Ethical but Not Legal Examples in Business

Of course, it could be that the finance professor mentioned above did not make a general statement about the relationship between ethics and law at all, but rather a more subtle point about ethical standards in competitive fields. After all, ethical rules are different in contradictory situations, and it could well be argued that in the highly regulated world of commerce, companies should feel empowered to resort to strategies that are not explicitly prohibited. If something is legal, is it ethical? Many ask themselves this question when they hear about companies finding loopholes and tax havens. It is not ethical, but the legal definition is a big difference. “It doesn`t take much imagination to see that these corporate structures can be used for nefarious purposes,” he added. “And, of course, they have all the legal protection of the United States.” But the transformer gives off a lot of heat, which is why it can sometimes burn and cause real damage to people. So if someone removes the fuse from the transformer when there is a possibility that the transformer will burn, it is illegal, but it is completely ethical because the person removing the fuses wants to avoid damage. So if you want to claim that what`s legal is also ethical, you have to bite a lot of bullets and accept as ethics a lot of behaviors that you probably don`t want to accept. CFI now offers the Business Essentials bundle with courses in Microsoft Excel, Word and PowerPoint, business communications, data visualization and an understanding of business strategy. To keep learning, we offer these resources: […] Ethics and law.

As should be obvious, ethics and law are not identical. What is legal is not always ethical and vice versa. A code of ethics usually tries to bridge the gap: you tell employees what […] The next logical step is to question the morality of the laws themselves and the morality of the government`s actions to enforce them. If a law wrongly deprives a person of his property or freedom, it is wrong. When the government enforces these laws, it commits unethical aggression against the people. But this reasoning is incomplete at best, leaving open another line of reasoning, which applies even in competing fields, and which should really lead an issue to the heart of the nonsense “legal = ethical”. But if the finance professor mentioned above was right, there would be no way to find a moral justification for a new law. Finally, in his opinion, if a behavior is legal (now), then it is ethically acceptable (now). On what basis could new laws ever be passed? Certainly not for ethical reasons, because the hypothesis is that if something is currently legal, it must be ethically correct. What happens if a terrible new toxin is discovered that would pose significant risks to workers or consumers if used by industry? Should it be banned? According to the finance professor, this is not possible. After all, its use is legal, so it must be ethical; And if it`s ethical, you can`t make it illegal.

For example, a tribal system and a state-level society usually have different opinions about what is ethical. However, the differences between people mean that there will always be a gap between what is legal and what is ethical. Ethical, but not legal and legal, but not ethical behavior. So let`s argue explicitly and explain why legality does not determine ethics. Laws are written and stated and must be followed for legal purposes. A code of ethics is made up of unwritten moral rules that differ from person to person and culture to culture. Bryan P. Marsal, co-CEO of Alvarez & Marsal and CEO of Lehman Brothers, oversaw the proceedings for the largest bankruptcy in history – the bankruptcy filing of Lehman Brothers in September 2008.

During a presentation to a group of businessmen, he was asked to comment on the status of ethics in business. He reportedly said, “There is none.” Marsal`s response highlighted the legal but unsavory behaviors that permeated the financial crisis and led to major reforms, particularly through the Dodd-Frank Act of 2010. Consider: On what general basis is something made illegal? Let us leave aside cases where unscrupulous legislators legislate solely for their own benefit or that of their friends. In all legitimate cases of legislation, the law always has a moral purpose – usually either to improve people`s lives and make them safer (e.g., seat belt laws) or to protect an important right (e.g., food labeling laws). […] In my opinion, it is ethically reprehensible and illegal to use fake doctor`s letters, also known as doctor`s apologies. If the sale and purchase of these […] What a great article. I am currently preparing an academic essay on ethical practice in real estate (in New Zealand). In this industry, there are a number of issues that are legal, but certainly anything but ethical. On the contrary, there are sometimes actions that I would consider preferable from an ethical point of view, but not really legal. […] Our exploration of the relationship between ethics and law.

(Two weeks ago, we discussed why what is legal is not always ethical; last week, we looked at why it can be difficult to follow the law and therefore sometimes break the law… 04. Smoking cigarettes in public is legal in some places, but some find it disrespectful and unethical. Sewage and oil and gas earthquakes are a good example. Sewage injection is legal, but if it is related to earthquakes, this remains to be determined; Is it ethical? Some elements to consider are that when correlating wastewater injection or removal and earthquakes, the methodology creates a model and methodology to understand why, how and to what extent wastewater injection induced seismicity or earthquakes. To start this model, you need to collect data on the number of barrels injecting wastewater into drain wells in the U.S. or even by region, and compare it to seismic activity over time. It would make a beautiful picture. Some additional considerations for the model methodology are to take the volume of liquid injected into the discharge wells and try to correlate the proximity of these removal wells with the epicenter of the seismic event or earthquake. The next step would be the overlay of geological maps of fractures and faults. This would provide data on the proximity of the epicentre to known fractures or faults, provide a possible correlation between the volume injected into the discharge wells and the epicentres, possibly begin to define a radius of induced seismicity and place parameters around areas of interest that may be very sensitive to the injection of disposal wells, as opposed to areas, which are less sensitive or even advantageous for such an injection. Building a data-driven model, rather than seeing a trend and making assumptions, seems to be the best approach.

I can assure you that oil and gas operators are just as interested in this data as the general public and academics, if not more so. Rest assured that state regulators are closely monitoring correlations and data from the academic community. In fact, the Oklahoma Corporation Commission has already introduced regulations for injection drilling. If it is determined that the disposal of oil and gas wastewater is directly linked to earthquakes, the oil and gas industry and our country will face very difficult choices. Without entering into the debate on renewable energies, this country is still heavily dependent on hydrocarbons as an energy source. Operationally, oil and gas operators would be forced to close almost overnight unless they found a proven way to recycle the water produced. This night closure would lead to massive unemployment, power cuts, outrageous fuel prices and general chaos greater than the oil embargo of the 70s. Ethical decisions would focus on future oil and gas demand, environmental responsibility, community engagement and dependence on foreign oil. The utilitarian ethical dilemma becomes one of the best for the United States; Shut down all oil and gas development to reduce the risk of a major earthquake, loss of life and suffering from shock waves when domestic oil and gas production is no longer available, or try to mitigate and promote responsible domestic oil and gas development while trying to understand and reduce the risk of earthquakes in “flyby states”? From what we know today, the disposal of oil and gas wastewater is still legal, but is it ethical? Is it ethical to shut down the main industry that fuels Oklahoma`s economy based on assumptions rather than verifiable data? […] Rexall`s dubious homeopathic offerings. From Canadian Business and MSN. Because legal is not necessarily ethical. […] If investment professionals find themselves in a situation where the only obvious course of action violates ethical or legal principles, they should assess the situation and consider new courses of action that do not.

Most importantly, businesses and individuals must constantly take proactive steps to reduce the likelihood of such situations. Individual assignment Ethical but illegal issue.docx For example, a mutual fund may explain the risks of investing in different asset classes before creating a portfolio or promising clients a certain expected return. While such disclosure may deter some potential new customers, it will improve the long-term viability of the business, as it can reduce the likelihood of dissatisfied customers taking legal action against the company. An investment firm is not necessarily required to provide such information, but may do so in order to be considered ethical. The examples you list are morally reprehensible, not ethically reprehensible. Not so long ago, the law in the South stipulated that blacks had to sit in the back of the bus. Legally, but not ethically!!! 05.

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