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Laws, Statutes, Regulations | Description | Examples | Frameworks | Frameworks |
Laws differ from ethical principles and concepts in that laws prescribe the minimally moral while ethical principles and concepts routinely explore higher moral "spaces." | Criminal Law : Applies to individuals; interested party in a criminal trial is society, not the victim. | Civil Law : Torts concern wrongful injury. The objective of a tort is to make the victim "while" after an injury. | US and British law work through a common law system where current decisions are based on past decisions or precedent. | |
Ethical principles challenge and criticize laws by bringing into question their normative content. | Involves proving a mens rea (guilty mind) and actus reus (guilty or law-breaking act) and that the mens rea caused the actus reus. | To prevail in a tort one ust prove (in order of severity) negligence, recklessness, or intent. | The Puerto Rican system of law is based on the Napoleonic code where decisions relate directly to existing law and statute and precedent plays a weaker role. | |
Laws can challenge ethical principles and concepts by raising issues of practicality. Also, as in responsibility theory, the law can structure and inform the moral discussion. | Criminal law does not apply to corporations because they "have no soul to damn and no body to kick" Baron Thurlow | Negligence involves proving that the defendant failed to meet some standard of due care . | Question: How does the statute-based Napoleonic system in PR constrain and enable business practice in relation to other systems such as the British and American common law systems? | |
Contract law concerns the violation of the terms of a contract. |
Market Environment | Description | Examples | Frameworks | Frameworks |
Business takes place within different markets that shape supply, demand, and price. Globalization frequently requires that a business be adept at operating across different markets | Laissez Faire : Each economic unit makes choice based on rational (enlightened) self-interest. (Private ownership of goods.) | Assumptions of a Free Market System : (a) Individual decisions are aggregated. (b) Information flows through price structure. | Recent economic studies of the limits of laissez faire markets : | |
Liberal use made here of notes from Economics class taught by CR Winegardner, University of Toledo, 1971-1972 | Liberal Democratic Socialism : Limited government intervention is needed to improve upon the choice of individual economic units. (Mixture of private and public ownership) | (c) Free association. (d) Absence of force or fraud. (e) Individual agents are rational utility maximizer | (a) Information Asymmetries (as studied by Stiegliz). (b) Monopolies which, in the absence of competition, can dictate standards of price, product and service. | |
Materials also take from Natural Capitalism from Lovins and Hawkings. | Communist, Authoritarian Socialism : The state is in the best position to know what choices and policies are beneficial for the economy as a whole and its component parts. (Public ownership of goods and services) | (f) Governments should adopt a hands-off stance because interference disrupts the ability of markets to produce utility-maximizing conditions.(4,4) | Animal spirits deflect economic decision-making away from perfect utility maximizing. They include confidence, fairness, corruption, money illusion, and stories.(4,5) | |
(5,1) | (5,2) | (5,3) | (5,4) | Ghoshal: bad management theories are destroying good mangement practices as they become self-fulfilling prophecies. Ghoshal is especially critical of agency theory, compliance/punitive approaches to corporate governance, and the theory of human nature he calls "Homo Economicus."(5,5) |
Read also:
OpenStax, Business ethics. OpenStax CNX. Sep 04, 2013 Download for free at http://legacy.cnx.org/content/col10491/1.11
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