There are multiple legal and ethical matters you need to consider when starting your business. A firm check and balance of legal formalities will lay a strong foundation for your business. On the other hand, violations in any legal matter may doom your business. Therefore, it is of utmost importance to pay close attention to legal matters before they become an issue.
Highlighted below are some of the important legal and ethical issues you must pay heed to, when building the foundation of your business.
Not Registering the Name and Structure of Your Business
This is the first and the most important legal issue that can lead to the downfall of your business within seconds. By not getting your company name registered, you are at the verge of sinking your business. This is because, chances are you’ll later find another company with the same name already registered. This could become the ‘sole reason’ for your business’ downfall as all your local and foreign clients will retreat from investing in your business, causing you millions of loss.
Similarly, not registering the business structure in the start of your business is another fatal mistake at your end. Without registration, you are a nobody in the field of business.
Discrimination among Employees
When it comes to business ethics, there are issues such as discrimination based on gender, caste, and color. This can lead to complex and serious legal issues if an employee sues you for not promoting him/her due to racial discrimination. These matters are so sensitive that your whole business can get sunk and blacklisted in a day.
This quotation by the former Associate Justice of US Supreme Court, Potter Stewart, is self-explanatory. Using your authority for achieving false objectives can surely become a reason of your business’s downfall.
Breach of Confidentiality
Confidentiality is the most important parameter between companies and businesses, when entering into a deal. Both companies have confidential information of the other. That’s why there are agreements signed, in which both the parties promise to keep all information confidential. However, many businesses may intentionally or unintentionally breach the confidentiality agreement. This can pose a deadly threat to their business stability. Such businesses are legally sued and brought to court for justice. Thus, this marks the end of their business reputation and existence.
Ignoring Security Concerns
Employees are the responsibility of their company when it comes to security concerns. If an employee feels insecure at his/her workplace and despite his/ her constant addressing of the issue, the company fails to take a stand, there can be serious problems for the business. The employee can not only file a case against authorities but this can blacklist your company’s name as well.
The above legal issues are most deadly and can be deadly to the growth and performance of your business. Therefore, you must address them before they consume your years of effort.