Many people have always confused the meanings of morality, ethics, and law as they used it interchangeably in most occasions. We first need to understand what the three terms are to be able to distinguish their relationships and applicability. According to Yates (2012), “law consists of rules with penalties that are likely to be enforced either by the courts or by other agents of government” (p. 2). On the other hand, morality is concerned with the principles of right and wrong conduct and determining the goodness or badness of human character. For instance, it is morally wrong for any business to steal from its customers by charging higher prices to make exceptional profits. Ethics refers to the values, principles, and purpose that shape an individual’s behavior or decisions. Examples of ethical principles in business include respect to stakeholders, honesty, loyalty, and fairness.
It is important to note that the law does not define the ethical behavior of an individual or a business; therefore, law can never be a test. An individual or business needs to go beyond the law to ensure that the right conducts or behaviors are evident from their activities or practices. In other words, to determine what ethical behavior is without depending on the law as the test, it is necessary to be aware of what is right and wrong by following the moral codes of conduct which a business or a person needs to conform to.
Reference
Yates, R. A. (2012). Legal Fundamentals for Canadian Business. Pearson Education Canada.