Overall Course Summative Assessment (What We Refer To As Mod

Overall Course Summative Assessment (What we refer to as Module 07) Competencies

Review the situation and conduct scholarly research into the laws and regulations presented in the course content. Create an Action Plan Recommendation Report in Microsoft Word (minimum of three pages) to the CEO of Hanson Enterprises addressing: What legal (consider federal and international laws) and ethical (consider specific ethical theories) issues do you see in this scenario? Based on the facts, what laws and/or regulations (consider federal and international laws) would address this scenario as it relates to employment law? Explain if it is possible to sue for breach of contract, or if there are any contract remedies available. What are the consequences if the corporate social responsibility (CSR) is not addressed? What do you think is the best legal and ethical course of action for Hanson Enterprises to take, and why is it in the best interest of the company? Use at least three credible sources. These should be cited and in APA format.

Paper For Above instruction

In the increasingly globalized business environment, multinational corporations like Hanson Enterprises face complex legal and ethical challenges, especially in international operations. The scenario presented exposes significant issues relating to employment law violations, unethical labor practices, breaches of contractual obligations, and the neglect of corporate social responsibility (CSR). Addressing these problems comprehensively requires understanding both the legal frameworks—federal and international—and the ethical principles guiding corporate conduct.

Legal and Ethical Issues in the Scenario

At the heart of this scenario are several violations of employment law. Employees are working seven days a week with no breaks, suggesting violations of labor laws that mandate rest periods and reasonable work hours. In the United States, the Fair Labor Standards Act (FLSA) stipulates minimum wage, overtime pay, and work hours, and breaches can result in legal action (U.S. Department of Labor, 2021). Internationally, the International Labour Organization (ILO) stipulates standards for fair wages, working hours, and safe working conditions, which are not being met here (ILO, 2023).

Moreover, the failure to provide promised wages, benefits, and community investments constitutes a breach of contractual obligations and could be grounds for legal action under U.S. contract law principles. The company explicitly promised minimum wages and benefits; failure to deliver these could be challenged through breach of contract claims, seeking remedies such as damages or specific performance. International contracts may also fall under jurisdictional disputes, but the core breach remains wrongful employment practices.

From an ethical perspective, the scenario raises questions about corporate responsibility and the application of ethical theories such as Kantian ethics, which emphasizes duty and respect for persons, and utilitarianism, which advocates for actions that maximize overall well-being (Crane & Matten, 2016). Hanson Enterprises’ disregard for employee welfare and community development violates these ethical standards, reflecting a lack of respect for workers’ rights and community integrity.

Legal and Regulatory Frameworks Addressing Employment Issues

U.S. employment law, particularly the FLSA, protects workers from exploitation by establishing fair wages, limits on working hours, and mandated breaks (U.S. Department of Labor, 2021). Additionally, the Occupational Safety and Health Administration (OSHA) mandates safety standards in workplaces, which are apparently ignored here evidenced by safety hazards visible to the team (OSHA, 2023). Internationally, the ILO’s conventions—such as Convention No. 87 on freedom of association and Convention No. 98 on the Right to Organize—protect workers’ rights to organize and bargain collectively (ILO, 2023). Breaching these fundamental rights exposes the company to sanctions and reputational damage.

In terms of breach of contract, U.S. law permits employees or partners to sue for breach if contractual promises—such as wages, benefits, and community investments—are not fulfilled. Remedies may include monetary damages, reinstatement, or injunctions requiring the company to comply with contractual obligations. International contracts may invoke arbitration or jurisdiction clauses, but the core issue remains enforcement of contractual promises.

Failure to address CSR implications can lead to severe consequences such as reputational damage, loss of consumer trust, legal sanctions, and operational disruptions. Companies increasingly face pressure from consumers and regulators to uphold ethical standards (Crane & Matten, 2016). Neglecting CSR not only harms stakeholders but also jeopardizes long-term profitability and sustainable growth.

Recommended Legal and Ethical Course of Action

Hanson Enterprises must immediately cease unethical practices and rectify violations: ensure wages and benefits are paid as promised, improve workplace safety, and honor commitments to community development. Legally, the company should conduct an internal audit, cooperate with regulatory agencies, and engage in transparent dialogue with affected employees and community stakeholders. Ethically, the company should adopt a stakeholder-oriented approach, consistent with Carroll’s Pyramid of CSR, which prioritizes economic, legal, ethical, and philanthropic responsibilities (Carroll, 1999).

Increased compliance efforts, such as implementing rigorous HR policies aligned with international standards, are essential. The company should also foster a culture of ethics and accountability, emphasizing respect for human rights, fair treatment, and sustainable practices. Such actions demonstrate a genuine commitment to ethical principles and can help mitigate legal risks and reputational damage. Engaging third-party auditors and certifying compliance with recognized standards like SA8000 or ISO 26000 can further reinforce ethical governance (ISO, 2021).

By taking proactive steps, Hanson Enterprises not only complies with legal mandates but also restores stakeholder trust and maintains business sustainability. Ethical leadership rooted in respect for workers’ rights and community welfare will serve in the long-term interest of the corporation, protecting its reputation and ensuring compliance with international human rights standards.

References

  • Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
  • International Labour Organization (ILO). (2023). Labour standards. https://www.ilo.org/global/standards/lang--en/index.htm
  • Occupational Safety and Health Administration (OSHA). (2023). Workplace safety and health. https://www.osha.gov
  • U.S. Department of Labor. (2021). Fair Labor Standards Act (FLSA). https://www.dol.gov/agencies/whd/flsa
  • United Nations Global Compact. (2019). Corporate sustainability and social responsibility. https://www.unglobalcompact.org
  • Carroll, A. B. (1999). Corporate social responsibility: Evolution of a definitional construct. Business & Society, 38(3), 268–295.
  • ISO. (2021). ISO 26000: Guidance on social responsibility. International Organization for Standardization.
  • World Business Council for Sustainable Development (WBCSD). (2020). Corporate social responsibility practices. https://www.wbcsd.org
  • Fox, T., Ward, H., & Howard, D. (2002). Public sector roles in strengthening corporate social responsibility: A baseline study. World Bank.
  • Bernstein, M. H. (2019). Business ethics and international law. Journal of Business Ethics, 152, 619–634.

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