Business and Personal Law
Chapter 1
Ethics and the Law
What we’ll explore . . .
How ethical decisions are made
How ethics and the law differ
The importance of law
The relationship between ethics and
the law
The primary sources of American law
How do you know the difference
between right and wrong?
Defining Ethics
Laws generally reflect and promote the
values of our society
Ethics
The study of values, of how we ought to live
Used interchangeably with morals and
values
Challenging
Citizens have different views
Diverse backgrounds
Code of Ethics
Throughout your life you will be faced
with ethical decisions
Personal – determined by one’s beliefs,
attitudes, religion, family and friends
Business – collection of principles and
rules of conduct for an organization
Ethics - continued
Values
Standards or ideals to guide our conduct
and decision-making
Very important in Business
Many professions also have a “code
of ethics” to abide by
5 Cornerstones to Ethical
Behavior
Do what you say you will do
Never divulge information given to
you in confidence
Accept responsibility for your
mistakes
Never become involved in a lie
Avoid accepting gifts that might
compromise your ability to be
objective
Views
Feelings and Opinions
Right & wrong can change
The Greatest Good
Actions affect others
Greatest good for greatest number
The Golden Rule
Respects dignity & worth of individuals
Can be applied to most situations
Ethical Character Traits
Honesty
Justice
Compassion
Integrity
Ethical Decision Making Model
What are the issues
What are the alternatives
Who are the affected parties?
How do the alternatives affect the
parties
Points to consider –
Is it legal
is it balanced
is it fair
Relationship between Ethics and
the Law
Ethics tell us what we ought to do
Laws are needed because people
don’t always do what they should
Law: System of rules established by
government to maintain stability in
society.
Ethical and Legal Conflicts
Because law is made by people, it is
imperfect
Legislators and judges bring their
personal views.
Examples where something can be
legal but unethical????
Section 1.2 – Sources of Law
Constitution
Federal and State
English Common Law
Statutes
Court Decisions
Administrative Law
Constitution
Sets forth basic rights of citizens
Bill of Rights – 1st 10 amendments
Limit powers of the government
Protect individual Rights
Protect rights of someone accused of a crime
State Constitution – each has one
Not identical to federal constitution
Can be more protective, narrower, more
restrictive
Common Law
Rooted in English Common Law
All states except Louisiana
Judges made decisions based on
customs & traditions
Formed a “common law”
Court decisions
Rely on a “precedent”
Stare decisis – let the decision stand
Statutory Law
Statutes
Passed by a governing body
Can be federal, state or local
National – Congress
Wisconsin – Assembly
State legislatures cannot pass laws
that conflict with the U.S. Consitution.
Court Decision
Court-made Law Case Law
Courts make laws in 3 ways:
Common law tradition
Interpreting statutes
Judicial Review
Decisions made by highest court
becomes law of the state
Administrative Agencies
Legislators give power to agencies to
regulate activity.
Examples
IRS
FCC
Have a wide range of powers
Need checks & balances on their
power.