It is important to note that you have to obey the law before you even start talking about ethics. There are people who say that they are ethical and yet they are not obeying the law. The question is are you obeying the law? Is your organization obeying the law of society? We have laws and people have different attitudes toward the law.
Some people feel that they cannot obey the laws, and some feel that they can pick the laws to obey. As individuals and as organizations, we need to obey just laws and we also need to obey unjust laws. Remember, business ethics is about doing the right thing, always believe in ethics and ask yourself in a given situation if is this the right thing to do. The fact that someone or another organization is doing it does not make it the right thing to do.
As an organization, it is very important you have your core values and a good organizational structure in place which must be communicated to your employees. For instance, some organizations are in the habit of doctoring their financial reports and mispresent figures. This is totally unethical because our financial statements as an organization should give a true and fair position, timely and accurate which will enable the users of this information to make informed decisions.
Another example of compliance with the law is the issue of remitting taxes, taxes are used by the government of a country to develop the society and also to provide social amenities. Hence, is it good to pay taxes as an organization? It is very unethical and illegal not to pay taxes or to manipulate your financial statements in order to pay less tax, this is punishable under the law. Also, the habit of preparing different financial statements for different purposes is illegal and unethical. Ethics comes with a cost if you want to think ethically then you have to think about long-term sustainability, which is about doing things in the right way.
Law & Order
Law is the mind’s perception of or imposition of order on the world around it. Law is a social order, it is there to create order in society. We have positive and natural laws.
Natural laws are moral principles that guide human behavior and are derived from the nature of man. As human beings, we know what is wrong and right we could have an ethical dilemma but we know what is right and wrong. The primary stipulation of the natural law is to do good and avoid evil. For instance, stealing is a universal law while positive laws are enacted, they are man-made laws such as codes, statutes, and regulations). Positive laws help to chisel out the uneven edges of selfishness, wickedness, and greed. Without positive laws, there would be chaos and anarchy.
Reasons to obey the law
- It brings about peace and harmony, imagine a world without law there will be chaos.
- With obedience to laws, orderliness is achieved in society.
- The force of the law ensures societal progress.
- When the law is disobeyed, people are harmed.
- The goal of benefitting the common good of all in society should inspire adherence to the law. Ethics is about the common good and not selfish interest.
#MBA 21
