The Legal Environment of Business

The Legal Environment of Business Name: Course: Professor Name: (February 27, 2012) .  The Legal Environment of Business Ethics refers to the drive or motivation on ideas on what is right or wrong. It incorporates moral values and rule of law. Business ethics term is applied in different contexts and means differently to organizations. Business ethics history has been in existence for many decades and scholars interpret it with variations (Fieser, 2011). Business ethics has been associated to the recent developments especially in the nineteen seventy periods. The second meaning of business ethics is related to scandals and corruption deals that raised the necessity of a working environment endorsed by accountability. The third image of business ethics refers to the movement of systems within organizations (George, 2010). It is believed that business ethics is in form of structures relating to ethical codes, ethical hackers, ethical officers, ethical training and ethical committees (Michael, 2006). Business ethics in the Post-Enron Era listed the responsibilities of the American government and the responsibilities of the American businesses. The collapse of Enron specialty is evident to have exposed moral decay in America (McGraw, 2007). There are numerous scandalous episodes in the American businesses. This has raised the need to reform the ethics in the American businesses today. The government leaders and the organizational leaders have the responsibility of installing business ethics (Fieser, 2011). This will enable business corporations in America have a predetermined code of conduct, increasing transparency and trust between the involved stakeholders. Business ethics enhancement will enable customer’s satisfaction. Enron earthquake has swept away the confidence in the public. This has altered the operating systems of the capital markets of America. Capital markets are considered the heartbeat of the American economy. Enron earthquake has pushed people out of businesses due to lost investments and massive layouts. This is a loss beyond imagination in the American history (George, 2010). The retirement security and investments worth millions of dollars has been tampered with illegally. This has made the topic of business ethics substantially critical in the American businesses. Conflict of ethical values and shareholder values is critically addressed. Enron collapse led to the breach of trust (McGraw, 2007). Organizations and the business entities of America have the responsibility of turning the scandals to net gain for the sake of consciences, economy and the American country. Enron earthquake has destroyed the America name in the business context. This has brought in the need to reform the corporate ethics in the American business today (George, 2010). Many states of America including the Washington state are sorting out things after the Enron disaster. The Senate Governmental Affairs Committee is at the stages of fully addressing the Enron disaster in a way that it will not occur again (McGraw, 2007). The Federal Government must set policies that will enforce business ethics in the American businesses. This will assist in safeguarding the plights of the American workers four hundred and one K plans. Federal government must enforce policies that ensures that the rating agencies and the auditors are independent and not under the influence of powerful individuals in the American business. This will assist transparency in the agencies and enable the public to regain the trust with the American businesses. The agencies will have more power to detect frauds and deal with the menace appropriately (Fieser, 2011). Business people and the businesses must set standards in the ethical code. This is because the government cannot put law enforcers at every corner of the American nation to ensure ethics are obeyed. The American people have the responsibility of ensuring that the project succeeds in reforming corporate ethics (George, 2010). Individuals and business organizations must own up to the ethical standards to make the implementation phase easy and fast. The American nation is blessed with an economic growth. American nation has been credited with businessmen and businesswomen who are innovative and adventurous (Michael, 2006). The products and services offered by the American businesses enable easy life for the American people not forgetting the numerous exports to other countries. Business industry employs millions of people directly and indirectly (Fieser, 2011). This has raised the living standards of the American people significantly. It is worth noting that the government does not create jobs, businesses creates jobs and a means of livelihood. This proves that it is difficult to be anti-businesses and at the same time be pro-jobs. The government must enhance a policy of creating an environment that will enhance business transparent and conducive. This will enable a healthy competition and a fair share of the national opportunities (McGraw, 2007). A business environment that is conducive will equip people in making the best returns in businesses and raising the living standards to the people and the nation as well. The government must formulate a policy that regulates the private sector to the desired business levels and ethics incorporated (Fieser, 2011). Democratization of the American capitalism in America contributed immense changes in the business context. Democracy has been identified as remarkable positive change. This is especially in the period nineteen thirty to nineteen eighty. This period enabled majority of Americans invest heavily enabling America attain the position of a super power. Vast investments were made by the middle class workers raising their living standards. Middle class workers got their capital from the four hundred and one K plans (Fieser, 2011). The plan was characterized with personal investments and mutual funds. Incorporation of corporate ethics will enhance increased trust by the public (George, 2010). The American people talked about stock, the wave of the four hundred and one K had driven people to investors. Enron collapse made many Americans loose trust with the American businesses and the government, as well. Increased recognition of investments made the gap in trust skyrocket (Fieser, 2011). Enron disaster ruined the middle class investors. There has been intense pressure to the shareholders, directors and chief executive officers. Ruins caused by the Enron era could have been avoided if the government of America and the American businesses embraced corporate ethics. There have been intense pressures from the business leaders to increase sales and profits. The businesses environments have become competitive and many firms are unable to meet short term goals making them turn to unethical issues in attaining the goals and money. Increased competition has compromised on the quality (McGraw, 2007). The consultants and the accountants have been under immense pressure to carefully report the books of accounts in the shortest time possible and in the best accuracy possible way (George, 2010). This indicates that the government should formulate a policy that sets the minimum expected standards in the financial analysts. This will enable total accountability and elimi...