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

Chapter 1An Introduction to the Fundamentals of Dynamic Business Law and Business EthicsBusiness LawDefinition: Enforceable rules of conduct that govern commercial relationshipsFunctional Areas of Business Affected By Business LawCorporate ManagementProduction and TransportationMarketingResearch and DevelopmentAccounting and FinanceHuman Resource ManagementPurposes of the LawProviding orderServing as an alternative to altercationFacilitating a sense that change is possibleEncouraging social justiceGuaranteeing personal freedomsServing as a moral guideClassification of LawPrivate Law: Involves disputes between private individuals or groupsPublic Law: Involves disputes between private individuals or groups and their governmentClassification of LawCivil Law: Involves the rights and responsibilities involved in relationships between persons and between persons and their governmentCriminal Law: Involves incidents in which someone commits an act against the public as a wholeSources of Business LawConstitutionsStatutesCasesAdministrative LawTreatiesExecutive OrdersMajor Federal Administrative Agencies (Independent)Commodity Futures Trading CommissionConsumer Product Safety CommissionEqual Employment Opportunity CommissionFederal Trade CommissionFederal Communications CommissionInterstate Commerce CommissionNational Labor Relations BoardNational Transportation Safety BoardNuclear Regulatory CommissionSecurities and Exchange CommissionMajor Federal Administrative Agencies (Executive)Federal Deposit Insurance CorporationOccupational Safety and Health AdministrationGeneral Services AdministrationNational Aeronautics and Space AdministrationSmall Business AdministrationInternational Development Cooperative AgencyNational Science FoundationVeterans AdministrationOffice of Personnel ManagementSchools of Legal InterpretationNatural LawLegal PositivismIdentification with the VulnerableHistorical School: TraditionLegal RealismCost-Benefit AnalysisBusiness Ethics and Social ResponsibilityBusiness Ethics and Social ResponsibilityEthics: The study and practice of decisions about what is good or rightBusiness Ethics: The application of ethics to the problems and opportunities experienced by businesspeopleEthical Dilemma: A problem about what a firm should do for which no clear, right decision is availableSocial Responsibility of Business: Expectations that the community imposes on firms doing business inside its bordersThe “WPH” Process of Ethical Decision Making: W—WHO (Stakeholders)ConsumersOwners or InvestorsManagementEmployeesCommunityFuture GenerationsThe “WPH” Process of Ethical Decision Making: P—PURPOSE (Values)FreedomSecurityJusticeEfficiencyPrimary Values and Business Ethics: FreedomTo act without restriction from rules imposed by othersTo possess the capacity or resources to act as one wishesTo escape the cares and demands of this world entirelyPrimary Values and Business Ethics: SecurityTo possess a large enough supply of goods and services to meet basic needsTo be safe from those wishing to interfere with your property rightsTo achieve the psychological condition of self-confidence such that risks are welcomePrimary Values and Business Ethics: JusticeTo receive the products of your laborTo treat all humans identically, regardless of race, class, gender, age, and sexual preferenceTo provide resources in proportion to needTo possess anything that someone else was willing to grant youPrimary Values and Business Ethics: EfficiencyTo maximize the amount of wealth in societyTo get the most from a particular outputTo minimize costsThe “WPH” Process of Ethical Decision Making: H—HOW (Guidelines)The Golden RulePublic Disclosure TestUniversalization TestSix Ways To Interpret “The Golden Rule”Do to others as you want them to gratify youBe considerate of others’ feelings as you want them to be considerate of yoursTreat others as persons of rational dignity like youExtend brotherly or sisterly love to others, as you would want them to do to youTreat others according to moral insight, as you would have others treat youDo to others as God wants you to do to them