1. Starting with Business Law; Finishing with Business Ethics

Starting with Business Law; Finishing with Business Ethics

Introduction

Read the overview below and complete the activities that follow.

When a firm hires new employees, it must obey certain laws. At the same time, employment decisions affect the welfare of a huge number of people. Who is and is not hired therefore becomes an ethical question. Businesses have to balance these decisions among the interests of their many stakeholders, as well as their ethical codes

CONCEPT REVIEW:

The law provides a strong beginning for shaping ethical business decisions. The social responsibility of a firm requires it to obey both the law and the ethical guidelines the firm has embraced.

Case:

Read the case below and answer the questions provided.

The CoverAll Carpet Company (not a real firm) recently posted job vacancy notices in the local paper for five high-paying skilled jobs. The employment law in this state requires that all applicants be hired on the basis of their demonstrated productivity for the firm that hires them.

Ten unemployed members of the community appear on the day of the job interviews. All of them have the demonstrated ability to do the work CoverAll will expect from anyone it hires for this job. Three of them are recent additions to the community. They left their homes in California after a mudslide destroyed everything they had. Two of the job applicants are relatives of existing employees of Coverall. One applicant needs the job because her daughter was just diagnosed with leukemia.