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 Very important in Business 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 The Greatest Good The Golden Rule 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 Can be federal, state or local 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.