Organizations Are Governed By Laws, Regulations, And Ethics.

864 WordsMay 10, 20174 Pages
Organizations are governed by laws, regulations, and ethics. Law refers to the normalized set of standards formalized for the people in a particular region or jurisdiction over a given period of time. Ethics, on the other hand, refer to a set of principles held by a group of professionals that dictate their behavior. While ethics are social guidelines that are based on moral values and principles and their violation does not attract penalties, laws are rules and regulations which when violated attract specific penalties and consequences. At times, conflict arises in organizations. As a result, firms ensure that dispute resolution mechanisms are in place to suppress the conflict and return operations and productivity to normal. Alternative…show more content…
Among the companies that have had to settle claims with the U.S. Department of Justice for violating the United States Environmental Protection Agency Clean Air Act include KIA Motors Corporation and Hyundai Motors Company. The two were fined over US$100 million for selling more than a million vehicles that emitted greater than EPA-specified quantities of greenhouse gases. Fuel economy regulations and standards exert dire financial burdens on automakers and distort the industry’s normal product cycle thus imposing a huge financial burden on manufacturers. Huge amounts of money are needed to develop, test, and produce catalytic converters and other devices that reduce emissions. Safety regulations, on the other hand, limit the designer’s options regarding the creation of new vehicle concepts. The ethical rules that affect automakers include consumer pricing of vehicles, safety and appearance of cars, and staff issues in terms of health, safety and fair treatment in the workplace. Further, employees are concerned with benefits, such as pensions, extra work rewards, for example, vacations. Ethical rules in the motor industry prevent companies from outsourcing the production of particular components since the other company may produce substandard products that lead to losses to the main company. Ethical rules may also bring about compliance problems as companies seek to strike a balance between safety, productivity, and inconvenience. However, adhering to ethics leads

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