Chat with AI
Business Ethics 3rd Edition by Laura Hartman
Edition 3ISBN: 978-0072881462Business Ethics 3rd Edition by Laura Hartman
Edition 3ISBN: 978-0072881462 Exercise 2
Why might legal rules be insufficient for fulfilling one's ethical responsibilities? Can you think of cases in which a business person has done something legally right, but ethically wrong? What about the opposite-are there situations in which a businessperson might have acted in a way that was legally wrong but ethically right?
Explanation
Verified
Verified
Some actions can be legally right but ethically wrong. The practice is more so evident in corporate entities. There are professionals who for their personal benefits do things that are legally right but are unethical in nature.
A case where a business person has done something legally right but ethically wrong is explained below:
It was legally right when mangers of the company cheated shareholders by foregoing profitable projects at the expense of company's growth. The managers had fooled the shareholders by not acting in their interests which was their responsibility. So, the act done by the manager was ethically wrong.
Lying about something is legally light but ethically wrong. For example, an analyst lies by projecting wrong financial data of the business growth which is legally right but ethically wrong.
Mr. Martin Shkeli, the founder and CEO of start-up Pharma Company had raised the price of the drug called Daraprim from $13.5 to $750. The move had affected not only the low income groups but also the middle family groups. Mr. M had done ethically wrong but legally right.
A case in which a business person might have acted in a way that was legally wrong but ethically right is mentioned below:
Mr. B, who was a broker at JP Morgan, used to avoid underperforming and unsuitable products for clients acting in their interests. He was being pushed to sell JP Morgan's products than act in client's interest. He reported the issue to his supervisors and colleagues, that was illegal as per firm's legal requirements but at the same time it was ethical to act in the best interest of his clients.
A case where a business person has done something legally right but ethically wrong is explained below:
It was legally right when mangers of the company cheated shareholders by foregoing profitable projects at the expense of company's growth. The managers had fooled the shareholders by not acting in their interests which was their responsibility. So, the act done by the manager was ethically wrong.
Lying about something is legally light but ethically wrong. For example, an analyst lies by projecting wrong financial data of the business growth which is legally right but ethically wrong.
Mr. Martin Shkeli, the founder and CEO of start-up Pharma Company had raised the price of the drug called Daraprim from $13.5 to $750. The move had affected not only the low income groups but also the middle family groups. Mr. M had done ethically wrong but legally right.
A case in which a business person might have acted in a way that was legally wrong but ethically right is mentioned below:
Mr. B, who was a broker at JP Morgan, used to avoid underperforming and unsuitable products for clients acting in their interests. He was being pushed to sell JP Morgan's products than act in client's interest. He reported the issue to his supervisors and colleagues, that was illegal as per firm's legal requirements but at the same time it was ethical to act in the best interest of his clients.
Business Ethics 3rd Edition by Laura Hartman
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
