits, or reporting requirements.

4. Enforcement actions: In cases of non-compliance or violation of legal rules, enforcement

actions can be taken. These may include fines, penalties, sanctions, injunctions, or other legal

consequences to compel compliance or punish offenders.

5. Adjudication: In certain cases, disputes or alleged violations may be resolved through formal

legal proceedings, such as court trials or administrative hearings, where the enforcement and

interpretation of legal rules are adjudicated.

6. Deterrence: The existence of enforced legal rules and the potential consequences for non-

compliance serve as a deterrent, encouraging individuals and entities to comply with the law.

Enforced legal rules are essential for maintaining the rule of law, ensuring fair and equitable

treatment, protecting individual rights and public interests, and promoting social order and

stability within a society or jurisdiction. Without effective enforcement mechanisms, legal rules

may become mere guidelines or suggestions, lacking the necessary authority and consequences

to compel compliance.
It is important to note that the specific enforcement mechanisms and processes can vary

depending on the legal system, jurisdiction, and the nature of the legal rules involved.

In the absence of appropriate and enforced legal rules, various problems and challenges can

arise, leading to potential chaos, injustice, and a breakdown of social order. The following are

the notable consequences:

1. Violation of rights and liberties: Without legal rules and enforcement mechanisms in place, the

protection of fundamental human rights and civil liberties becomes severely compromised. In

such a situation, individuals or groups within society may face various forms of discrimination,

oppression, or infringement of their basic human rights, such as freedom of speech, freedom of

religion, freedom of assembly, and equal protection under the law. Without legal recourse or

mechanisms to ensure accountability, these rights and liberties can be violated with impunity,

leading to a breakdown of human dignity and the erosion of fundamental freedoms.

2. Increased crime and lawlessness: The absence of legal rules or their poor enforcement creates

an environment where criminal activities and lawlessness can thrive. When there is no fear of

consequences or accountability for unlawful actions, individuals may be more inclined to engage

in various forms of criminal behavior, such as theft, violence, fraud, and other illicit activities.

This can lead to a breakdown of public safety, heightened insecurity, and an overall erosion of

the rule of law, making it difficult for society to function properly and for citizens to feel secure.

3. Lack of social order and stability: Legal rules and their enforcement play a crucial role in

maintaining social order and stability within a society. In their absence, chaos and anarchy can

prevail, as there would be no established norms, regulations, or mechanisms to govern

interactions and resolve conflicts. This can lead to a breakdown of the social fabric, with
increased conflicts, disputes, and a general sense of insecurity and instability. Without legal rules

and enforcement, the foundations of a well-functioning society are undermined, making it

challenging to maintain peace, cooperation, and a sense of community.

4. Economic instability and uncertainty: Businesses and economic activities require a stable legal

framework to operate effectively and efficiently. Without appropriate legal rules and

enforcement mechanisms, there may be significant uncertainty regarding property rights,

contract enforcement, fair competition, and the protection of intellectual property. This can

hinder economic growth, discourage investment, and create an environment where businesses

may be hesitant to engage in long-term planning or expansion due to the lack of legal certainty

and predictability.

5. Abuse of power and corruption: In the absence of legal constraints and accountability

mechanisms, those in positions of power or authority may be more inclined to abuse their

authority and engage in corrupt practices without fear of consequences. Without legal checks and

balances, there is a higher risk of misuse of power, cronyism, nepotism, bribery, and other forms

of corruption, as there may be no effective means to hold those in power accountable for their

actions. This can undermine public trust, erode the integrity of institutions, and create an

environment of exploitation and injustice.

6. Lack of justice and fairness: Legal rules and their enforcement are essential for ensuring that

justice is served and that individuals are treated fairly and impartially, regardless of their social

status, wealth, or other factors. Without these mechanisms in place, injustice, discrimination, and

unequal treatment may become more prevalent. The absence of a fair and impartial legal system

can lead to a breakdown of trust in institutions, a sense of disenfranchisement among certain

groups, and a general perception of unfairness and lack of equal opportunity within society.
It is important to note that while legal rules are essential for maintaining order, stability, and

justice, they must be appropriate, fair, and enforced in a transparent and impartial manner.

Excessive or unjust legal rules can also lead to oppression and undermine the very principles

they are meant to uphold.

Question 2 Discuss the justification for or against business ethics?

Business ethics refers to the principles, values, and standards that guide the conduct and

decision-making processes of businesses and their stakeholders. It is a set of moral principles and

norms that define acceptable behavior in the business world, encompassing a wide range of

issues, including:

1. Corporate governance: This involves the ethical management of companies, transparency,

accountability, and responsible leadership practices.

2. Ethical treatment of employees: This includes fair labor practices, non-discrimination,

workplace safety, and respect for employee rights.

3. Environmental responsibility: This involves sustainable business practices, minimizing

environmental impact, and promoting eco-friendly initiatives.

4. Fair competition: This entails adhering to antitrust laws, avoiding monopolistic practices, and

promoting healthy competition.

5. Consumer protection: This involves honest advertising, product safety, and respect for

consumer rights and privacy.

6. Ethical sourcing and supply chain management: This includes responsible sourcing of

materials, ensuring fair labor practices throughout the supply chain, and avoiding unethical

practices like child labor or human rights violations.

7. Corporate social responsibility: This involves businesses contributing positively to society

through philanthropic efforts, community development programs, and sustainable practices.

8. Anti-corruption and anti-bribery: This involves maintaining integrity in business dealings,

avoiding conflicts of interest, and rejecting any form of bribery or corruption.

Business ethics aim to strike a balance between maximizing profits and acting responsibly

towards stakeholders, such as employees, customers, suppliers, shareholders, and the broader

community. It provides a moral compass for businesses to navigate complex situations and make

decisions that not only benefit the company but also contribute to the greater good of society.

Implementing strong ethical practices can enhance a company's reputation, build trust with

stakeholders, attract and retain talented employees, and mitigate legal and financial risks

associated with unethical behavior. In today's increasingly transparent and socially conscious

business environment, ethical conduct has become a competitive advantage and a key factor in

long-term sustainability and success.

The debate surrounding the justification for or against business ethics is multifaceted and has

been extensively discussed by scholars and practitioners alike.

Arguments in favor of business ethics:

1. Moral and ethical considerations: Businesses operate within the broader context of society and

have a moral obligation to consider the welfare and well-being of various stakeholders, including
employees, customers, communities, and the environment. Ethical business practices

demonstrate a commitment to upholding moral principles and values, such as honesty, fairness,

respect, and integrity. By embracing ethical practices, businesses contribute to the greater good

of society, promote trust and transparency, and align their operations with societal expectations

and norms. Furthermore, ethical decision-making helps businesses navigate complex situations,

mitigate potential negative impacts, and foster a sense of responsibility and accountability

towards their stakeholders.

2. Long-term sustainability: Ethical business practices are essential for fostering long-term

sustainability and ensuring the longevity of an organization. By promoting responsible decision-

making, ethical companies are better equipped to navigate challenges, identify and mitigate risks,

and adapt to changing market conditions. Additionally, ethical practices help build strong and

lasting relationships with stakeholders, such as customers, suppliers, and local communities,

fostering trust and loyalty. These enduring relationships can provide a competitive advantage and

contribute to the overall resilience and stability of the business. Moreover, companies that

prioritize ethical practices are better positioned to manage reputational risks and avoid the

potential negative consequences associated with unethical behavior, such as legal issues,

boycotts, or loss of investor confidence.

3. Legal and regulatory compliance: Business ethics help ensure compliance with relevant laws

and regulations, reducing the risk of legal liabilities, fines, and reputational damage. By adhering

to ethical standards, companies can proactively identify and address potential areas of non-

compliance, implement robust internal controls, and foster a culture of transparency and

accountability. This not only mitigates legal risks but also demonstrates a commitment to

operating within the established legal framework, which can enhance credibility and stakeholder
trust. Furthermore, in an increasingly globalized business environment, ethical practices can help

companies navigate the complexities of cross-border operations and ensure compliance with

diverse legal and regulatory requirements.

4. Competitive advantage: Companies with strong ethical standards can gain a significant

competitive advantage in several ways. First, ethical practices can enhance brand reputation and

customer loyalty, as consumers increasingly value socially responsible and transparent

businesses. Secondly, ethical companies are better positioned to attract and retain top talent, as

employees often prioritize working for organizations that align with their values and offer a

positive work environment. Additionally, ethical business practices can foster innovation by

promoting open communication, trust, and collaboration within the organization. Furthermore,

companies with robust ethical frameworks may have better access to capital and investment

opportunities, as responsible investors increasingly consider environmental, social, and

governance (ESG) factors in their decision-making process.

Arguments against business ethics:

1. Profit maximization: One of the main arguments against prioritizing ethical considerations in

business is the notion that the primary responsibility of a company is to maximize profits for its

shareholders. This perspective, often referred to as the shareholder primacy model, suggests that

ethical and social considerations should be secondary or even irrelevant to the primary goal of

profit maximization. Proponents of this view argue that by focusing solely on generating

financial returns, businesses can operate more efficiently and allocate resources in a manner that

benefits shareholders and drives economic growth. They assert that ethical considerations can

potentially hinder a company's ability to remain competitive and may lead to suboptimal

financial performance.
2. Subjectivity and cultural differences: Ethics are inherently subjective, and what is considered

ethical can vary greatly across different cultures, societies, and belief systems. This subjectivity

poses a significant challenge for businesses operating globally, as they must navigate diverse

cultural norms, values, and expectations. Imposing a universal set of ethical standards may be

perceived as cultural imperialism or a disregard for local customs and traditions. Additionally,

cultural differences can lead to conflicting interpretations of ethical principles, making it difficult

to establish and enforce consistent ethical guidelines across all regions and markets in which a

business operates.

3. Regulatory burden: Implementing and enforcing ethical standards within an organization can

impose additional administrative and operational costs, as well as bureaucratic burdens.

Companies may need to invest in training programs, compliance monitoring systems, and

dedicated personnel to oversee ethical practices. This can result in increased overhead expenses,

potentially hindering a business's competitiveness and efficiency. Furthermore, some argue that

ethical standards imposed by external parties or regulations can be overly prescriptive and fail to

account for the unique circumstances and challenges faced by individual businesses, leading to a

one-size-fits-all approach that may not be optimal for all organizations.

4. Conflicting stakeholder interests: Businesses often face competing interests among various

stakeholders, such as shareholders, employees, customers, suppliers, and local communities.

Prioritizing ethical considerations may not always align with the interests of certain stakeholders,

particularly when it comes to maximizing short-term financial gains or maintaining a competitive

edge. For example, implementing environmentally sustainable practices may increase

operational costs, potentially conflicting with shareholder expectations for higher returns on
investment. Similarly, prioritizing ethical labor practices or fair trade initiatives may result in

higher production costs, potentially impacting competitiveness and profitability in the short term.

These arguments highlight the complexities and potential trade-offs involved in prioritizing

ethical business practices. However, it is important to note that proponents of ethical business

practices argue that adopting a long-term, stakeholder-centric approach can ultimately lead to

sustainable success, enhanced reputation, and better risk management, outweighing the potential

short-term costs or challenges.

It's important to note that these arguments represent different perspectives, and the justification

for or against business ethics may depend on individual values, societal norms, and the specific

context in which businesses operate. Ultimately, striking a balance between ethical

considerations and business objectives remains an ongoing challenge and a subject of ongoing

debate.

References:

Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and

sustainability in the age of globalization (4th ed.). Oxford University Press.

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2019). Business ethics: Ethical decision making and

cases (12th ed.). Cengage Learning.

Tamanaha, B. Z. (2004). On the rule of law: History, politics, theory. Cambridge University

Press.