1. Chapter 1-REVIEW
An Introduction to the Fundamentals of Dynamic Business Law and Business Ethics
Chapter 1: An Introduction to the Fundamentals of Dynamic Business Law and Business Ethics

2. Business Law
Definition: Enforceable rules of conduct that govern commercial relationships
Business law consists of enforceable rules of conduct that govern commercial relationships.

3. Functional Areas of Business Affected By Business Law
Corporate Management
Production and Transportation
Marketing
Research and Development
Accounting and Finance
Human Resource Management
The “functional” areas of business affected by business law include corporate management, production and transportation, marketing, research and development, accounting and finance, and human resource management.

4. Purposes of the Law Providing order
Serving as an alternative to altercation
Facilitating a sense that change is possible
Encouraging social justice
Guaranteeing personal freedoms
Serving as a moral guide
There are several purposes served in having law. Law provides order, serves as an alternative to altercation, facilitates a sense that change is possible, encourages social justice, guarantees personal freedoms, and serves as a moral guide.

5. Classification of Law
Private Law: Involves disputes between private individuals or groups
Public Law: Involves disputes between private individuals or groups and their government
Law can be classified as either “public” or “private.” Private law involves disputes between private individuals or groups, while public law involves disputes between private individuals or groups and their government.

6. Classification of Law
Civil Law: Involves the rights and responsibilities involved in relationships between persons and between persons and their government
Criminal Law: Involves incidents in which someone commits an act against the public as a whole
Law can be further classified as either “civil” or “criminal.” Civil law involves the rights and responsibilities in relationships between persons and between persons and their government, while criminal law involves incidents in which someone commits a wrongful act against the public as a whole.

7. Sources of Business Law
Constitutions
Statutes
Cases
Administrative Law
Treaties
Executive Orders
Federal and state sources of business law include constitutional law, statutes, judicial decisions, administrative law, treaties, and executive orders.

8. Major Federal Administrative Agencies (Independent)
Commodity Futures Trading Commission
Consumer Product Safety Commission
Equal Employment Opportunity Commission
Federal Trade Commission
Federal Communications Commission
Interstate Commerce Commission
National Labor Relations Board
National Transportation Safety Board
Nuclear Regulatory Commission
Securities and Exchange Commission
Federal administrative agencies can be classified as either “independent” or “executive.” Major “independent” federal administrative agencies include the Commodity Futures Trading Commission, the Consumer Product Safety Commission, the Equal Employment Opportunity Commission, the Federal Trade Commission, the Federal Communications Commission, the Interstate Commerce Commission, the National Labor Relations Board, the National Transportation Safety Board, the Nuclear Regulatory Commission, and the Securities and Exchange Commission.

9. Major Federal Administrative Agencies (Executive)
Federal Deposit Insurance Corporation
Occupational Safety and Health Administration
General Services Administration
National Aeronautics and Space Administration
Small Business Administration
International Development Cooperative Agency
National Science Foundation
Veterans Administration
Office of Personnel Management
Major “executive” federal administrative agencies include the Federal Deposit Insurance Corporation, the Occupational Safety and Health Administration, the General Services Administration, the National Aeronautics and Space Administration, the Small Business Administration, the International Development Cooperative Agency, the National Science Foundation, the Veterans Administration, and the Office of Personnel Management.

10. Business Ethics and Social Responsibility

11. Business Ethics and Social Responsibility
Ethics: The study and practice of decisions about what is good or right
Business Ethics: The application of ethics to the problems and opportunities experienced by businesspeople
Ethical Dilemma: A problem about what a firm should do for which no clear, right decision is available
Social Responsibility of Business: Expectations that the community imposes on firms doing business inside its borders
In addressing the topics of business ethics and social responsibility, several key topics are important to comprehend. First, “ethics” is the study and practice of decisions about what is good or right. Second, “business ethics” is the application of ethics to the problems and opportunities experienced by businesspeople. Third, an “ethical dilemma” is a problem regarding what a firm should do in situations where no clear, just decision is available. Finally, the “social responsibility” of business represents expectations that the community imposes on firms doing business within its borders.

12. The “WPH” Process of Ethical Decision Making: W—WHO (Stakeholders)
Consumers
Owners or Investors
Management
Employees
Community
Future Generations
The “WPH” process of ethical decision-making first involves a determination of “who” is affected by the decision-making process. These individuals are known as “stakeholders,” and include consumers, owners or investors, management, employees, the community-at-large, and future generations.

13. The “WPH” Process of Ethical Decision Making: P—PURPOSE (Values)
Freedom
Security
Justice
Efficiency
The “WPH” process of ethical decision-making next involves a determination of the “purpose” or “values” involved in the decision-making process. These purposes or values include freedom, security, justice, and efficiency.

14. Primary Values and Business Ethics: Freedom
To act without restriction from rules imposed by others
To possess the capacity or resources to act as one wishes
To escape the cares and demands of this world entirely
The primary values of freedom include the right to act without restriction from rules imposed by others, the right to possess the capacity or resources to act as one wishes, and the right to escape the “cares and demands of this world” entirely.

15. Primary Values and Business Ethics: Security
To possess a large enough supply of goods and services to meet basic needs
To be safe from those wishing to interfere with your property rights
To achieve the psychological condition of self-confidence such that risks are welcome
The primary values of security include the right to possess a large enough supply of goods and services to meet basic needs, the right to be safe from those wishing to interfere with your property rights, and the right to achieve self-confidence such that risks are welcome.

16. Primary Values and Business Ethics: Justice
To receive the products of your labor
To treat all humans identically, regardless of race, class, gender, age, and sexual preference
To provide resources in proportion to need
To possess anything that someone else was willing to grant you
The primary values of justice include the right to receive the products of your labor, the right to treat all humans identically (regardless of race, class, gender, age, and sexual preference,) the right to provide resources in proportion to need, and the right to possess anything that someone else was willing to grant you.

17. Primary Values and Business Ethics: Efficiency
To maximize the amount of wealth in society
To get the most from a particular output
To minimize costs
The primary values of efficiency include the right to maximize the amount of wealth in society, the right to get the most from a particular output, and the right to minimize costs.

18. The “WPH” Process of Ethical Decision Making: H—HOW (Guidelines)
The Golden Rule
Public Disclosure Test
Universalization Test
The “WPH” process of ethical decision-making finally involves the determination of “how” to best conduct the decision-making process, in recognition of appropriate decision-making guidelines. This includes application of “The Golden Rule,” the “public disclosure” test, and the “universalization” test.

19. Six Ways To Interpret “The Golden Rule”
Do to others as you want them to gratify you
Be considerate of others’ feelings as you want them to be considerate of yours
Treat others as persons of rational dignity like you
Extend brotherly or sisterly love to others, as you would want them to do to you
Treat others according to moral insight, as you would have others treat you
Do to others as God wants you to do to them
There are several appropriate ways to interpret and apply “The Golden Rule.” These include “Do to others as you want them to gratify you,” “Be considerate of others’ feelings as you want them to be considerate of yours,” “Treat others as persons of rational dignity like you,” “Extend brotherly or sisterly love to others, as you would want them to do to you,” “Treat others according to moral insight, as you would have others treat you,” and “Do to others as God wants you to do to them.”