Law and Ethics: Understanding Moral Principles

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Questions and Answers

What is the primary focus of the Value Chain in an organization?

Transforming raw materials into a delivered product or service (correct)

Respecting human rights in the host country

Cooperating with the local government to develop just background institutions

Eliminating forced labor and child labor

What is the primary reason to study law and ethics?

To understand the differences between preconventional, conventional, and postconventional ethical reasoning

To know what is right and wrong

To make a clear effort to define principles and moral values

To know what the pitfalls with popular principles are (correct)

What type of ethical reasoning is characterized by perceptions of right and wrong being directly linked to punishments or rewards?

Preconventional (correct)

Conventional

Normative

Postconventional

What is the primary responsibility of multinationals that build hazardous plants in host countries?

Ensuring the plants are safe and operated safely Signup and view all the answers

What is the primary goal of business ethics?

To apply standards of moral behaviour to business Signup and view all the answers

What is the primary goal of the OECD's concept of combating bribery?

Preventing corruption in business practices Signup and view all the answers

Which of the following stakeholders is likely to be affected by delayed payment?

Suppliers Signup and view all the answers

What is the primary focus of the UN Global Impact's Labour Standards?

Eliminating forced labor, child labor, and discrimination Signup and view all the answers

What is the primary goal of the Global Ethics' concept of 'Do no intentional harm'?

Preventing harm to the host country and its people Signup and view all the answers

What is the primary goal of corporate governance?

To direct and control business corporations Signup and view all the answers

What is the primary approach to resolving ethical dilemmas in the context of business ethics?

Analyzing the consequences and actions Signup and view all the answers

What is the primary focus of the UN Global Impact's Environment principle?

Promoting environmental responsibility and eco-friendly technologies Signup and view all the answers

What is the primary characteristic of organisational culture?

The values and beliefs of the organisation Signup and view all the answers

What is the primary principle of the 'ends-based' resolution principle?

Evaluating the consequences of an action Signup and view all the answers

Study Notes

Why Study Law and Ethics?

It's not always clear what's right, and knowing the pitfalls of popular principles is essential.

Ethical Reasoning

Preconventional: Right and wrong are linked to punishments or rewards.
Conventional: Influences outside the family are considered.
Postconventional: Individuals define their own moral values and principles.

Resolving an Ethical Dilemma

Analyse the consequences of an action.
Analyse the actions themselves.
Make a decision.

Ethical Relativism

Ethical principles are defined by society, personal opinions, and present circumstances.

Business Ethics

The application of moral standards to business practices.
Two approaches: Descriptive and Normative.
Descriptive: Summarizing customs, attitudes, and rules within a business.
Normative: Evaluating the ethics of observed customs, attitudes, and rules.

Stakeholders

Impact of unethical business behavior:
- Stockholders/Shareholders: Loss of stock value.
- Employees: Loss of job.
- Customers: Poor service/product quality.
- Suppliers: Delayed payment.
- Government: Loss of tax revenue.
- Creditors: Loss of principal and interest.
- Community: Pollution.

Corporate Governance

System by which business corporations are directed and controlled.

Doing the Right Thing

Consult the Company Code of Ethics.
Do what's right for the organization's stakeholders.
Do what's legal.
Do what you think is best (use your best judgment).
Do the right thing.

Resolving Ethical Dilemmas

Term vs. Loyalty.
Short term vs. Long term.
Justice vs. Mercy.
Individual vs. Community.

Resolution Principles

Ends-based.
Rules-based.
The Golden Rule.

Organisational Ethics

Total departments: Research & Development, Manufacturing, Marketing, Sales, Customer Service.
Organisational culture: Shared values, beliefs, and norms.
Value Chain: Key functional inputs in the transformation of raw materials into a delivered product or service.

The Pursuit of Global Ethics

Do no intentional harm.
Produce more goods than harm for the host country.
Contribute to the host country's development.
Respect the human rights of employees.
Respect the local culture.
Pay a fair share of taxes.
Cooperate with the local government to develop and enforce just background institutions.

UN Global Impact

1. Human Rights: Respect and protect human rights; don't abuse them.
1. Labour Standards: Eliminate forced labour, child labour, and discrimination; encourage freedom.
1. Environment: Promote environmental responsibility, develop eco-friendly tech, and adopt a precautionary approach.
1. Anti-corruption: No more corruption.

OECD

Concepts and principles:
- General policies disclosure.
- Science and technology.
- Environment.
- Employee and industry relations.
- Combating bribery.
- Consumer interest.
- Taxation and competition.

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Description

Explore the complexities of law and ethics, including the different stages of ethical reasoning, from preconventional to postconventional. Learn to identify the pitfalls of popular principles and develop a personal value system.