Legal issues Essay Example

Legal issues Essay Legal issues Name: Course: Date: We will write a custom essay sample on Legal issues specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Legal issues specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Legal issues specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Question 1 The concept of â€Å"conflict of interest† is defined by the RTL Code as a situation where an employee’s personal interests and the company’s interests clash or fail to merge. The code dictates that as much as the company values the employees’ personal lives, employees should avoid any circumstances that would be categorized as a conflict in their interests and those of the company (Chryssides Kaler, 2003). The code provides specific instances where conflict of interest may arise such as engaging in a competitive business with RTL, utilizing business time by indulging in RTL-related work and engaging in improper and illegal payments (Ferrell et al, 2012). Question 2 The major players in the case scenario include Tim Torrens, his wife and the NZ Company. In this case, several codes were breached. First, Tim Torrens violated Article 5.3 of the code of ethics that prescribed the non-acceptance of gifts by employees of RTL. Torrens was offered an all expenses paid four-day holiday that could be categorized as a gift since it was not part of his work description. He was also offered a weekend playing in a golf tournament that violated the same article. Torrens also violated Article 5.4 that prohibited his wife from accompanying him on the four-day holiday. Tim also violated Article 5.1 that banned employees from engaging in any other business with companies that competed in any way with RTL. He instead liaised and associated himself with NZ Company, a fabric supplier for RTL. Question 3 The Shane Smith scenario also displays several breaches of the RTL code. Article 6.0 of the RTL code required employees to keep accurate and honest records of the accounting and auditing transactions. Shane Smith realized this violation but failed to point out that the upper level management was embezzling company funds. In this way, he did not do his duty as prescribed by the code. Any accounting irregularities realized by an employee should have been reported to the authorities. Shane also violated Article 7.0 of the code that stipulated that if any actions took place that would jeopardize the purpose of the code; the employee should present the issue to the company. In his case, he had a choice to either report the accounting irregularity and face the wrath of the chief financial officer or report the matter to the management and let them handle the issue. Reasoning out of fear made the employee hesitate and this, in itself, was a breach of the code because in reporting the unethi cal behavior by the CFO, Shane would have remained anonymous and kept his job. Question 4 The issue of business ethics has been debated by two major parties with Milton Friedman’s theory arguing that a company’s only social responsibility was to increase its revenues provided it complied with the industrial regulations that prohibited deception or fraud (Halbert Ingulli, 2012). Other proponents of business ethics argued that legal regulations were complimentary and that they should be reinforced with other regulations to enforce a higher sense of behavior in the workplace (Jennings, 2012). RTL Company adopted the Milton Friedman’s approach toward maintaining business ethics. This is because Friedman championed for increased manager cooperation and contribution in influencing social, environmental and ethical factors to achieve the ultimate goal of ethics within the workplace (Tittle, 2002). RTL’s code of ethics was also motivated by the avoidance approach in Freidman’s theory that sought to avoid any legal or financial conflicts before they occurred (Allhoff Vaidya, 2008). In my opinion, the RTL code of ethics is a very efficient and workable set of regulations for the workplace. An excellent ethical code is expected to address the issues of all the stake holders without favor or discrimination, and the RTL code happens to do a good job in as far as these objectives are concerned (Shaw, 2011). A useful ethical code covers the social and the functional aspects of the stakeholders and all the ethical areas such as compliance, respect for company property and conflict of interests (Rendtorff, 2009). References: Allhoff, F., Vaidya, A. (2008). Business in ethical focus: An anthology. Peterborough, Ont: Broadview Press. Chryssides, G. D., Kaler, J. H. (2003). An introduction to business ethics. London: Chapman Hall. Ferrell, O. C., Fraedrich, J., Ferrell, L. (2012). Business ethics: Ethical decision-making and cases. Mason, OH: South-Western/Cengage Learning. Halbert, T., Ingulli, E. (2012). Law ethics in the business environment. Mason, OH: South-Western Cengage Learning. Jennings, M. (2012). Business: Its legal, ethical, and global environment. Mason, OH: South-Western Cengage Learning. Rendtorff, J. D. (2009). Responsibility, ethics, and legitimacy of corporations. Frederiksberg, Denmark: Copenhagen Business School Press. Shaw, W. H. (2011). Business ethics. Boston, MA: Wadsworth/Cengage Learning. Tittle, P. (2002). Ethical issues in business: Inquiries, cases, and readings. Peterborough, Ont: Broadview Press.