Understanding Ethics in Business and Law

Ethics involves moral principles governing behavior. In business and law, it underpins trust and integrity. Surprisingly, business ethics emerged prominently only in the 1970s, following widespread corporate scandals and growing consumer rights movements.

Law is a system of rules enforceable through institutions; ethics reflects personal and societal moral standards. Intriguingly, ethical behavior can extend beyond legal requirements, exemplifying higher principles, such as fairness and justice.

Consequentialism judges actions by outcomes. In law, 'rule utilitarianism' may apply, emphasizing rules that yield the greatest good. This contrasts starkly with 'act utilitarianism', often aligned with business ethics, focusing on the specific act's consequences.

Deontology prioritizes duties over consequences. A surprising fact is that many legal systems are deontologically influenced, with laws often reflecting moral duties, such as the duty not to steal, irrespective of the consequences.

Virtue ethics emphasizes character. Aristotle's virtue ethics surprisingly extends into modern boardrooms, advocating for leadership traits such as courage and temperance, and influencing ethical corporate cultures.

CSR goes beyond legal compliance, addressing ethical expectations of society. Interestingly, the idea isn't new; it traces back to the 1950s. Today, firms may adopt CSR practices not just out of moral duty but also for competitive advantage.

Globalization challenges uniform ethical standards. Remarkably, the United Nations Global Compact, initiated in 2000, guides businesses worldwide on human rights, labor, environment, and anti-corruption, striving for a universally accepted ethical framework.