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The Law of Business must consider ethics and morality.

Ethics: guiding philosophy of a group,

societal values concerning right and wrong. Morals: principles of right and wrong measured by an individuals conscience. Ethics vary from society to society where as individual morals remain fairly constant.

BUSINESS ETHICS LAW OF BUSINESS ETHICS MORAL

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EGOISM CONSEQUENTIAL

UTILITIARISM
FEMINISM

ETHICAL THEORIES

NON-CONSEQUENTIAL PRINCIPLES

KANT, CATEGORIAL IMPERATIVE

RAWLS, VEIL OF IGNORANCE

Consequential and Non-consequential Principles.

Consequential: evaluate action by

examining the consequences produced by the action. Non-consequential: focus of the concept of duty rather than what is right or wrong.

Consequential Ethics.

Egoism: rightness determined by consequences

the act produces for person performing the action. Holds one will act in a manner which produces greatest balance of good over bad for oneself. Utilitarianism: rightness determined by consequences the act produces for ones group. Holds one should act in such a manner which will, over time, produce most good over bad for ones group. Feminism: emphasizes attention be paid to the effect of decisions on individuals. Focuses on character traits.

Non-Consequential Ethical Theories.

Kant and the Categorical Imperative: suggests

certain universal moral truths every person must follow in order to act morally and ethically. Imperative that one follow certain perfect truths. Rawls and the Veil of Ignorance: theory suggesting that rules of ethical behavior be created by persons who ignore their own characteristics and circumstances including gender, race, ethnicity, and/or religion.

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Other Theories:
Relativism: states that two people or two

societies may hold opposed ethical views to one another, and yet both may be correct. The Golden Rule: advises each person to do onto others as you would have others do onto you.

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Individual and business factors to consider when charting an ethical protocol:

Short and long term impact on of the

decision on society and the organization. Who will be affected and to what degree by the decision. Whether the decision and subsequent ethical protocol is compatible with the law.
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Factors considered when making a decision:

The obligations that arise from

organizational relationships. The ideals involved in any decisions that are made. The effects or consequences of alternative actions.
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Business is an Amoral Institution: originally held business to be amoral meaning they could not act morally or immorally as they were not natural persons. The Game Theory: operating a business is like playing a game. No longer practical as government now establish the rules (legal regulations) for business.

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Holds that businesses owe duties to society as society allows business to exist. Social Contract Theory considers:
The Changing Social Environment. Problems with Business Ethics: no fixed
The Human Factor. The Legal Aspect.

guidelines to follow and no formal code of ethics that a business should follow.

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Holds that businesses owe duties to society as society allows business to exist. Social Contract Theory considers:
The Changing Social Environment. Problems with Business Ethics: no fixed
The Human Factor. The Legal Aspect.

guidelines to follow and no formal code of ethics that a business should follow.

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Global Competition and Marketing Opportunities.

Demand business consider social values in

other countries where firms do business.

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Create framework for business ethics:

Adopt synthesis approach to resolve ethical

issues. Consider public image and consequences of actions. Adapt ethical standards as rapid change is constant in business. Work with government rather than against Will not be easy but alternative is increased regulation and public mistrust.
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