02. Keeping money that someone has dropped is legal, but again, many would find it unethical. What a great article. I am currently preparing an academic essay on ethical practice in real estate (in New Zealand). In this industry, there are a number of issues that are legal, but certainly anything but ethical. On the contrary, there are sometimes actions that I would consider preferable from an ethical point of view, but not really legal. Individual attribution Ethical but illegal issue .docx Norman, in a way, you are making an even stronger argument. As I understand it, Chris pointed out that when we learn new things about toxins, drugs and the like, we should also apply the new knowledge to legislation. And by being stubborn and saying that if it`s legal, it`s ethical, then no new information can be taken into account in the legislation. His view, Norman, seems more along the lines of saying that laws can be completely wrong. The difference is that the people who made laws that allowed segregation made them based on ethical error, while the people who made the laws that allowed the use of unknown toxins simply had no information at the time. Anyway, the point is the same, but I think Norman`s point really gives the final blow to any argument that the law is automatically ethical. Bethany McLean: Hal, it sounds like what you`re describing is a system that uses the legal system as both a weapon and a shield.
Is that fair? To what extent is what you write actually illegal, and to what extent is this kind of thing, which is in fact completely legal, but not in the best interests of all of us? For example, a tribal system and a state-level society usually have different opinions about what is ethical. However, the differences between people mean that there will always be a gap between what is legal and what is ethical. Ethical, but not legal and legal, but not ethical behavior. In the case of an illegal act, the decision factor is the law. For an unethical act, the decisive means is man`s own conscience. An unethical act may violate morality, but not the law. An illegal act is always unethical, while an unethical act may or may not be illegal. Just because something is legal doesn`t make it ethical. You may think it`s obvious, but it`s not, as evidenced by the fact that a former student recently told me that his finance professor specifically told him that if something is legal, it`s ethical. Point. Of course, the student – my student – knew better and told me the story by rolling his eyes. Think about it for a moment: would you really want all ethical obligations to be turned into laws? This would mean a large number of new laws, a huge enforcement problem and an extremely intrusive legal system.
(Example: Imagine your friend asks, “What do you think of my new boyfriend?” Imagine lying and saying, “He`s awesome!” This lie is probably unethical. But do you think he should break the law? Should you be thrown in jail for that?) 04. It may be illegal not to fulfill a contract, but it can be ethical for a number of logical reasons. Home > FAQ > What is the difference between unethical and illegal business practices? But this reasoning is incomplete at best, leaving open another line of reasoning, which applies even in competing fields, and which should really lead an issue to the heart of the nonsense “legal = ethical”. “The language used by participants in my book was `legal but morally reprehensible,`” said Kimberly Kay Hoang, associate professor in the Department of Sociology and College and director of the Global Studies Program. She is also the author of the forthcoming book Spiderweb Capitalism: How Global Elites Exploit Frontier Markets (2022). Hal Weitzman: I think it`s both. I actually think that what you just said is exactly what you just said.
I`ve always thought, I mean, there`s a lot of academic literature in law, in jurisprudence, on whether there`s an upward or downward race. I am not an expert on this. But I think what Kimberly said sums it up perfectly. It`s both because they measure different things. The race to the rise usually measures returns, and the race to the bottom usually measures standards. They are two different things. In fact, I could have worse standards and that will allow me to pay better dividends to shareholders, right? I mean, there`s been research on the Delaware effect, the Delaware dividend, and you can, I mean, if you think about it at a very basic level, the less you care about management and let them do their business, and the less control there is, the more opportunities there are to return capital to shareholders. Because you will not get involved in explaining to the legislator what the company code is. Illegal business practices are much more obvious to label.
If it violates the law, it is illegal and unethical and therefore carries serious consequences such as jail time and heavy fines. So we assume that it is a binary system. You are either an activist or a shareholder, but today there are stakeholders. What is the role of stakeholders? What is the place of workers? What is the place of the environment? What is the general place of society? Well, they are not represented. They are not part of the rules. So, on the one hand, companies tell us that they want a social purpose; They want to be judged on their social purpose. But they do not integrate that into the legal infrastructure they put in place, by which we can judge companies. In fact, they do not even allow these lawyers to come and comment, observe or hear what rules are written. They therefore allow a certain standard to prevail.
I don`t know if it`s a race to the bottom, but governance is obviously not as tight as it could be, because they`re cutting the political part, which is the most annoying part for them. Marketing tactics can draw a fine line between persuasion and manipulation, and this is another area where subjective ethics come into play. Some marketing tactics can take advantage of uneducated segments of the population, which can be completely legal, while being despised across the market. For example, prior to the 2009 Credit Card Act, banks could entice teens to open credit accounts with the promise of financial freedom, regardless of the youth`s ability to pay off the debt at high interest rates. To understand the difference between something that is “illegal” or “unethical,” we need to understand what those terms mean. “Unethical” defined as something that is morally reprehensible, while something that is “illegal” means that it is against the law. Please explain what you think is the difference. These words are used differently by different people and in different literatures. In at least one traditional use, they are interchangeable.
And anyway, I don`t know of any use of the term “ethics,” according to which I would be wrong to say that lying is unethical. 05. Abortion is legal in some places, but many consider it unethical. Hal Weitzman: Yes. I mean, it`s similar to what you`ve written over the years, because a lot of what you`ve written about, Bethany, one part is completely illegal and misleading, and another part is pretty gray, right? Even in the case of Enron, it is partly fraud, and others are not as clear. It`s funny when I was a financial journalist when someone said to me, “It`s completely legal,” my ears immediately listened because I knew there was a story there, because it`s a terrible justification. We saw this if you remember the Panama Papers, which were the first – since then we`ve had an even bigger leak, the Pandora Papers, which were oddly enough of a wet squid, maybe because everyone is bored and knows that people are hiding money everywhere – but the Panama Papers were a great success. The ultimate refutation lies in the hidden circularity of the finance professor`s argument, which we can illuminate by reflecting on the process by which something is made illegal. Rather, I believe that ethics and law can be represented as a two-by-two matrix – there are even interesting practices of practices that are ethical but illegal! Illegal behaviour is much easier to detect because of the clean side of the law.