Chapter 1 Chapter 1 Ethics and Law Monday, June 27, 2016Monday, June 27, 2016Monday, June 27, 2016Monday, June 27, 2016

Objectives 1. Differentiate among the ways in which ethical decisions can be made.

Objectives 2. Define the law and explain why laws are needed.

Objectives 3. Explain how and why ethics and the law do not always coincide.

Objectives 4. Distinguish among the five major sources of today’s law.

How ethical decisions are made The Greatest Good: –M–Making decisions based on the greatest good for the greatest number of people.

How ethical decisions are made Golden Rule: –D–Do unto others as you would have them do unto you. –E–Empathy (putting yourself in someone else’s shoes to understand where they are coming from and how they might be feeling).

How ethical decisions are made Real-World Ethics –Is it permissible to lie to save someone’s life?

Relationship between Law and Ethics Law: Consists of rules of conduct established by the government of a society to maintain stability and justice.

Relationship between Law and Ethics Ethical and Legal Conflicts: When law and people’s opinions differ.

Illegal, but unethical? Taking office supplies from the company supply cabinet for personal use. Legally, this is considered theft, but many people see no moral or ethical problem and do it anyway.

Illegal, but unethical? Yet, speeding is illegal, but many people do not have an ethical conflict with exceeding the speed limit.

Illegal, but unethical? Buying a copyrighted software program and installing it on multiple computers. Technically, this violates Federal copyright laws. Yet, the piracy of software is widespread

Unethical, but illegal? Nike produces the majority of its goods in South East Asia. Despite the profits of the Nike organization, its foreign workers are paid substandard wages and work long hours in appalling conditions. In 1996, the entry-level wage at one of these factories was $2.20 a day. Labor groups estimate that a livable wage in Indonesia is about $4.25 a day. Compare this with the pay of one of Nike's celebrity promoters, Michael Jordan, who gets $20 million a year to promote Nike sneakers. Jordan's compensation alone is more than the annual income of 20,000 workers who make Nike shoes. Nike’s manufacturing practices are not illegal. There is nothing that says a company cannot take its manufacturing operations outside the United States. And as long as the company is meeting the minimum wage standards of the host country, there is nothing illegal about paying low wages. However, most Americans would look at these practices as unethical, especially considering the profits of Nike and their spending on celebrity promoters.

Unethical, but illegal? You are the hiring manager of a company and your spouse needs a job. You hire your spouse even though you have three candidates who are way more qualified. Illegal? No. Unethical? Most would say, yes.

Main Sources of Law 1.Federal and State Constitutions

U. S. Constitution Highest law of the land State constitutions cannot state anything that would contradict (conflict with) the U. S. Constitution.

Main Sources of Law 2.English Common Law There was no written law Based on “precedent” Precedent = based on a prior judge’s decision

Main Sources of Law 3.Statutes = a law created to make a law. Federal and state Laws passed by a governing board Example: U. S. congress

Main Sources of Law 4.Court Decisions Creating laws from decisions made in court cases. Interpreting laws when a statute is confusing. Judicial review for things that might conflict with the constitution.

Main Sources of Law 5.Administrative Regulations Rules created by government agencies. Example: IRS

International Law Treaties International agreements –Trade agreements –Provide recommendations