2. 9/17/2015 1 Chapter 2 – Ethics in Our Law Business Law Mr. Smith

3. 9/17/2015 2 Ethics-- Deciding what is right or wrong in a _________, _________ manner

4. 9/17/2015 3 Element 1 – Decision about right or wrong action – The decision ______ affect you or ______ in some significant way Example—Should life support be terminated on a terminally ill patient?

5. 9/17/2015 4 Element 2 – Decision is reasoned Based on reason; NOT _________ Reason usually based on a ________ authority that provides consistency – Law, religious text

6. 9/17/2015 5 Element 3 – Decision is impartial Impartiality—the same ethical standards apply to ____________ – We must balance our self interest with the interests of others – Ethics does not value one person or group ______ than another – Each person is an individual and should receive equal respect

7. 9/17/2015 6 Definition: ethical ________ used in making business decisions – Often jeopardized because of ________ MAXIMIZATION: owners may be more concerned with cutting pay and jobs to save $$$ to produce short term profits than with the effect the loss of a job has on the individual.

8. 9/17/2015 7 Rule-Based Reasoning vs. Consequence Based Reasoning Rule Based Reasoning— acts are either _______ or _______ – Ex: lying is always bad & telling the truth is always right You cannot justify an action by showing that it produces good _____________ – Ex: lying cannot be justified by saying that it produces good consequences Consequence Based Reasoning—rightness or wrongness based _______ on the results of an action – Ex: Lying usually produces bad consequences

9. 9/17/2015 8 Rule Based Reasoning (Fundamental Ethical Rules) The acts ____________ are judged as right or wrong The standard for judging comes from: – Recognized __________ (law or religion) – Human ___________ Universalizing—picturing in your own mind everyone in the world doing an action; is the action irrational, illogical or self-defeating?

10. 9/17/2015 9 Steps in Making a Decision Based on Consequences Step 1 – Look at _______ ways to alter the current situation Step 2 – Forecast the consequences of each alternative Step 3 – Evaluate the consequences that will result in the ___________ good – The Good: primary goal toward which human life should be judged (basic goals—love, beauty, knowledge, pleasure, power, truth, liberty, justice)

11. 9/17/2015 10 Lesson 2-3: How Ethics is Expressed in Our Laws Our laws reflect _______ based on consequences – Majority rule—elected representatives must vote for laws that are acceptable to the _________ of the people they represent Laws are good/right when they affect the majority of the people positively Laws are wrong when they affect the majority negatively

12. 9/17/2015 11 Our Laws Reflect Rule-Based Reasoning Laws of the majority sometimes conflict with ______ rights: the majority may sometimes benefit from unjust laws – Example: slavery. A majority of the people would benefit in receiving free labor; however, the human rights of the minority would be violated and would be inconsistent with their civil rights (personal, human rights recognized and guaranteed by our Constitution Freedom of religion, speech, press, assembly, etc.

13. 9/17/2015 12 Other Ethical Goals Reflected in our Laws Arbitrary Rule or Law – Not based on _______ rule – Not based on ________ – Based on CONSISTENCY – These rules MUST be communicated in advance – See What’s Your Verdict on p. 27

14. 9/17/2015 13 WHY WE OBEY LAWS Ethical ______ demands it – Consequence based—when laws are violated, more people are injured than benefited – Rule based—if we agree to obey laws, we are breaking our promise We agree to obey laws To avoid punishment – Fines – Jail time – Fines & Jail combined – Death

15. 9/17/2015 14 Other Punishments for Committing Crimes OUTSIDE the Judicial System _______ from jobs that require security clearance Failure to qualify for ________ bond—insurance policy that pays the employer money in the case of theft by employees _______ professions for those convicted of serious crimes – Doctors, lawyers, CPA’s

16. 9/17/2015 15 Civil Disobedience Open, _______ violation of a law to protest its alleged injustice Ethical when: – A written law is in _______ with ethical reasoning – No effective political methods are available to correct the law – Non-violent – Does not advance one’s __________ self interest – Public – Willing to accept the punishment for violating the law Example—Martin Luther King, Jr.

17. 9/17/2015 16 Scofflaw People who break the law out of _________ for the law – Out for self-benefit – Expect to _______ the punishment