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Business Ethics and the Legal Environment of Business

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Presentation on theme: "Business Ethics and the Legal Environment of Business"— Presentation transcript:

1

2 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

3 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.

4 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.

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

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

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

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

9 Business Ethics Societal ethics Occupational ethics Individual ethics
Organizational ethics

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

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

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

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

14 Laws of Incorporation and Bankruptcy
Chapter 7 bankruptcy Chapter 11 bankruptcy

15 Laws Protecting a Business’s Resources
Patents Copyrights Trademarks

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