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Business Ethics and the Legal Environment of Business
Chapter Five Business Ethics and the Legal Environment of Business © The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Introduction to Business
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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.
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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.
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The Nature of Ethics Ethical dilemmas Ethics and the law
Changes in ethics over time
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Stakeholders and Business Ethics
Stockholders Managers Employees Suppliers and Distributors Customers Community, Society, and Nation
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Rules for Ethical Decision Making
Utilitarian rule Moral rights rule Justice rule Practical rule
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Why Should Managers Behave Ethically?
The relentless pursuit of self-interest can lead to a collective disaster Trust
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Business Ethics Societal ethics Occupational ethics Individual ethics
Organizational ethics
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Business Ethics The Advantages of Behaving Ethically
reputation Creating an Ethical Organization whistleblower
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Laws Affecting Business Commerce
Antitrust laws Consumer safety laws Environmental protection laws Laws relating to the public interest
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Laws Affecting Business Occupations
Laws regulating occupations Laws governing diversity Laws promoting occupational health and safety
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Laws Affecting Business Organization
Laws of incorporation and bankruptcy Laws protecting a business’s resources
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Laws of Incorporation and Bankruptcy
Chapter 7 bankruptcy Chapter 11 bankruptcy
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Laws Protecting a Business’s Resources
Patents Copyrights Trademarks
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