Class Rreflection 1

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ACC 150
THE LEGAL ENVIRONMENT OF BUSINESS

With Doreen Smith, Esquire

Chapter 3

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BUSINESS ETHICS

  • Ethics
  • A branch of philosophy dealing with values that relate to the nature of human conduct and values associated with that conduct.
  • Business Ethics
  • Balancing the goal of profits with values of individuals and society.

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LAW AND ETHICS

  • Should our moral standards be derived from the law? That is, what is legal is automatically ethical.
  • Positive law
  • Law enacted by governmental authority
  • Absent illegality, each behavior would be ethical.

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UNIVERSAL STANDARDS FOR
BUSINESS ETHICS

  • Natural Law
  • A system of principles to guide human conduct independent of, and sometimes contrary to, enacted law and discovered by man’s rational intelligence.
  • Higher standards exist that may run contrary to codified law.
  • Civil Disobedience
  • When natural law proponents violate positive law.
  • Example
  • Slavery was legal in the United States but violated natural law. Acts taken against slavery would be considered natural law.

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NEED FOR ETHICS IN BUSINESS

Trust

Reliance on promises by a business is needed for capitalism to succeed

Reputation

A bad reputation impacts profits

Avoid regulations

By voluntarily instituting ethical procedures, the entity may avoid regulations that will impact the growth of the industry.

Example: Regulations on banks due to the mortgage crisis.

ETHICAL VALUES

  • Integrity and Truthfulness.
  • Promise-Keeping.
  • Loyalty: Avoiding Conflicts of Interest.
  • Fairness.
  • Doing No Harm
  • Primum non nocere-”Above all, do no harm”
  • Maintaining Confidentiality.

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Chapter 3

MODELS TO RESOLVE ETHICAL DILEMMAS

  • Blanchard and Peale Test.
  • Is it legal?
  • Is it balanced?
  • How does it make me feel?
  • Front-Page-of-the-Newspaper Test.
  • Would I want my decision published? What if your spouse, parents, children, or friends read in the news about a business decision?

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Chapter 3

MODELS TO RESOLVE ETHICAL DILEMMAS

  • Stakeholders
  • Those who have a stake or interest in a company or business
  • Examples
  • Employees, shareholders, the community
  • Stakeholder Analysis
  • When corporate executives view ethical dilemmas from different perspectives and measures the impact of a decision on various groups.

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MODELS TO RESOLVE ETHICAL DILEMMAS

Laura Nash Test.

  • Requires examination from all perspectives.

Sample Questions :

  • Have you defined the problem accurately?,
  • How did this situation occur in the first place?
  • Whom could your decision or action injure?
  • Can you discuss your decision with the affected parties?

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