Saquoia Cox
Professor Currie ACC647Z2
3 October 2015 Legal and Ethical Issues Business Owners Face

Legal and ethical issues play a big part in the operation of a business for many owners. Business owners have to take into account many issues such as legal, regulations, safety, liability and brand of the company. Business owners must know their legal responsibilities and code of ethics, because they have to adhere to both when running a business. Many business owners face these issue everyday with changing regulations and laws, making sure that their reporting is ethical and up to standards.
"Navigating all of the legislative and regulatory changes that occur throughout the course of the year can be challenging, taking business owners away from other important aspects of running their businesses," said Martin Mucci, Paychex president and CEO. Business owners have to follow state and federal labor laws which can be very taxing on business owners. Business owners have to monitor their tax reforms, because with the Tax Increase Prevention Act of 2014 the processing of taxes will affect the way that business owners have budgeted for their businesses. Business owners are also affected by new health reforms which state that “employers must be prepared to meet new IRS mandates to file annual information returns with the IRS and provide statements to their full-time employees about the health insurance coverage the employer offers” (Brooks, 2015)
Business owners have to know the rules and regulations which involve limitations on things such as hours worked, overtime pay, and wrongful termination. They also have to monitor any changes to the immigration system that may impact their internal hiring and staffing procedures. The Form I-9 is one in particular, because it deals with procedures and work authorization documentation. Business owners also have to be prepared to address potential labor gaps if their authorized workers decide to for better jobs with higher pay. Overtime regulations have been changing as well since the U.S Department of Labor has been looking to change certain things. The U.S Department of Labor revised regulations are expected to increase the number of workers so business owners have to review what makes an employee eligible and review to how pay them accordingly with the increased time.
Employment regulations is something else that business owners have to look out for since their is a shift in the minimum wage requirements. Since this is a trend that many state and local governments are doing the “hiring procedures and employment applications will need to be revised for employers in jurisdictions covered by "ban-the-box" laws that prohibit pre-employment inquiries into applicants' criminal histories” (Brooks, 2015). Another issue that business owners will have to look closely at due to regulation and law regulation is there cybersecurity. Since there has there has been many data breaches within companies like Target and Google there will be new legislation laws that address the issues of technology and security. To do this business have to “businesses have to begin analyzing the relationships between technology and their customers' personal data and to expect increasingly vigorous enforcement actions from agency regulators following violations of federal and state privacy laws” (Brooks, 2015).
Other changes that are on the horizon are changes to retirement and the change can really affect small businesses. “The U.S. Treasury will more broadly introduce its nonmandatory myRA workplace savings program, which allows employees to place deferred funds into a program that is similar to a Roth IRA” (Brooks, 2015). Businesses will have to take this into consideration if they already offer a retirement plan or plan on offering one in the future. Business would also have to take into consideration “additional incentives to small businesses to open retirement plans, provide lifetime income information on plan statements and require further disclosures around target-date funds included as plan investment options” (Brooks, 2015).
No matter what type of business an owner is running whether it be a restaurant or a doctor’s office they have to know the rules governing workplace safety. “Creating a safe work environment is critical to the success of your business, and is one of the best ways to retain staff and maximise productivity” (Green, 2015). Business owners have a responsibility to their employees to make sure that they work in a safe and harm free environment. Business owners have to know workplace health and safety laws to avoid unnecessary costs and damage to your business caused by workplace injury and illness. It will give their business a strong foundation to achieve long-term success.
Business who should check insurance provider to implement all state and federal safety regulations.Businesses have to make sure that they get an annual inspection on their workplace and to know all of their legal obligations.Businesses such as restaurants and daycare centers have to stay up to date latest health regulations. These issue may seem minor but when left unchecked they can cause bigger problems and repercussions. Complying with these duties can prevent you from being prosecuted and fined, and help you to retain skilled staff.
Liability issues more prevalent for sole proprietors because the owner is personally liable for claims against the business. “Unlike an LLC or corporation, if a sole proprietorship loses a lawsuit or otherwise finds itself in debt, not only will the business be liable for the debt, but the owner/sole proprietor will be as well” (Pakroo, 2015). Most claims and lawsuits that are brought up against a sole proprietor is one that has to deal with a contract or an agreement. There are many laws and regulations controlling safety, land use, business, employment, and other matters that business owners must abide by and ignorance of them is no excuse.
If business owners do not pay attention to regulations and laws governing regarding their business, then they might find themselves on the receiving end of a citation or lawsuit. It could be for simple things such as parking too many cars on the street, having an unsafe workplace, or causing an environmental disaster. They have to have a thorough understanding of the laws that apply to them, especially if they are in a heavily regulated industry such as manufacturing, food preparation, or professional services. Businesses owners have to make sure that they or any of their employers are committing any property crimes such as theft, fraud, and arson; and with antitrust laws that prohibit forming monopolies.
If a business owner has a product, service or an employee or agent harm a customer or member of the public, then they might be liable for damages. Business owners should meet with their insurance company to evaluate their exposure and arrange for the appropriate insurance coverage. They should also inquire about product and premises liability insurance and director’s and officer’s liability insurance.
When business owners or their employees or agents act unethically they can damage their business even if they do not break the law. When the public believes that a business discriminates against their customers or employees, try to skirt environmental laws, don’t honor contests the company holds or act in other inappropriate ways, individuals might stop patronizing the business or groups might organize boycotts. Some unethical behavior is also illegal, such as bait-and-switch advertising, sexual harassment, age, sex or racial discrimination, and intimidation of workers who want to organize a union. If a business owner breaks their word or a handshake agreement with one vendor or client, word can spread in the marketplace, making it more difficult to operate. Business owners show creating a detailed company policy and procedures guide and distributing it to each employee, this will help to avoid many legal and ethical problems.
Business owners have to take into account their employees and how they treat the. .The working environment of an organization is controlled in part by its corporate culture, and has a direct impact on its business performance. Many employees a majority of their day in the office so it is important that they enjoy their workplace and they see the potential to grow. “A work environment that promotes high productivity and rejects unethical behavior will have a positive influence on the public’s perception of the business” (Rose, 2014). Conversely, the public’s view of your company also affects the working environment and the performance of your employees.
In a very vicious and cut-throat marketplace means that the best performing businesses will be those who are able to connect with their customers on a personal level. Consumers are powerfully influenced by the way they perceive your corporate image.Consumers can tell, and will generally disapprove, when employees are not treated properly. A working environment which upholds high standards of ethical behavior and focuses on the customer’s needs is a good step in the right direction. Business owners should use honesty and integrity in all corporate activities can improve relations with investors and stockholders.The corporate culture of a business should reflect in a positive way how the company interacts and does business with their customers, suppliers, partners, and others.
Business owners face many issue when they take on the responsibility of operating a business. They duties and responsibilities that they not only have to adhere to their customers but also their employees. There are many legal and ethical standards that business owners have to govern themselves by and it can be overwhelming but being ignorant to these issues are not an option. They have to make sure that they are following the law as well as acting ethically to create a strong foundation for their business.

Works Cited
Brooks, Chad. "10 Regulatory Changes That Could Affect Your Business This Year." Business News Daily. 15 Jan. 2015. Web. 4 Oct. 2015.
Greene, James. "Workplace Health and Safety (WHS)." Workplace Health and Safety (WHS). 5 Jan. 2015. Web. 4 Oct. 2015.
Pakroo, Peri. "Liability Concerns for Sole Proprietors | Nolo.com." Nolo.com. 1 June 2015. Web. 4 Oct. 2015.
Rose, Ingrid. "The Work Environment Affects Your Company's Public Image." The Work Environment Affects Your Company's Public Image. 3 Feb. 2015. Web. 4 Oct. 2015.