Business Ethics And Law : Legal And Ethical Issues

1213 Words May 8th, 2016 5 Pages
Legal and Ethical Issues in Business
Business ethics and law are fundamental principles that guide the way businesses operate. Business ethics are decided and formed by each company and differ from one company to another. They are the core values that business owners, managers, and employees use to conduct their daily operations. Acting in an ethical way consists of distinguishing between right and wrong and choosing what is right. Business law is all rules and regulations that all businesses should be in compliance with. These laws and regulations indicate how to form and run a business in compliance to state, federal, or local laws. There are repercussions when businesses are found violating laws and regulations, which can include but not limited to fines, incarceration, or seizure of one’s business.
Business ethics and laws are used in the workplace daily. Both are very important in running a successful business, but one must identify the difference among them. For instance, businesses have to keep in mind that some things may be ethical, but it doesn’t make it legal and vice versa. Ethics comes from within a person’s moral values on how one should or should not act. Laws are created by governments to protect the citizens. James (2016) insists “both of them are important from maintaining peace and stability in a society” (para 1). Legal and ethical issues go hand in hand within a business. Laws are made to keep those ethical morals in place. Business owners need to…
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