I believe that this course will allow me to become savvier in business-related lawsuits that could be encountered during my future career. It is essential to have sufficient knowledge regarding the legal environment in which a company operates. For example, civil and criminal laws are defined by the entity that was offended (Jennings, 2017). In the case of civil laws, another intricate issue is equity courts that decide fair remedies that are not strictly bound by the common law (Jennings, 2017). There are many nuances that affect the outcome of each business interaction, and unethical behavior does not always equal illegal. While these cases are not defined by law, many companies tend to avoid them to keep their public approval high. Business ethics is a behavior of a company in a situation with dubious practices that might not be restricted by law but can be harmful to its customers and society as a whole. Nowadays, companies prefer to state their social responsibility directly to define how they see their ideal business conduct.
One of the most curious and simultaneously outraging cases of unethical behavior from the last year is the case of Nikola’s trucks advertisement. Nikola Motors specializes in innovative vehicle technologies, not unlike the more famous firm Tesla (Morris, 2020). In the middle of 2020, the company had released a video statement that revealed a new technology that was considered a significant game-changer among electric car manufacturers (Morris, 2020). The video with the prototype was staged, and the CEO tried to manage the situation by explaining that the intention was to show a moving vehicle instead of providing actual footage of a working prototype (Morris, 2020). This incident has brought the company’s stock down by 4.7 times since June 2020, indicating the disastrous impact of unethical behavior once it is uncovered (Fortune Editors, 2020). While this is only a single example of such a case, false advertising is a common type of unethical business practice. I utterly condemn such a practice, as it brought many people into false belief regarding a breakthrough opportunity to reduce the pollution of cargo trucks.
It is essential for a small business to keep up with the current regulations, laws, and standards within its industry. The Small Business Administration (SBA) defines law constraints for local businesses in the United States (“Part I: The government definition of a ‘small business’,” n.d.). To comply with its requirements, small firms are encouraged to join a local trade association that will help them in dealing with legal issues (Jennings, 2017). These legal responsibilities ensure that a small business does not exhibit practices that discriminate against a group of people. I agree that a company must pursuit a purpose higher than profit and consistently promote the interests of society. For example, there is a set of anti-discrimination laws that prevent companies from establishing job requirements that exclude a group of people based on their gender, race, sexuality, and other factors unrelated to the job (“Small business requirements,” n.d.). This law ensures equal opportunities for all citizens, which is a vital factor in creating a stable and peaceful society. In conclusion, business regulations for firms of all sizes are equally crucial to uphold in order to ensure that the market environment remains fair for all players while keeping customers in priority.
References
Fortune Editors. The biggest business scandals of 2020. Fortune. Web.
Jennings, M. M. (2017). Business: Its legal, ethical, and global environment (11th ed.). Cengage Learning.
Morris, D. Z. (2020). Nikola, Tesla, and the electric revolution coming to American trucking. Fortune. Web.
Part I: The government definition of a “Small business.” (n.d.). U.S. Department of the Treasury. Web.
Small business requirements. (n.d.). U.S. Equal Employment Opportunity Commission. Web.