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04/19/231
Chapter 2 – Ethics in Our Law
Business Law
Mr. Smith
04/19/232
Ethics--
Deciding what is right or wrong in a _________, _________ manner
04/19/233
Element 1 – Decision about right or wrong action– The decision ______ affect you or ______ in some
significant way
Example—Should life support be terminated on a terminally ill patient?
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Element 2 – Decision is reasoned
Based on reason; NOT _________
Reason usually based on a ________ authority that provides consistency
– Law, religious text
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Element 3 – Decision is impartial
Impartiality—the same ethical standards apply to ____________
– We must balance our self interest with the interests of others
– Ethics does not value one person or group ______ than another
– Each person is an individual and should receive equal respect
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Definition: ethical ________ used in making business decisions
– Often jeopardized because of ________ MAXIMIZATION: owners may be more concerned with cutting pay and jobs to save $$$ to produce short term profits than with the effect the loss of a job has on the individual.
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Rule-Based Reasoning vs. Consequence Based Reasoning
Rule Based Reasoning—acts are either _______ or _______
– Ex: lying is always bad & telling the truth is always right
You cannot justify an action by showing that it produces good _____________
– Ex: lying cannot be justified by saying that it produces good consequences
Consequence Based Reasoning—rightness or wrongness based _______ on the results of an action
– Ex: Lying usually produces bad consequences
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Rule Based Reasoning (Fundamental Ethical Rules)
The acts ____________ are judged as right or wrong
The standard for judging comes from:– Recognized __________ (law or religion)– Human ___________
Universalizing—picturing in your own mind everyone in the world doing an action; is the action irrational, illogical or self-defeating?
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Steps in Making a Decision Based on Consequences
Step 1 – Look at _______ ways to alter the current situation
Step 2 – Forecast the consequences of each alternative
Step 3 – Evaluate the consequences that will result in the ___________ good– The Good: primary goal toward which human life
should be judged (basic goals—love, beauty, knowledge, pleasure, power, truth, liberty, justice)
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Lesson 2-3: How Ethics is Expressed in Our Laws
Our laws reflect _______ based on consequences
– Majority rule—elected representatives must vote for laws that are acceptable to the _________ of the people they represent
Laws are good/right when they affect the majority of the people positively
Laws are wrong when they affect the majority negatively
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Our Laws Reflect Rule-Based Reasoning
Laws of the majority sometimes conflict with ______ rights: the majority may sometimes benefit from unjust laws– Example: slavery. A majority of the people would
benefit in receiving free labor; however, the human rights of the minority would be violated and would be inconsistent with their civil rights (personal, human rights recognized and guaranteed by our Constitution
Freedom of religion, speech, press, assembly, etc.
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Other Ethical Goals Reflected in our Laws
Arbitrary Rule or Law
– Not based on _______ rule– Not based on ________– Based on CONSISTENCY– These rules MUST be communicated in advance
– See What’s Your Verdict on p. 27
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WHY WE OBEY LAWS
Ethical ______ demands it– Consequence based—when
laws are violated, more people are injured than benefited
– Rule based—if we agree to obey laws, we are breaking our promise
We agree to obey laws
To avoid punishment– Fines– Jail time– Fines & Jail combined– Death
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Other Punishments for Committing Crimes OUTSIDE the Judicial System
_______ from jobs that require security clearance
Failure to qualify for ________ bond—insurance policy that pays the employer money in the case of theft by employees
_______ professions for those convicted of serious crimes– Doctors, lawyers, CPA’s
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Civil Disobedience
Open, _______ violation of a law to protest its alleged injustice
Ethical when:– A written law is in _______ with ethical reasoning– No effective political methods are available to correct the law– Non-violent– Does not advance one’s __________ self interest– Public– Willing to accept the punishment for violating the law
Example—Martin Luther King, Jr.
04/19/2316
Scofflaw
People who break the law out of _________ for the law– Out for self-benefit– Expect to _______ the punishment