Project 2 Southern New Hampshire University BUS-206; Business Law 1 Dr. Michael Shenkman April 7, 2023
Ethics is our code of conduct for how we perceive human behavior as right or wrong. It guides how we make decisions and guides our actions. Ethics can be thought of as our system of principles or moral values that help us decide what is good or bad. They help us make choices that align with our values and guide our behavior to be how we are supposed to act. When it comes to ethics and the law, they both play a role in shaping our behaviors but ethics most of the time extend beyond laws. There are differences between law and ethics. The law is a systematic body of rules that govern our society and guarantee our freedoms. It aims to maintain social order, peace, justice, and protects the public's interest. Ethics on the other hand are shaped by our norms such as individual, legal, and professional and are based on our moral principles and values. Laws are legally binding and violating them could result in penalties such as fines and imprisonment. Although ethics are not legally binding, doing unethical practices damages a company or person's reputation and trustworthiness. Corporate social responsibility is a company's commitment to conduct business that has a positive impact on society and environment. This also includes the expectations that communities impose on companies that are doing business where they are. Ethical business practices include doing the right thing even when a company's profits are not maximized. Business operations become centered around moral principles, integrity, and honesty. Corporate social responsibility ensures that a company will operate ethically by doing practices that help to sustain the environment which benefits the community. Ethical business practices and corporate social responsibility both create a foundation that allows a company to act and conduct their business with accountability and responsibly. According to Carroll et al. (2012) "As a concept, it is the idea that the corporation exists in society and has rights and responsibilities as a member (or citizen) of that society."
For this security breach if there is no plan put in place to report this the company could face ethical and legal implications that could harm the company. If the company decides to not let the affected customers know about the breach, ethically it could seem that the company does not want to take responsibility for informing them. It is also a violation of protecting the customer's private information and these customers could become vulnerable to possible future financial losses. The company will seem untrustworthy, and it will damage the company's reputation by seeming negligent and incompetent. Legally the company can face consequences that could include lawsuits, fines, or even jailtime for some employees. Customers will be able to file complaints against the company or sue them for damages. Not notifying customers about the breach will make this company seem that they are not thinking morally about the importance of its customers