The difference between business ethics and business law

Business law and business ethics are not necessarily the same thing. I am thinking of mentioning two examples from real life where the relationship between morality and law can be discussed.

(The examples below is from Sweden and treated under Swedish law)

The first example is about a cooperation agreement. In the agreement a bid was accepted both orally and written without any objections. Later on however, the bidder claims that the price is too low that there had been a misunderstanding regarding the VAT. The bidder argued that the price would be exclusive of VAT, but that it was mistakenly expressed inclusive of VAT in the tender.

The bidder would not fulfill the agreement, unless the other party accepts the adjustment. There is not much the other party really can do. To process claims for damage would hardly be worthwhile unless substantial expenditure has been due to this. In this case, the bidder thus breaks the entered agreement but will probably go away without any cost, but with an irritated adversary. This is legally incorrect and probably negative businesswise, but with a short-term positive economic impact on the bidder. Dissatisfied customers are thus hardly a recipe for success in the long run. Breaking contracts is normally considered both legally and morally wrong. What do you think?

The second example concerns a couple who cohabited. The man is formally written on the property while the woman is on the loan at the bank. Mortgages on the property is not available as collateral in this case, which will prove to be a big mistake.

Unexpectedly and suddenly dies the husband. Legally, his parents inherit the property because no direct heirs exist. This was also before the cohabitation law. The parents refuse to contribute to solving the loan at the bank, and unfortunately there is nothing the woman can do. She stands on a loan in the bank but without tenure rights. Parents have in this case acted entirely legally correct, but on the other hand morally questionable. What do you think?

Business ethics and business law is as said not always the same.

Regards
Lars Larsson
Fellow and Accredited Associate
of the Institute for Independent business

Jeff Mowatt

jeffmowatt-232748

The difference between business ethics and business law

Thanks James for you input on my dilemma. There;s another dimension to this that reflects in an EU consultation where the concepts being proposed derive from my submission to an earlier public consultation for the European Citizens Consultation. It is from the perspective of an ethical model of business that I write, as my blog You, We, Me, Ethics and People-Centered Economics illustrates.

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Richard Evans

richardevansuk

The difference between business ethics and business law

Lars, There is no difference, you get to screw you work boss either way. Best Regards Richard Evans "Nobody can go back and start a new beginning, but anyone can start today and make a new ending." - www.no-more-9to5.com

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James Young

jamesyoung6-657407

The difference between business ethics and business law

1) The case about the bidder refusing to pay for the item that he had the winning bid. The contract was for the winning bid and if the ad stated that the VAT was to be added to the amount bid. The bidder would be legally obligated to pay the bid amount plus VAT. If the ad did not stated anything about the VAT, the bidder would pay the bid amount only. The bidder in both cases owes the bid amount for the item being auctioned. The Swedish case of the property could have been solved by the parents selling the property to the wife for 7 kronas. 2) The plan for the orphans was changed from the original which takes the person's right for compensation away unless the initial document can be proven to used for a partial compensation, not full compensation. This happens in patents when one person modifies an existing patent but the first person wants compensated for the royalty for the inatial patent. 3)The course that was quoted at 30 has to be honored for the misquote.price. All these replies are based on my knowledge of The U.S. Business Laws of 1974. The laws might have been changed from the time of my college law course.

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Gareth Kane

garethkane-119606

The difference between business ethics and business law

Going back to business ethics - ethics breed trust which in turn attracts customers. My partner recently wanted to sign up to some classes and was quoted £30 a shot. When she tried to book, they said "Sorry, we made a mistake, that rate is for current clients, we'd have to charge you £39." My partner told them she didn't want to book anymore. They said "is it too expensive?", she replied "No, I just don't trust you anymore." I have misquoted for services and have delivered at the price I (mis)quoted. I see that as a key ethical principle - that people can take me at my word. G Gareth Kane terra infirma ltd - environmental and sustainability consultants Read my new book: The Green Executive Follow me on Twitter, Facebook and LinkedIn

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Jeff Mowatt

jeffmowatt-232748

The difference between business ethics and business law

Lars, I was executor of a friend's will in England when I discovered that his home was not his to sell. He'd taken out the mortgage with a partner who stayed less than an year but remained on the mortgage documents. As his 'surviving partner' she was entitled to all, whereas his wife and young child were entitled to nothing. I have no legal knowledge and advised them to get free legal aid, with which she was able to negotiate for part of the money. Now how abouth this real life example. A business with a social objective creates a proposal for a development initiative to assist children in orphanages. He approaches government and other for support and they show no interest, but unknown to him they create replica of the plan where the children are omitted as the social objective. Public funding is then used to deploy this plan and engage consultants. The author of the original plan lives in frugal conditions and has no medical insurance. He has a serious illness and dies because he cannot afford the treatment. So his work is not deployed for the intended purpose and the children remain in a vulnerable situation where many die from malnutrition due to neglect. Could a lawyer help ensure that his death and our intellectual property are compensated such that we can fund the work he gave his life for? Jeff

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Stella Holman "The Connector"

stellaholman_theconnector

The difference between business ethics and business law

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