Question

As you know, there are many rules and regulations pertaining to ethics. But these rules are made at all levels of authority and management. Some are state or county rules, some are company rules. What type of problems does this cause for trying to understand them all?

Answer 1

There are rules and regulations that only take part with a certain level of the process. They can be federal laws and regulations, state laws and regulations and even laws that exist in a company. Not having a centralized body of laws has a lot of challenges for everybody to be able to understand them and conform to them. There is a larger chance of non-compliance or default behaviour when such cases are considered/ therefore, a centralized body of rules and regulations is important. A business needs to know the rules it needs to conform to, in order to operate in the market they are doing business in. Similarly, this concept changes when they are working as a globalized entity which has to conform to the federal laws of the country in order to remain on the right side of the ethics committee and the board that is concerned with their industry. There are many challenges that are presented which means that in order to conform to all the changes the company needs to be able to accommodate all the factors which would be a little hard to do especially for sustaining their processes for a longer time. This affects the performance, brand name and value that their customers have for them and therefore, presents another need to have a centralized system of rules.