The Legal Environment of Business

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ETHICS AND LAW

• The Legal Environment of Business
• Unit 1
• Ms. Nicks

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LEARNING OBJECTIVES

• Differentiate among the ways in which ethical
  decisions can be made.
• Define law and explain why laws are needed.
• Explain how and why ethics and law do not always
  coincide.
• Distinguish among the five major sources of
  todays law.

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HOW ARE ETHICAL DECISIONS MADE?

• Ethics was first introduced into law in ancient
  times in the form of religion to help society as
  a whole.

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WHAT IS THE DIFFERENCE IN MORALS ETHICS?

• Morals involve the values that govern a societys
  attitude toward right and wrong.

• Ethics develops the means for determining what
  those values should be.

Ethics (opinions/gut feeling) gt Values (the
worth of something) gt Morals (distinguishing
right from wrong)
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DO OPINIONS FEELINGS PLAY A FACTOR IN ETHICS?

• Example 1
• A group of Laotian immigrants (Loas near
  Thailand, China, Vietnam) immigrate to the USA
  move into a building near Central Park. They
  believe in their culture that parks are common
  areas for everyone to use so they cut down trees
  and planted gardens for everyone to use. City
  officials enforced them to stop and to pay
  damages. To the Laotians the land was common
  property to be used as a resource as was the
  custom in their country. To the city officials
  the land was city property.

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DO OPINIONS FEELINGS PLAY A FACTOR IN ETHICS?
(ct.d)

• Example 2
• Nathan comes from a poor family, while Erins
  family is wealthy. Nathan believes that Erin has
  more money than she needs. When she leaves her
  purse unattended at school Nathan steals her
  billfold. Nathan defends himself by saying he
  feels he deserves more money than Erin who can
  always get more from her parents.

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WHAT IS THE GREATEST GOOD?

• Example 3
• Elaine knows that 10 of her 20 classmates
  cheated on their last law exam. The teacher
  mistakenly identifies an innocent student as the
  only one who cheated. Elaine decides that the
  greatest good for the greatest number would be
  for her to keep silent and not identify the 10
  students. She thus sacrifices the one student for
  the many.

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WHAT IS THE GOLDEN RULE?

• Do unto others as you would have them do unto
  you.

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THE GOLDEN RULE (ct.d)

• Example 4
• Steve is the star pitcher on Franklin High
  Schools varsity baseball team. However, he is
  having a bad outing against the Vikings of St.
  Josephs High School. Frustrated, Steve throws
  two pitches at St. Josephs best batter. When the
  umpire rejects Steve from the game the Franklin
  coach does not argue. Instead, he tells Steve,
  You were wrong to throw those pitches at that
  kid. If its right for you to throw at their
  batters than it would be right for their pitchers
  to throw at our batters. Steven then realizes he
  would not want to be a pitchers target either.

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THE GOLDEN RULE (ct.d)

• Example 5
• When law tests are handed out in Mrs. Martins
  class, Max accidentally receives two copies of
  the exam. He fills out one and returns it, but
  keeps the other. After class, he gives the copy
  to his friend, James, who will have a chance to
  look at it before his afternoon law test. Max
  justifies his conduct by saying he would want
  James to give him the test if James had been the
  one to receive the extra copy.

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THE GOLDEN RULE (ct.d)

• There are 2 reasons why this rule is held in
  such high regard
• 1) It respects the dignity and worth of
  individuals.
• 2) If followed properly it can be applied in all
  situations.

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THE GOLDEN RULE (ct.d)

• Example 6
• Bill resents the fact that his parents keep a
  very close watch on all his activities. He feels
  that they think he is a child, although he
  believes he is an adult. One day, after his
  parents have grounded him for coming home late,
  Bill declares angrily, You treat me like a
  child. Youre always making decisions for me. Im
  grown up enough to be responsible for myself.

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THE GOLDEN RULE (ct.d)

• Example 7
• Haley and her boyfriend Kevin had just had a
  serious argument. To make Kevin jealous she
  promises Sam she will go to the prom with him
  even though she has no intentions of doing so.
  When Kevin finds out that Haley is going to prom
  with Sam the former couple makes up. Haley then
  breaks her date with Sam.

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THE POINT OF THE GOLDEN RULE

• Once you promise something keep it!