Business Law

Katy Perryman

Business Law I

Mrs. Kristen Pleasant

April 29, 2010

Why bother with Ethics in Business?

The word “ethics” originated from the Greek word ethos (character) and the Latin word mores (customs). Combined, the word ethics was formed and defines how individuals choose to interact with one another (www.wikipedia.com). A more simple definition states that “ethics is the study of how people ought to act” (Beatty and Samuelson). Ethics refers to well founded standards of right and wrong that prescribes what humans ought to do, usually in terms of rights, evenhandedness, responsibilities and benefits to others and to society as a whole. Ethics also means the continuous effort of studying our own moral beliefs and our moral conduct and striving to ensure that we live up to standards that are reasonable (Roa and Floriano).

Although law often embodies ethical principles, law and ethics are far from co-extensive. Many acts that would be widely denounced as unethical are not illegal. Examples include betraying a friend or lying to a parent. Whilst these acts are considered to be unethical, they are by no means illegal. In some cases it might be unethical to be legal and in others it might be ethical to commit an illegal act. Examples of these include Dr. Martin Luther King’s protests and rallies which at the time were considered to be illegal, but were being done for an ethical cause; also it is unethical for one to stand and watch a child drowning in a lake and can be of assistance, but this person is by no means bound to offer assistance.

Defining the term ethics is very easy. However, determining what the principles are is very difficult. Ethics vary across countries and cultures and what one may consider ethical, another may not. Such an example includes bribery which is acceptable in some countries especially third world nations but is considered both unethical and illegal in the United States and in most Western countries....