Solving Business Problems and Scenarios - Ford Pinto Car Model - Essay Example

CASE STUDY Location Word count (2,153) Case Study Solving Business problems and scenarios in the corporate world require appropriate laws. Case laws can be defined as a group of rulings that are existent and have managed to make new interpretations of the law hence can be quoted as precedent. In most states, the word is understood as any set of rules on law that are steered by previous court rulings (Collins 2010, p. 13). An example is the ruling of a court regarding any business problem can arise from the previous ruling of a superior court. However, court proceedings that do not end with written decisions in a court record cannot form a precedent for forthcoming court decisions. The major problem that arises from implementing rulings that enforce business ethics is that laws are always retrospective in nature. This means that no law will solve a problem that is not someway provided for in that law, and correspondingly, most business problems are not crimes till they have been recognized and a rule has been applied against them (Collins 2010, p. 15). Another problem seen in laws applying to business scenarios is that such laws tend to create a negative portrayal of the relationship between ethics and law. Common law can decree some key precedents at the time when dealing with business problems that are ethical, but then again if business ethics depend only in the compliance of legal statutes that is combined with common law, then ethics will be weakened in force (Collins 2010, p. 18). Due to the fact that the rulings in common laws are centered in precedent, It is quite possible that a certain company can figure out how to execute an unprincipled action that is flawlessly legal within the defined scopes of the law up to that particular point. Additionally, if it appears that there is no law which bans that act, then it is still legal (Collins 2010, p. 23). When the corporate laws focus on ethics as identical with conforming to the law, then the companies will not be barred from executing any act until the act is forbidden in either common law or official statute. An example that entails the relationship between law and business problems is the Ford Pinto case. The case involved a Ford pinto car model. The chief designer, Ford, in making the car, created a model that would statistically cause 180 fewer accidents per year (Collins 2010, p. 25). However, this alternative model would cost an extra $11 per model. Ford then used a cost benefit analysis in compliance with the common law and previous business ethics cases to decide whether or not to implement the different car model design. The cost benefit analysis was initially formulated to be used in issues relating to single accidents but in this circumstance, Ford was implementing it to cover a whole line of a particular. This was found to be legal due to the fact that it was used in precedents and previous cases. Therefore, with the statistics and cost benefit analysis in mind, Ford came to a conclusion not to implement the model car (Collins 2010, p. 27). This was because it would be more expensive in implementing such a design even if it meant reducing the number of future deaths. Ford decision was found to be very unethical but it still conformed to the law of that time (Collins 2010, p. 55). Viewing in a different perspective, if conforming to ethics was the primary focus of the day, Ford would have been held accountable for his action. The ruling could then be altered but Ford’s own specific instance of action and unethical behavior would remain unpublished. Thus, for the business cases to be more operative at heading towards a strong ethical practice, ethics should be separated from mere obeisance to the act (Collins 2010, p. 34). No level of business law will be adequate to ensure that there is ethical practice in business. Employment law is a broad term that encompasses the relationship between an employer and an employee (Collins 2010, p. 47). In most case scenarios, employees have been discriminated overtime hence the need for the government to come up with employment laws that regulate the relationship between the employees and other various groups such as the employer, government and trade unions. It is an important issue that needs to be analyzed carefully by any involved personnel. Employment laws cover the employer-employee relationships but exclude negotiation process which is covered by labor law. Employment law for human practice can be categorized into three sub-topics in any institutional framework. These categories include, hiring, management and firing processes. As a legal precaution, employers and employees should have the proper awareness of their rights so as to avoid any law suits or discrimination (Collins 2010, p. 43). Therefore, an organization should properly pay attention to its hiring, management and firing techniques for the wellbeing of everyone in the institution due to the fact that employment law revolve around these techniques. Hiring process within a company is an important aspect which should be done carefully to avoid future legal problems. The process should be as formal as possible whereby the applicants apply the job and then undergo an interview process in front of a senior management panel. In the hiring process, the company needs to be diverse in the selection and avoid biasness and corruption (Collins 2010, p. 44). Background checks on the applicants and testing also needs to be carried out to confirm that the applicants are legit. Hiring process should entail maximum co-operation among the senior managers in so as to ensure that a competent workforce is hired. Management process within a company is mainly carried out by the senior officers in the institution. The process needs to be carried out properly so as to prevent discrimination and over-exploitation of workers (Collins 2010, p. 44). The company can employ the use of Business Process Management. This is a technique which ensures that the operations are effective and run smoothly. This approach is important in trying to create a good working environment within the company. Profits, high levels of co-operation and lack of law suits are some of the benefits that come along with proper management of the organization (Collins 2010, p. 48). Therefore, employment laws should properly be applied in such a process whereby the workers and employers become legally aware of their rights hence promoting a favorable working environment. The third process is the firing process. Firing is a complex matter which if handled carelessly; may lead to conflicts between the employer and employee. For example, any company which intends to fire an incompetent employee must first lay down the supporting claims of incompetence behavior in that employee so as to avoid biasness and unfairness (Collins 2010, p. 54). If the matter gets out of hand, the fired employee might even go ahead to sue the company on the grounds of impartiality and discrimination. Law suits would then lead to excessive loss of capital by the company and the other parties involved. Employment law in promoting human practice is evidence in the hiring process causing the employees to gain strength and confidence in defending themselves because they know their own rights (Collins 2010, p. 57). A good company needs to develop the skills in handling terminations and firings through proper and legal methods. Even with the three processes, many people still wonder what employment law is. Lack of awareness is a major setback in the world hence leaving many people unaware of the importance of employment law (Collins 2010, p. 33). Workers and employers in any company should know about the employment law and conform to the rules contained in the laws by constantly practicing them. In order to ensure this, the company should set up educational programs that teach on employment law. With all the parties involved being aware, a great deal of cooperation and hard work is achieved. In the United States of America, several acts have been passed in accordance to employment law. Pregnancy Discrimination Act is the first act which was introduced in 1978. The Act stated that pregnant women should not be discriminated due to the fact that they are pregnant (Collins 2010, p. 63). Childbirth is a blessing in the society therefore presenting no justifiable reason why a pregnant woman should be discriminated either directly or indirectly. The act further prevents any form of discrimination in the workplace because of other associated medical conditions. An example of a violation to the Act is a company rule that disallows hiring of pregnant women (Collins 2010, p. 69). This act offers to protect any lady who is seeking employment during pregnancy or after pregnancy. The second act is the Americans with Disabilities Act which came into law on 26th July 1990. This Act is considered as the largest civil rights legislation from the time when Civil Rights Acts was introduced in 1964. The act entails that a company or employer should accommodate people with disabilities (Collins 2010, p. 72). The challenged in the society deserve equal chances and opportunities as anyone else. Any attempt not to hire a disabled individual is a direct violation of the act. More to this is that providers of telecommunications, public accommodation and transportation also need to accommodate disabled people in the society. Due to this act, any person with disability is offered protection against any discrimination based on the disadvantaged physical attributes (Collins 2010, p. 85). Another important Act is the Age Discrimination in Employment Act which was enacted in 1967. In the current market trends, many organizations prefer hiring a young workforce rather than an older one. This is due to the belief that the elderly are weak and incompetent when it comes to implementing a company’s strategies (Collins 2010, p. 77). Age Discrimination in Employment Act focuses on eliminating such discrepancies. Therefore, a company should not hire new workers while using age as the ranking criteria on the applicants. The act provides protection for the elderly people who may be seeking employment regardless of their old age. On a further note, Family and Medical leave Act is another act which offers a great significance in the company framework. The act was enacted on February, 1993 having being passed through congress. In a layman’s language, the act simply presents an opportunity for the employees to have an unpaid leave of absence when there are any medical emergencies. This act is estimated to cover about half of the whole nation’s labor force (Collins 2010, p. 70). The act is mostly applicable to firms that have more than 50 workers as well as the federal states and local government hence becoming one of the mostly applied acts in United States. The act allows employees to take leaves for up to a period of twelve weeks without losing their jobs, pay rate or benefits. Therefore, the act offers protection to the employees that have medical problems, childbirth and adoption (Collins 2010, p. 10). The last act is the Title seven of the Civil Rights Act of 1964. This act was designed purposefully to eradicate job discrimination within the companies. Discrimination is a major problem in the working arena thus may cause a lot of problems if not properly dealt with. Discrimination is based according to gender, race color sexual orientation, nationality and religion. Diversity is a positive thing in any company; however, discrimination at times tends to arise due to having a diverse workforce (Collins 2010, p. 89). Measures should be taken to avoid all types of discrimination in the workforce. It is due to these reasons that this act offers a significant protection to the employees against discrimination by the employers. As it has been seen, employment laws provide protection and opportunities for the employees hence eliminating cases of discrimination, underpayment, over exploitation and others. People seeking employment should find the protection that bests suits them. Any employee who has received discrimination needs to know that there is compensation or coverage for that behavior (Collins 2010, p. 87). Employees also need to be legally aware of their rights and deal with any form of misconduct in the company legally. Employment laws offer protection to the employees and to the minority and disadvantaged in the society. With much said employment laws have helped increase the smooth running of a company’s operation hence the need for the laws to be effectively implemented (Collins 2010, p. 100). Thus, In reference to the case involving Denis, Raj and Fred, I would advise Raj to take up legal action and sue Sarah on ethical basis. Having a good three years excellent work record is evidence enough that Raj should be pardoned for being late. Sarah does not have enough legal proof that Raj was on the wrong leading him to lose his job. Even in a court proceeding, it is very likely that Raj will win the case based on stare decision (Collins 2010, p. 23). Denis on the hand should go forward and apologize to Glen, the managing director of the firm. In addition to this, Dennis should also apply to fill up the Portsmouth Office in that three month period (Collins 2010, p. 85). This is due to the fact that He has more experience than anyone else in that firm. This is an appropriate action because Common laws have previously favored the employees with more experience in a particular firm. Bibliography Collins, H, Employment Law, (1st edn, Oxford University Press 2010), London Read More