SECTION A: Framework of Law (A s1-2)
Monday, 26 August 2013
12:48 p.m.
Part A: The Legal System
The Nature and Function of Law
Law compared to other concepts
law is differentiated from social etiquette and habits because it is enforceable and coercion can be used. 
there are consequences (or legal sanctions) for those who do not obey the law.
consequences include fines and imprisonment.
Law and ethics in business
law is generally obeyed because of consequences (see above).
breach of ethical/moral principles are normally not subject to legal sanctions but there may be overlap.
economic sanctions/repercussions exist for businesses who breach ethical principles.  
adverse consequences include loss of reputation and therefore profit.
Importance of ethics for professions
code of ethics: code of behaviour or guidelines, commonly found in professions.
consequences for breach of ethics include disqualification from practice. 
eg. lawyers are 'struck off the roll'
Interface between law and ethics in business
constraints on business include the Fair Trading Act, advertising standards and other business codes of ethics.
factors such as employment law, environmental law and corporate social responsibility also affect decision makers in business.
FUDICIARY DUTY: the obligation to act in utmost good faith and in the interests of others. 
Notions of fair dealing, trust and confidence: in some cases the law requires us to serve interests of others rather than our own.
eg. Board of Directors work in shareholders' interests
eg. Notifying a party of any viable cost savings (especially when increases own profit)
Our Legal and Business Framework
laws are made by Parliament.
Government departments, executive bodies/agencies administer and enforce law.
eg. Ministries, police.