Lectures 4: Ethics and Law

Definition of Ethics

By ethics, we mean that branch of moral philosophy that guides people about what is
good or bad. It is a collection of fundamental concepts and principles of an ideal human
character. The principles help us in making decisions regarding, what is right or wrong. It
informs us about how to act in a particular situation and make a judgement to make better
choices for ourselves.

Ethics are the code of conduct agreed and adopted by the people. It sets a standard of how
a person should live and interact with other people.

Definition of Law

The law is described as the set of rules and regulation, created by the government to
govern the whole society. The law is universally accepted, recognised and enforced. It is
created with the purpose of maintaining social order, peace, justice in the society and to
provide protection to the general public and safeguard their interest. It is made after
considering ethical principles and moral values.

The law is made by the judicial system of the country. Every person in the country is
bound to follow the law. It clearly defines what a person must or must not do. So, in
the case of the breach of law may result in the punishment or penalty or sometimes both.

Law is the systematic set of universally accepted rules and regulation created by
appropriate authority, i.e. government, which may be regional, national and international.
Talking about the latter (ethics), they are the principles that guide a person or society,
created to decide what is good or bad. For a layman, these two terms are same, but the
fact is that there is a number of distinguishing point amidst these two terms.

Content: Law Vs Ethics

Comparison Chart

Basis for
Law Ethics
Comparison
The law refers to a systematic body of Ethics is a branch of moral
Meaning rules that governs the whole society and philosophy that guides people
the actions of its individual members. about the basic human conduct.
What is it? Set of rules and regulations Set of guidelines
Individual, Legal and
Governed By Government
Professional norms
Expression Expressed and published in writing. They are abstract.
Violation Violation of law is not permissible There is no punishment for

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 Basis for
Law Ethics
Comparison
which may result in punishment like
violation of ethics.
imprisonment or fine or both.
Law is created with an intent to maintain Ethics are made to help people
Objective social order and peace in the society and to decide what is right or wrong
provide protection to all the citizens. and how to act.
Ethics do not have a binding
Binding Law has a legal binding.
nature.

Key Differences Between Law and Ethics

The major differences between law and ethics are mentioned below:

1. The law is defined as the systematic body of rules that governs the whole society
and the actions of its individual members. Ethics means the science of a standard
human conduct.
2. The law consists of a set of rules and regulations, whereas Ethics comprises of
guidelines and principles that inform people about how to live or how to behave
in a particular situation.
3. The law is created by the Government, which may be local, regional, national or
international. On the other hand, ethics are governed by an individual, legal or
professional norms, i.e. workplace ethics, environmental ethics and so on.
4. The law is expressed in the constitution in a written form. As opposed to ethics, it
cannot be found in writing form.
5. The breach of law may result in punishment or penalty, or both which is not in the
case of breach of ethics.
6. The objective of the law is to maintain social order and peace within the nation
and protection to all the citizens. Unlike, ethics that are the code of conduct that
helps a person to decide what is right or wrong and how to act.
7. The law creates a legal binding, but ethics has no such binding on the people.

Conclusion

Law and ethics are different in a manner that what a person must do and what a person
should do. The former is universally accepted while the latter is ideal human conduct,
agreed upon by most of the people. Although, both the law and ethics are made in
alignment so that they do not contradict each other. Both go side by side, as they provide
how to act in a particular manner. Every person is equal in the eyes of law and ethics, i.e.
nobody is superior or inferior. Further, these two allows a person to think freely and
choose.

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 1. Definitions & Nature

Differences between law and ethics:

A law is something you must obey.

Ethics is how society expects you to behave.
A religion may have ethics that are separate from laws.

For example, in many religions abortions are prohibited; however in many countries abortions are
allowed. Religious laws do not necessarily become part of a society's legal code.

Law can be defined as a consistent set of universal rules that are widely published, generally
accepted, and usually enforced. These rules describe the ways in which people are required to act
in their relationships with others in a society. They are requirements to act in a given way, not
just expectations or suggestions to act in that way. Since the government establishes law, the
government can use police powers to enforce laws. The following chart defines the terms in the
definition of law above.

Consistent – If two requirements contradict each other, both cannot be termed a law, because people
cannot obey both.

Universal – The requirements must be applicable to every one with similar characteristics facing the
same set of circumstances.

Published – The requirements have to be published, in written form, so that they are accessible to
everyone within the society.

Accepted – The requirements have to be generally obeyed.

Enforced – Members of society must be compelled to obey the law if they do not choose to do so
voluntarily.

The word ethics is derived from the Greek word ethos (character), and from the Latin word mores
(customs). Together they combine to define how individuals choose to interact with one another. In
philosophy, ethics defines what is good for the individual and for society and establishes the nature of
duties that people owe themselves and one another. The following items are characteristics of ethics:

-Ethics involves learning what is right and wrong, and then doing the right thing.

-Most ethical decisions have extended consequences.

-Most ethical decisions have multiple alternatives.

-Most ethical decisions have mixed outcomes.

-Most ethical decisions have uncertain consequences.

-Most ethical decisions have personal implications.

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It is important to note that there is also a difference between ethics and morality. Morality refers both
to the standards of behavior by which individuals are judged, and to the standards of behavior by
which people in general are judged in their relationships with others. Ethics, on the other hand,
encompasses the system of beliefs that supports a particular view of morality.

2. The Relation between Law and Ethics: Different Options:

Different options : a. Whatever is ethical may be legal; b. Whatever is ethical may be illegal;
c. Whatever is unethical may be legal; d. Whatever is unethical may be illegal.

Comments & Conclusion:

Ethical values and legal principles are usually closely related, but ethical obligations typically exceed
legal duties. In some cases, the law mandates ethical conduct. Examples of the application of law or
policy to ethics include employment law, federal regulations, and codes of ethics.

Though law often embodies ethical principles, law and ethics are far from co-extensive. The law does
not prohibit many acts that would be widely condemned as unethical. And the contrary is true as well.
The law also prohibits acts that some groups would perceive as ethical. For example lying or
betraying the confidence of a friend is not illegal, but most people would consider it unethical. Yet,
speeding is illegal, but many people do not have an ethical conflict with exceeding the speed limit.
Law is more than simply codifying ethical norms.

3. The Legislation of Ethics

Numerous laws have been enacted to protect employees against what society perceives as
unethical behavior in the workplace. Generally, laws reflect the ethical standards of the majority
of society. An example is With Disabilities Act of 1990 (ADA). According to the ADA:

"No covered entity shall discriminate against a qualified individual with a disability because of
the disability of such individual in regard to job application procedures, the hiring, advancement,
or discharge of employees, employee compensation, job training, and other terms, conditions,
and privileges of employment."

Most citizens would agree that it would be unethical to deny employment or promotion to a
disabled applicant, solely on the basis of that disability, especially when that disability would not
affect their work performance.

Ethics Regulations for Government Employees

Guiding Principles of Ethical Behavior

When it comes to ethics, there is no neutral ground. Successful business is not possible
without strong, deeply held values. Company culture is based on core values which
define the character of each company. These values, set forth in our Vision, Values, and
Guiding Principles of Ethical Behavior, are organized around three foundational beliefs:
Integrity, Excellence, and Respect for Others. They may guide our business for many
decades.

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Carefully read the Guiding Principles and apply them daily in your pursuit of our shared
vision.

Overview
Company employees must always act ethically. The following Guiding Principles of
Ethical Behavior set forth basic guidelines for appropriate workplace conduct. All
employees and other individuals required by Company policy to acknowledge this Code
must read, understand, and comply with them. Employees who are uncertain whether
their or their co-workers’ conduct complies with the Guiding Principles should contact
their manager or the General Counsel. Employees should report non-compliance as
described below.

Compliance with Laws, Rules, Regulations

Employees must follow all applicable laws, rules, and regulations at all times. Questions
regarding the applicability or interpretation of any law, rule, or regulation should be
brought to the General Counsel directly, or via the employee’s manager or Human
Resources representative.

Health, Safety, Environment

The Company is committed to providing a safe work environment. Each employee is
responsible for complying with all Company policies and rules regarding health and
safety, protection of the environment, and conservation of natural resources.

Violence, Discrimination, Harassment

All forms of violence, discrimination, and harassment are strictly prohibited.

Fraud
All forms of fraud are prohibited. Fraud is the crime of obtaining money or some other
benefit by deliberate or intentional deception, and may include theft of property, false
statements, or omissions intended to deceive others.

Conflicts of Interest
Employees should avoid any action that is, or could be perceived as, a conflict of interest.
A conflict of interest exists when an employee’s personal interest conflicts with the best
interest of the Company. To minimize the potential for conflicts of interest, employees
are encouraged to disclose any possible conflicts of interest to their direct supervisors or
to the General Counsel.

Gifts and Entertainment

The occasional exchange of modest gifts and entertainment is permitted as a common
business courtesy. Employees may not accept or offer gifts, entertainment, or personal
favors that are intended, or may appear to improperly influence their business decisions

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or judgment. Personal gifts and entertainment of greater than nominal value may not be
given or accepted without prior disclosure to and approval from the employee’s
supervisor. Cash may never be given or accepted.

Bribes and Kickbacks

The giving or receipt of bribes, kickbacks, or similar payments in exchange for business
is strictly prohibited. The Foreign Corrupt Practices Act, and similar laws in other
countries, prohibits offering or giving anything of value, directly or indirectly, to
government officials to obtain or retain business.

Price Fixing
Employees may not discuss current or future pricing of Company products or services
with competitors or other unauthorized persons. External discussions of related subjects,
such as pricing or discounting procedures, terms or conditions of sale or distribution,
volume of production,

Other Guidelines

There are some principles which are there in the Criminal Conflict of Interest Statute. The
conflict of interest statutes prohibit a an employee from engaging in certain types of activities that
would place the employee’s own personal interests above the Government’s interests. According
to this Statute, an employee:

 Is prohibited from acting in an official capacity on a matter in which the employee (or
certain others) has a financial interest;
 May not represent the interests of private parties in matters in which the State is a party
or has an interest;
 Is prohibited after leaving the Government from engaging in certain activities on behalf
of other persons or entities;
 May not accept private compensation for performing official duties.

The standards of conduct regulation establish principles of ethical conduct for employees within
the executive branch. The regulation not only identifies the principles but also provides easy to
understand examples of how the principles apply. The standards of conduct cover such topics as:
 gifts from outside sources;
 gifts between employees;
 conflicting financial interests;
 impartiality in performing official duties;
 seeking other employment;
 misuse of position;
 outside activities;

4. Potential Conflicts

Some activities and beliefs may be legal, but not perceived as ethical. Marriott Corporation
maintains very comprehensive ethics standards to which their employees must abide. Their
Corporate Dress Code is an example. Several years ago, the orientation program at Marriott

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Corporate Headquarters included a presentation on what was and was not considered acceptable
appearance in the company. Some requirements included:

 Women could not wear skirts any shorter than 4 inches above the knee.
 Women could show no bare leg. Either long pants or hose were required at all times.
 Women’s shoulders could not be exposed.
 Men’s hair could not reach their collar, except for religious reasons.
 Men could not wear earrings.

Although these rules were part of company policy, there is nothing illegal about any one of these
items. However, in the Marriott Corporate culture, each was considered unethical.

On the other hand, there are some behaviors which are illegal, but widely perceived as ethical.
One example is taking office supplies from the company supply cabinet for personal use. Legally,
this is considered theft, but many people see no moral or ethical problem and do it anyway.

Another example is buying a copyrighted software program and installing it on multiple

computers. Technically, this violates Federal copyright laws. Yet, the piracy of software is
widespread, even in corporations that consider themselves ethical.

Managers play a vital role in a company's legal and ethical performance. It is in part their
responsibility to ensure that their employees are abiding by State, and Local laws, as well as any
ethical codes established at the company. But most importantly, the managers must provide a
positive example to their employees of proper behavior in light of laws and ethical codes.

Certainly, policies and procedures will never be developed to satisfy everyone, but the
establishment of Codes of Ethics will at least provide a framework for ethical behavior, and allow
customers to evaluate the type of company with whom they are doing business. With this
knowledge, employees and customers must decide whether or not they are willing and able to
conform to these Codes, as well as to the laws that have been enacted. Managers cannot simply
limit their decisions to following the law. They must also consider the ethics of their employees
and customers.