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Define ethics and explain how the domain of ethics relates to law and free choice.

Managers and types of managers. Level 3 | Management roles and management skills. The skills needed at different management levels. Level 2 | Organizational performance (org-n, effectiveness, efficiency) Level 3 | Bureaucratic Organizations | Administrative Principles | General environment and its dimensions. Level 2 | Four types of corporate cultures. Level | Entrepreneurship, entrepreneur and small business. | Determine sources of financing | Compare and contrast the three levels of strategy in an organization. |


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Ethics is the code of moral principles and values that governs the behavior of people with respect to what is right or wrong. Ethics can be more clearly understood when compared with behaviors governed by laws and by free choice. Exhibit 5.1 illustrates that human behavior falls into 3 categories. The first is codified law, in which values and standards are written into the legal system and enforceable in the courts. In this area, lawmakers set rules that people and corporations must follow in a certain way. The domain of free choice is at the opposite end of the scale and pertains to behavior about which the law has no say and for which an individual or organization enjoys complete freedom. Between these domains lies the area of ethics. This domain has no specific laws, yet it does have standards of conducts base on shared principles and values about moral conduct that guide an individual or company. Many companies and individuals get into trouble with the simplified view that choices are governed by either law or free choice. It leads people to mistakenly assume that if it's not illegal, it must be ethical, as if this third domain didn't exist. A better option is to recognize the domain of ethics and accept moral values as a powerful force for good that can regulate behaviors both inside and outside corporations. As principles of ethics and social responsibility are more widely recognized, companies can use codes of ethics and their corporate cultures to govern behavior, thereby eliminating the need for additional laws and avoiding the problems of unfettered choice.

 


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