Module 1: Business Ethics

Civil vs Criminal Parties

Plaintiff brings case in civil law; prosecutor brings case in criminal law.

Civil Purpose

To settle disputes peacefully between private parties.

Criminal Purpose

To maintain societal order, punish blameworthy actions, and deter wrongdoing.

Civil Remedies

Money damages, injunctions, or specific performance.

Criminal Remedies

Fines, jail, or forfeitures.

Key Legal Principle

Law reflects political action; systems differ across nations.

Natural Law

Theorists emphasize rights and duties of both government and governed.

Legal Positivism

Law is the command of a sovereign, regardless of morality.

Sources of US Law

Constitution, statutes, regulations, treaties, and court decisions.

Administrative Agencies

Have only the power granted by legislatures; regulations can have statutory force.

Corporate Ownership

Direct financial stake: managers, directors, shareholders.

Corporate Economic Dependence

Indirect financial reliance: employees, creditors, suppliers, local communities.

Corporate Social Interests

Not financially linked, but concerned with social responsibility: government, media, communities.

Ethical Principle

Legal compliance ≠ ethical behavior; reputation depends on perceived actions.

Ethical Theories

Utilitarianism, Deontology, Social Contract, Virtue Ethics, Conscious Capitalism.

Core Values for Decisions

Trustworthiness, Caring, Respect, Fairness, Responsibility, Citizenship.

Stakeholder Theory

Corporations have obligations to all stakeholders: owners, dependent groups, and social interest groups.