Introduction
The business world today is influenced by both actions by the government and those of society. Ethical and legal issues affecting organizations determine their ability to remain favorable to customers and profitable to investors. Consequently, it is necessary for organization management to address legal and ethical issues that emerge during the organization's existence. In this case study, we see an organization, Juuls Lab, which has legal and ethical issues that need to be addressed in order to guarantee success and effectiveness in existence. To remain competitive and favorable in the society, Juuls Lab must address several ethical and legal challenges that it faces at this moment.
Ethical and Legal Behavior
While moral and legal standards are essential to the proper functioning of a business organization, their meaning and applications are quite different as we have seen in the class. While legal standards are set up through governmental laws, including statutes and policies, ethical standards do not have a legal basis. Moral standards are primarily based on what humans consider to be right and wrong. On the other hand, legal measures are based on the law that is written and guide to everyone in society. Therefore while ethical behavior changes based on the society and determined by non-defined rules, proper behavior is highly rigid, requiring businesses to follow strictly. Also, while the consequences of negative moral behavior are subjective and determined by the society, unacceptable legal behavior results in dire stated implications from the government in the business that cuts across all in the community.
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The main legal issue associated with Juuls Labs is breaching the Tobacco Control Act of 2009 by advertising to teenagers. A legal issue refers to a legal question that has foundations in the law of a nation. The company has been accused of creating advertising and promotional messages that are directed to teenagers. As a legal issue, this problem is associated with the Tobacco Control Act of 2009, signed by Obama. Under this act, the FDA is given the authority to oversee the promotion of cigarettes and other products. Having categorized e-cigarettes as part of its jurisdiction, the FDA requires the proper follow up of law by manufacturers.
There are several ethical issues that have been associated with Juuls Labs in the case study. Ethical issues refer to principles that guide organizations on what is right and wrong based on moral values and standards held in esteem in an organization. Accordingly, the central moral issue, in this case, is Juul Lab advertising cigarettes. While e-cigarettes are an excellent alternative to regular types, they still cause harm to smokers that include health challenges. Consequently, promoting them even with the government allowing for advertising of e-cigarettes to eliminate the use of regular ones is moral. Secondly, targeting promotional messages to young adults is also wrong as it promotes smoking in society many adverse effects.
An Ethical Organization
There are several measures that could be taken to ensure that Juul’s Lab functions as an ethical organization. Operating ethically affects an organizations brand and identity and its ability to influence its environment positively. Consequently, measure to improve the ethical organization end up being vital to the company brand. First, to be ethical, an organization should meet all the legal obligations without the need for being coerced. As meeting moral commitments go beyond the legal requirements, the organization must first close all the legal questions in regard to the advertisement. Juuls Lab should consider stopping all types of advertising that may raise eyebrows from industry regulators to assure the confidence in the law.
Another measure that Juuls Lab should take to ensure it runs ethically is to ensure integrity and transparency in the running of programs. Transparency and integrity ensure that society does not feel threatened by the activities of an organization. Juuls Lab should make their activities open to the public and let people in the community have access to vital information such as their finances and targeting system for advertisement. Through these measures, the speculations about the company that has been going wild will be substantially reduced to build a positive public image.
Business Government and Society
The society and ordinary citizens have been vital in influencing the government's understanding and activities targeted towards Juuls Lab. A small percentage of underage consumers were the first to complain about Juul's advertisement saying that the company was promoting the e-cigarette device on teenagers. The complaints from the public drew the attention of the FDA and the government to move to scrutinize the organization’s advertising to assess whether there were messages intentionally targeting teenagers. The society has attempted and succeeded in controlling Juuls Lab by making it adhere to both legal and ethical standards.
Conclusion
James and Adam must address the legal and ethical issues that Juuls Lab is facing in the case. In term of legal issues, the Tobacco Control Act is the main challenge while advertising cigarettes and promoting to minors presents an ethical question. While unlike legal behavior that is written and objectively enforced by government agencies, ethical behavior is implied and unenforceable, organizations must adhere to the bot for survival. Members of the public often influence government to act towards addressing business issues in society. This trend can be seen in the members of the society, raising concerns about Juuls Lab advertising that is followed by government inquiry to establish the problem and develop an understanding to contain the company.