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Ethics in Law for Business

Employment-at-Will. While government employees and business, pollute the environment. What is the ethical
unionized workers enjoy more job protection, most position of a chemical company in spending money lob-
employees in the United States are employed at will. The bying the public and Congress on new laws and enforce-
law allows them to be fired for cause or for no cause. A ment of existing ones? Automobiles still pollute the
boss, under the law, may fire even a long-term employee atmosphere, although much less than in the past. Gasohol
simply because the boss does not like the person. In most is a motor fuel made in part from ethanol, which is made
other industrialized countries employees, after a probation- from corn, but it is more expensive than gasoline. What
ary period, can be fired only for cause (e.g. they are incom- are the ethical issues surrounding ethanol?
petent or steal company property). U.S. law seems to be
less ethical. What arguments can be made for U.S. law? Global warming is an important environmental issue.
According to some, our planet is gradually growing
warmer due to pollutants. This could end or radically
Employment Discrimination Law. The United States
made a major commitment to putting ethics into law change life on earth. Others say that the earth naturally
through the Civil Rights Act of 1964, which forbids warms and cools and that there is no evidence to suggest
employment discrimination based on race, religion, creed, that there has been any significant change because of pol-
national origin, or sex. Other categories, including age lution. What should be the ethical position of citizens,
and disability status, have been added since then. Most especially companies that stand to either lose or gain by
people agree that the United States had great problems of governmental measures taken?
employment discrimination and that today, despite sub- As with civil rights law, many countries have less
stantial progress, many problems remain. There are many stringent laws than the United States regarding environ-
ethical questions. Virtually everyone would agree that it is mental issues. U.S. companies with operations in these
unethical to discriminate both because it is wrong and countries can pollute much more than in the United
because it violates the law. Should the law compel busi- States. It is also an important point that pollution does
nesses to be ethical and not discriminate?
not respect national borders. What are the ethical norms
that a company should consider in making its policy?
Jobs Overseas. Since almost everyone agrees the U.S. civil
rights laws serve an ethical purpose, should American
CONCLUSIONS
business voluntarily implement these laws as policy in
their operations in foreign countries that do not have sim- Aristotle said that deciding what is the best ethical course
ilar laws? is not easy. Reasonable people will disagree on what is
Wages are substantially lower in many countries, such right. This article is intended to raise questions, not to
as Mexico, than in the United States. Many companies provide answers. Many more issues of ethics in law for
have moved all or part of their operations to Mexico. The business could be considered. The ultimate, overreaching
law allows this. What ethical obligation does a company questions are: What is an ethical company and to what
have to U.S. workers who in many cases will not find com- extent should law require ethics?
parable employment? What do managers ethically owe to
workers and what to the shareholders or owners? What, SEE ALSO Law in Business
then, are the ethical obligations to potential Mexican
workers who may be eager to take the jobs even though the BIBLIOGRAPHY
pay, benefits, and protection are well below U.S. standards? Bagley, Constance E., and Savage, Diane W. (2006). Managers
This, in fact, is a whole area of ethical discussion. What and the Legal Environment: Strategies for the 21st Century (5th
standards of employment (pay, benefits, job protection) ed.). Mason, OH: Thomson/West.
should U.S. companies and consumers demand when we Corley, Robert N. (1999). The Legal and Regulatory Environment
make or buy goods produced in a foreign country? of Business (11th ed.). New York: Irwin/McGraw-Hill.
Cheeseman, Henry R. (2000). Contemporary Business Law (3rd
ed.). Upper Saddle River, NJ: Prentice-Hall.
ENVIRONMENT
Mann, Richard A., Roberts, Barry S., and Smith, Len Y. (2000).
Along with civil rights, the environmental movement has
Smith and Roberson’s Business Law (11th ed.). Australia;
been another great crusade. The purpose of environmen-
Cincinnati, OH: West Legal Studies in Business.
talism is to protect the planet not only for ourselves but
McGuire, Charles. (1998). The Legal Environment of Business
also for those who come after us. Compliance with envi-
(3rd ed.). Dubuque, IA: Kendall/Hunt Publishing Company.
ronmental law would seem a basic ethical norm. How far
should environmental law go? Chemical companies that
make products we all use everyday, by the nature of their Carson Varner

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