Business Ethics and Corporate Governance

In this chapter, we discussed law, moral standards, the formation of law and problems associated while formulating law. Law can be defined as a set of rules, established to govern individual behavior.

It also provides a basis for decision making when one is confronted with an ethical dilemma. Moral standards, however, only deal with “right” and “wrong” behavior. The moral standards and the law are related to each other since they deal with certain common issues. This chapter also discusses the formulation of laws. Four processes are involved in the formulation of laws: individual, group, society and political.