Business Ethics and the Legal Environment of Business

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Presentation transcript:

Business Ethics and the Legal Environment of Business Chapter Five Business Ethics and the Legal Environment of Business © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Introduction to Business

Learning Objectives Understand the relationship between ethics and the law and appreciate why it is important to behave ethically. Differentiate the claims of the different stakeholder groups affected by a company’s actions. Identify the four main sources of business ethics, and describe four rules that can be used to help companies and their employees behave ethically.

Learning Objectives Describe some methods companies can use to strengthen their ethical rules and positions. Appreciate the important ways a nation’s business laws and regulations affect business commerce, occupations and organization.

The Nature of Ethics Ethical dilemmas Ethics and the law Changes in ethics over time

Stakeholders and Business Ethics Stockholders Managers Employees Suppliers and Distributors Customers Community, Society, and Nation

Rules for Ethical Decision Making Utilitarian rule Moral rights rule Justice rule Practical rule

Why Should Managers Behave Ethically? The relentless pursuit of self-interest can lead to a collective disaster Trust

Business Ethics Societal ethics Occupational ethics Individual ethics Organizational ethics

Business Ethics The Advantages of Behaving Ethically reputation Creating an Ethical Organization whistleblower

Laws Affecting Business Commerce Antitrust laws Consumer safety laws Environmental protection laws Laws relating to the public interest

Laws Affecting Business Occupations Laws regulating occupations Laws governing diversity Laws promoting occupational health and safety

Laws Affecting Business Organization Laws of incorporation and bankruptcy Laws protecting a business’s resources

Laws of Incorporation and Bankruptcy Chapter 7 bankruptcy Chapter 11 bankruptcy

Laws Protecting a Business’s Resources Patents Copyrights Trademarks