The owners of the small business get angry because government regulations, and paper work related to small firms are considered as a growing problem. Earlier, the small firms are exempted from the federal regulations, nowadays, the firms get tend to be regulated with the higher formal formalities which are complex in nature. It consumes more time, and costly in nature.
The some problems which are involved in handling government regulations, and paper work are as follows:
1. The initial problem is related with the regulations, the persons are not able to understand the regulations issued by the higher authorities. The owners get confused with the large number of issued regulations which are very restrictive in nature.
2. The next problem is related with the paperwork, which is involved in handling, and preparing of the reports. It should get comply with the government regulations, and to maintain the records which are required to satisfy the regulators. The paperwork is more, and owners have to submit more reports, and data to the government in a month.
3. The third problem is related with the difficulty, and the cost which get comply with the regulations. The cost related to this is more from the administrative expenses, which bring out the real operations in compliance, and the regulations are considered as more expensive in nature.
4. The last problem is related with the regulations, it discourage the small firms in order to hire more workers. The employment of workers approach the sets of cutoffs by the federal laws, and regulations.
Business ethics are the standards used to judge whether a business decision is right or wrong. Businesses are expected to deal ethically with employees, customers, competitors and others.
Ethical behavior is expected in decisions that relates instances of bribery, collusion, tax evasion, misleading advertisement as well as in personal conduct with regards to loyalty, confidentiality, privacy, respect for others, being truthful.
In the following case, an employee working with a food grocery store chain is facing an ethical dilemma concerning disclosure of confidential information with his colleague.
Matt's appropriate ethical action should be to not disclose the information to Bob that he would probably be demoted back to assistant manager position. Even though Bobb is a close friend of Matt and they have working together for many years now, Matt should not reveal to Bobb any confidential information concerning company decisions concerning promotions or demotions.
The revealing of such information can be detrimental to the interest of the company because Bobb may not take the news well and may claim that he is being discriminated by the company. Bobb may even go as far as filing a legal suit against the company even before the company makes a formal announcement regarding his demotion. To avoid such complications, Matt should withhold from Bob the information concerning his demotion and wait for the company itself to make a formal announcement to Bob.
Socially responsible business practices refer to policies, decisions and actions that are undertaken by small businesses that serve the best interests of the society. Small businesses are expected to act in a socially responsible manner in dealing with employees, customers and the public and to consider all the stakeholders when making decisions.
Social responsibility practiced by firms take the form of consumerism, employee relations that include providing equal employee opportunity, environmental protection and community relations.
The clothing firm has implemented a unique program known as "Hannadown" whereby customers are invited to mail back outgrown clothing in good condition. The company donates the usable returned clothes to needy children and to nonprofit schools, charities and shelters.
From the view point of social responsibility, it can be said the firm practices have served the best interest of the society. The "Hannadown" program has received positive response and over the years has gained popularity among the customers. A large majority of returned clothes have found to be in good condition and they were promptly distributed to the needy.
The company is also known for its enlightened employee program and a leading magazine has honored the company for six consecutive years for providing flexible time to its employees. The "Hannadown" program is designed to improve community relations and the flextime helps in providing excellent working atmosphere for the employees.
Thus, it can be said that the company follows responsible business practices and takes great efforts to improve community and employee relations.