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Ethics and the Legal Environment Essay

The ethical issues in this case, revolve around corruption. All over the world, there have been a number of countries where corruption is rampant. In this situation, the decision makers are the management of the Horizon Trading Company. It is unethical for them to evade paying taxes to the government.

The stakeholders are the government department of tax collection and the community who are the one who encourage corruption. Receiving bribe is unethical as it promotes corruption which is a factor to economic retardation. It is also unethical for the Russian government to fix very high rates on taxes as this make business in the area unhealthy, the officials at the Horizon Trading Company. (Amarante,S et al, 1996)

Bribery in this case happens to be an ethical issue because; we understand that people in this nation are involved in corruption deals so that they can evade paying the taxes. It is through the collection of tax that the government gets the tax. Even though it is very high failure to pay the taxes means that the government will not accomplish most of its set goals and a lot of citizens will suffer due to failed missions.

In addition, some of the people who

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fail to pay the taxes will be caught and they end up bribing those that are responsible for taking actions thereby promoting corruption. Corruption is considered an unacceptable action all over the world and therefore in this situation it is unethical. (Amarante,S et al, 1996)

The community stakeholder’s interest on tax evasion is to make profit. The community claims that the government has very high rates of taxes and that they are unhealthy for the business. They claim that so that they can keep their business, they have to evade the taxes which are very high for them. Their interest may therefore be referred to as survival. The community bribes so that they may be allowed to evade the taxes and have some returns in their business. (Amarante,S et al, 1996)

The community’s responsibility is to provide the revenue to the government through paying of taxes. They should fight for tax reduction and therefore pay taxes in the country rather than evading. They should also avoid bribery to the officials and this way they will be able to eliminate corruption.

The corporation should stop bribing the officials and try to negotiate with the government so that they can lower the taxes and this way, they would pay all the taxes. In addition, this would discourage corruption in the state and thus the government would benefit. This would prevent few individual in the government from benefiting with the state wealth. (Amarante,S et al, 1996)

In conclusion, it is unethical to be corrupt or to justify any corruption deals. This is the case that is happening in this situation in Russian. Horizon Trading Company should not justify its corruption deals. It should not be unethical simply because the state and the community are unethical. The company should try and fight this character out from this community and this government. It can only do this by first fighting for the correct rates in taxes, and then fighting bribery which encourages corruption. The company should not train its new employees on corruption or introduce them to corruption deals in Russia rather they should give them ideas that would help them fight it.


Amarante,S et al. (1996, September 27). Analyzing Values Cases. Retrieved November 2, 2008, from http://roger.babson.edu/ethics/horizonc.htm

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