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Legal Aspects of Business Ethics
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Flashcards
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Whistleblower Protection
Legal significance involves providing avenues for reporting illegal or unethical behavior without fear of retaliation. Ethical considerations include the duty to report wrongdoing and protect the public interest.
Fair Competition Law
Legal significance includes antitrust laws to promote healthy market competition. Ethical considerations include competing fairly without resorting to deceitful or monopolistic practices.
Corporate Governance
Legal significance includes the framework for the balance of power among directors, shareholders, and other stakeholders. Ethical considerations involve accountability, transparency, and fairness in corporate decision-making.
Conflict Minerals
Legal significance involves regulations against the use of minerals that finance armed conflicts. Ethical considerations include supply chain diligence and avoiding exploitation.
Product Liability
Legal significance is to hold manufacturers/sellers accountable for placing a defective product into the hands of a consumer. Ethical considerations include consumer safety and honest marketing.
Privacy Law
Legal significance involves protecting personal data collected by businesses. Ethical considerations include respect for an individual’s information and autonomy.
Fiduciary Duties
Legal significance requires that individuals in certain positions act in the best interest of others, often in a trust relationship. Ethical considerations include loyalty, care, and avoiding conflicts of interest.
Diversity and Inclusion
Legal significance includes equal opportunity laws and policies. Ethical considerations involve fostering a diverse workforce that values different perspectives and backgrounds.
Ponzi Schemes
Legal significance includes the illegality of fraudulent investment operations that pay returns to earlier investors with funds from more recent investors. Ethical considerations include financial honesty and the sustainability of business models.
Human Rights in Business
Legal significance includes laws that prohibit businesses from violating human rights. Ethical considerations include the protection of workers’ rights and humane working conditions.
Fair Labor Practices
Legal significance includes regulations ensuring minimum wage and safe working conditions. Ethical considerations involve respect for workers and providing a living wage.
Environmental Law Compliance
Legal significance ensures that businesses adhere to regulations aimed at protecting the environment. Ethical considerations include sustainability and intergenerational equity.
Insider Trading
Legal significance involves regulating unfair advantages in stock trading based on non-public information. Ethical considerations include market fairness and trust.
Bribery and Corruption
Legal significance involves the prohibition of offering, giving, receiving, or soliciting anything of value to influence actions. Ethical considerations include maintaining fairness and integrity in business dealings.
Data Breach Disclosures
Legal significance includes obligations to disclose security breaches of personal data. Ethical considerations involve transparency with customers and mitigating harm from breaches.
Employment at Will
Legal significance allows either the employer or employee to terminate employment at any time. Ethical considerations include fair treatment and job security.
Marketing and Advertising Ethics
Legal significance involves regulations on truth in advertising and protecting consumers from deceptive practices. Ethical considerations include the social responsibility of honest communication and respect for consumer intelligence.
Corporate Social Responsibility (CSR)
Legal significance includes voluntary self-regulation integrated into business models. Ethical considerations involve making decisions that benefit the community and environment, not just shareholders.
Insolvency and Bankruptcy
Legal significance includes providing a process for dealing with debt that cannot be repaid. Ethical considerations include the fair treatment of creditors and the responsible management of financial difficulties.
Insider Reporting Obligations
Legal significance includes the requirement for insiders to report trades of the company’s securities. Ethical considerations include transparency and preventing unfair trading advantages.
Contractual Good Faith
Legal significance is to ensure that parties fulfill their contractual obligations with honesty and fairness. Ethical considerations include acting with integrity and avoiding exploitative practices.
Money Laundering Prevention
Legal significance includes regulations to prevent the disguising of proceeds from illegal activities as legitimate income. Ethical considerations include maintaining the integrity of financial systems.
Consumer Protection
Legal significance involves laws ensuring that consumers are provided with true information and are protected from fraud. Ethical considerations include transparency, fairness, and avoiding misleading practices.
Tax Evasion vs. Avoidance
Legal significance distinguishes between illegal tax evasion and lawful tax avoidance strategies. Ethical considerations include paying a fair share of taxes and transparency with tax practices.
Intellectual Property Rights
Legal significance involves protecting creations of the mind to encourage innovation. Ethical considerations include respecting others' ideas and compensating creators fairly.
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