Introduction
In organizations, ethical philosophy provides a framework for decision-making that prioritizes moral principles and values. By instituting ethical guidelines and rules of conduct, companies can guarantee that their actions correspond with legal requirements. This fosters an environment of honesty and accountability, decreasing the likelihood of noncompliance and increasing stakeholder trust. If business laws are followed, employees are less likely to feel pressured to participate in corrupt behavior. Compliance with regulations governing fair wages and working hours, for example, can assist in guaranteeing that workers are compensated reasonably and are not compelled to work insane hours. Employees are less likely to get involved in corrupt behavior, such as taking bribes or participating in other kinds of unlawful conduct, when treated fairly.
Main body
Another way that adherence to business-related laws can also decrease the likelihood of corruption is by encouraging accountability and transparency. When businesses comply with the requisite rules and regulations, they send a clear message to employees that ethical behavior is valuable and that they are expected to abide by it as well. This can foster a culture where employees are more inclined to report unethical practices rather than engage in them themselves. Furthermore, enterprises that follow business laws are more likely to have rigid structures for detecting and reporting unethical conduct and mitigating potentially destructive issues before they deteriorate.
Cooperation with business-related laws can also contribute to creating a sound moral organizational culture. Commercial enterprises that comply with these laws demonstrate their dedication to the ethical code of conduct. Consistent adherence to corporate rules led by executive staff members ascertains that all the other employees follow suit and automatically work as required (Shah & Khan, 2020). Therefore, such organizations are likely to have formed specific guidelines and processes for reporting unethical behavior. As a result, such robust organizational structures can make it easier for employees to make the appropriate ethical decisions when they observe any of their colleagues engaging in corruption.
Complying with business regulations can help firms limit the risk of legal and reputational damages. Businesses that violate these regulations may suffer penalties, litigation, and reputational harm. It is better to be on the safer side of the law to avoid unnecessary complications that negatively affect normal business operations. Furthermore, if a business is recognized for abiding by the law, it will help improve its reputation and make it more appealing to consumers, investors, and other stakeholders.
Since 2015, the United States has been plagued by business-related corruption, which has taken several forms. Fraud is one of the most common types of corporate corruption. It entails the deliberate distortion of facts for monetary advantage. Deceptive accounting, Ponzi schemes, and investment scams are typical fraudulent activities (Gadinis & Miazad, 2020). Another typical sort of corruption that has grown in popularity in the U.S. is money laundering. It entails passing the proceeds of unlawful activity through financial institutions or other monetary intermediaries to make money seem like legitimate revenue.
Conclusion
Bribery is also a type of corporate corruption in which anything of value is given or received in exchange for a favor. It is frequently associated with corruption in government contracts and business bids. Another type of business-related corruption that has grown in popularity in the United States is insider trading. It is defined as the unlawful use of confidential organizational information not available to the general public to make stock market trades (Gadinis & Miazad, 2020). Collusion is the final kind of corporate corruption when firms collaborate to suppress competition. This kind of graft has been prominent in several lucrative corporate industries, such as medicine, technology, and banking.
References
Gadinis, S., & Miazad, A. (2020). Corporate law and social risk. Vanderbilt Law Review, 73(5) Web.
Shah, S. S., & Khan, Z. (2020). Corporate Social Responsibility: A pathway to sustainable competitive advantage? International Journal of Bank Marketing, 38(1), 159–174. Web.