1. 2.1-2.3 ETHICAL BASES FOR LAWS Chapter 2

2. Ethics A practice of deciding what is right or wrong in a reasoned, impartial manner  Decision affects you or others in significant way  Reasoned out typically by referring to a written authority  Based on reason, not emotion  Impartial – ethical standards are applied to everyone Why are ethics not considered when business decisions are made?

3. Ethics Explain how both ethics based on reasoning and consequences-based ethics conclude that people are obligated to obey the law. Consequences-based – looks for alternative ways to alter the situation  Forecast the consequences for each alternative  Evaluates and selects the one that will generate the greatest good (How do you define good?)  When a law is violated, many more people are injured than benefited Rule-based – acts themselves are judged as right or wrong  Through recognized authority or human reasoning  Picture everyone doing the act and ask yourself, “Would the result be irrational, illogical, or demeaning”  You are “breaking your promise” if break a law

4. Impartial Decisions Is the idea that the same ethical standards are applied to everyone.  It is wrong for you to engage in a certain action, then in the same circumstance it is also wrong for me.  (i.e.) you hit someone’s car and no one saw the accident.  You tell/contact the person whose car you hit despite no one seeing it.

5. Consequence-based Reasoning Recognizes that lying usually produces bad consequences. Rule-based ethics  Lying is always wrong.

6. Universalizing Picture in your mind that everyone in the world doing the action.  (i.e. Apply the test to lying by imagining a world where everyone lies. This would be illogical. There would be no point in lying, because no one would believe anyone. )

7. Business Ethics Ethical principles used in making business decisions.  Profit maximization  Move company/factories off shore and cut jobs and pay in order to reduce costs and produce greater short-term goals.

8. Ethics Reflected in Laws Democracy – U.S. representatives vote for laws that are acceptable to the majority of people. (Consequence based) Greatest good for the greatest number Constitution also serves to protect minorities that may be taken advantage of by majority Civil disobedience – open, peaceful, violation of law to protest its alleged, or supposed injustice

9. Elected representatives Must vote for laws acceptable to the majority of people they represent (if want re-election) Majority Rule

10. The capacity to do what is right even in the face of temptation or pressure to do otherwise.  Socrates: gave up his life for his ethical beliefs, he displayed the highest level of integrity. Integrity

11. A Question of Ethics Culture Values Ethics Law Turn to page 25, read “Ethics and Culture” Then turn to page 26, read and complete “Cultural Diversity in Law”

12. Is an insurance policy that pays the employer money in the case of theft by employees.  Convicted of a serious crime can not qualify for a fidelity bond.  Prospective lawyers, medical doctors, teachers, daycare providers are subject to a background check. Fidelity Bond

13. Civil Disobedience An open, peaceful, violation of a law to protest its alleged, or supposed, injustice. Goal is to make legal system more just. Participants may be willing or eager to be arrested to test the validity of a law in court.  Martin Luther King, Jr. willing and eager to be arrested in order to test the validity of the law in court.

14. Civil liberties Personal, human rights recognized and guaranteed by our Constitution.  Freedom of speech, press, unreasonable searches… Civil Rights

15. Persons who do not respect the law.  Risk of being caught against the benefits they obtain by breaking the law.  Think smart because they frequently violate valid laws without being caught.  Never ethically justified in violating the law. Scofflaws

16. Ethical Decision Making Guide 1. Determine the facts and state the problem  Assumes MORAL AWARENESS 2. Who will be affected by the decision (who are the stakeholders)? 3. Identify relevant factors (i.e., laws, professional codes, practical constraints, etc.) 4. Develop a list of 3-5 options 5. Test options  Harm, legal, precedence, publicity, defensibility, mom, golden rule, virtues, professional, peer, feelings, organization 6. Make a tentative choice  NOTE: May be influenced by contextual factors (i.e., organizational context, reaction of relevant others, role models, influential peers, etc.) 7. Review choice