Importance of Business Law and Ethics in Running a Business

This article explains the importance of business law and ethics in regulating commerce, hiring practices, corporate contracts, and sales. It also highlights the difference between business law and ethics, and how they help in maintaining social peace and order. The article covers topics such as the basis of business law, business ethics, code of conduct, accountability, and more.

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Business Law
It is a body of law which
governs the commerce and
business and this also helps in
regulating the hiring practices,
corporate contracts and the
sales and the manufacture of
the consumer goods. It tells
about the laws which are
needed to tell that how a
business is run and formed.
It falls into two main
categories which is the
regulation of the entities by
the laws of the partnership,
company, bankruptcy and
agency and also helps in
regulations of the transactions
done and transactions by the
laws of related fields and
contract.
Is regulated by the federal and
state laws in which the federal
governments govern the
investments and stocks,
environment protection and
the employment laws. The
State laws add to the federal
of laws.
It is made after considering
the moral values and ethical
principles and it is made by
the judicial system in the
country
Front
Importance of Business law
 Helps graduates in
setting the business
 Safeguard the interest
and protect the
general public and
maintains the social
peace, order, justice in
the society
 Guides about both the
civil and criminal laws
 Helps management
professionals in
meeting the business
ethics
 Explains the duties,
rights, liabilities and
obligations of the
parties which are
involved in the
contract of purchases,
sales or in any other
contracts
 Deals with many other
legal aspects like the
laws of land, sea, laws
of guarantee and
indemnity, insurance
laws and many more.
 Helps in getting
comprehension about
the business ethics
and how to run a
proper and authentic
business
Inside left
Business ethics
Basis Business ethics Business law

• It is study
of the
business
practices
and
policies
which deal
with
controversi
al issues
like insider
trading,
CSR,
corporate
governanc
e, bribery
and many
more.
• Ensures a
certain
level of
trust
between
the market
participant
s and the
consumers
for running
the
business
• Examines
the ethical
or moral
problems
which exist
in the
business
environme
nt
• Helps in
maintainin
g better
connection
Determination Is more than legality
and tells about the
way the business
must be done, set of
regulations only and
they are abstract
Tells about the minimum behavior
standards expected of the companies, set of
guidelines and they are published and
expressed in writing. The law is made by the
judicial system.
Code of
conduct
More than code of
conduct and it is the
branch of moral
philosophy which
guides the people for
the conduct done by
humans
Letter of laws or the code of conduct and is
the spirit of law, systematic body of the rule
which governess the actions and whole
society of its individual members
Accountability Created personal
accountability of the
businesses, no
punishments are
given for the ethics
violation and they
don’t have a legal
binding. They tell
people to know what
is wrong or right and
how the act has to be
done.
Creates legal responsibility for all, violation
of law is not allowed and this may result in
punishment and the law does have a legal
binding. The main intention for which this is
made for maintaining social peace and
order and for providing protection to the
citizens.
References
(2018). Retrieved from https://bizfluent.com/about-6303667-business-law-
ethics-.html
Business law. (2018). Retrieved from https://www.britannica.com/topic/business-
law

with the
stakeholde
rs
• Agreed
code of
conduct
and are
adopted by
the people
and tells
about the
standard
as per
which a
person
should
interact
and live
with other
people
Stoltenberg, C. (2008). LAW, REGULATION AND INTERNATIONAL
BUSINESS. American Business Law Journal, 40(3), 445-457. doi: 10.1111/j.1744-
1714.2003.tb01158.x
Trevino, L., & Weaver, G. (1994). Business Ethics/Business Ethics: One Field or
Two?. Business Ethics Quarterly, 4(2), 113. doi: 10.2307/3857484