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Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

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Page 1: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials Of Business Law

Chapter 2

Ethics And The Law

McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Page 2: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials of Business Law Chapter 2-2

Ethics In Our World

Accounting fraud Sarbanes-Oxley

• Places a greater onus on upper management to monitor the financial dealings of their firms

Environmental pollution

Technology Stem cell Cloning

Global business Cultural differences

Page 3: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials of Business Law Chapter 2-3

Ethics, Morals, And Values

Ethics Philosophical approach to right and wrong

Morals Behaviors judged by society

Values Standards considered worthwhile

Page 4: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials of Business Law Chapter 2-4

Sources Of Group And Individual Values

Religions

Traditions

Customs

Culture Values of a nation or ethnic group

Subculture Values within a corporation or department

Page 5: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials of Business Law Chapter 2-5

Relationship Between Law And Ethics

Government Impose legal mandates Precise

Ethics Multifaceted Form foundation of many legislative decisions

Page 6: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials of Business Law Chapter 2-6

Responses To Ethical Issues

Business firms Corporate responsibility

• Donate equipment and personnel to local school• Construct a park

Code of ethics• Principles of behavior for personnel in various

situations

Page 7: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials of Business Law Chapter 2-7

Code Of Ethics

Honesty

Adherence to the law

Product safety and quality

Worker health and safety

Conflicts of interest

Employment practices

Marketing practices

Financial reporting

Supplier relationships

Pricing, billing, and contracting

Trading in securities

Payments to obtain business

Page 8: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials of Business Law Chapter 2-8

Responses To Ethical Issues

Educational institutions Courses Workshops Programs

Trade and professional associations Create guidelines

Page 9: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials of Business Law Chapter 2-9

Responses To Ethical Issues

Government Federal Sentencing Guidelines

• Hold companies to higher standards

U.S. Office of Government Ethics• Conflicting financial interests• Misuse of position• Financial disclosure• Impartiality in performing official duties

Foreign Corrupt Practices Act• Prohibits American firms from bribing foreign officials

Page 10: Essentials Of Business Law Chapter 2 Ethics And The Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved

Essentials of Business Law Chapter 2-10

Ensure Ethical Practices

Whistleblowing Revealing illegal or unethical behavior Often causes ethical dilemma

Integrating ethics into business and government Watchdog groups


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