Ethical Issues in Business | in Setting a New Business

When starting a business, there are numerous ethical and legal issues that must be considered by a business owner. Taking legal and ethical issues into account in the beginning of the businesses doesn’t only ensure quick progress but it also provides business with long-term benefits.

Ethical Issues in Business
Ethical Issues in Business

Ethical Issues in Setting a New Business

But in this fast paced world o today, startup companies concentrate more on their clientele instead of making policies for their company. This has been one of the main flaws, which has greatly affected the performance and progress of new-born businesses. There are, however, some other legal issues a well that businesses must try to avoid. These are:

  1. Not Getting Business Licenses
  2. Wrong Selection of Employees
  3. Not Securing Business Trademarks
  4. Not Defining Company’s Policies Clearly
Ethical Issues in Business
Ethical Issues in Business

Not Getting Business Licenses

Business licenses are the permit from the government of the country. Without getting a legal work permit, there is no authenticity of the business. So, being caught up in challenges of a new business, ignoring this legal document can halt the business activities permanently. We must consider the collection of business license as the first priority.

Wrong Selection of Employees

While engage in handling other tasks of the new business, we often take lightly the employee selection process. However, this is the most crucial step in any business or organization. The wrong selection of employee can pose serious threats to the company.

These employees are the business’s ambassador everywhere. Unethical employees can defame the business within seconds among the customers and clients. They can create legal issues for the company too. Moreover, employees are like the building blocks of a business. Thus, selection of wrong and incompetent blocks can weaken he foundation of the business.

Not Securing Business Trademarks

Trademarks are the representation of the business among customers and clientele. Start-up businesses don’t consider the protection of trademarks an important factor. This can lead to an important legal issue of trademark infringement.

This problem can literally shake the foundation of the business if we do not get the business’ trademark copyrighted. Not just this, it may affect the sales and status the market as well. Also, it may require the investment of thousands of dollar to get the trademark back.

Not Defining Company’s Policies Clearly

Many a times, start-up businesses ignore to frame a set of policies for their company. Even if they have a proper book of policies, they don’t clearly define and remain them to their employees. This may seem trivial but not knowing a company’s policies can lead to unethical and illegal actions by employees such as using restricted sites from workplace.

The hackers can extract company’s confidential data as soon as an employee runs a particular site. This cannot only lead to the downfall of the business but can cause legal problems for the business. Today many start-up businesses tend to ignore these issues thinking they’ll deal with them later once they have fully established it.

However with the passage of time, these matters only get more and more worse, affecting the whole organization. Therefore, these issues must be immediately addressed.