The Relationship of Ethics and Law in Governing the Game of Business

Brian H. Kurbjeweit

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The Relationship of Ethics and Law in Governing the Game of Business

Brian H. Kurbjeweit

University of Redlands, USA

Volume 8: 2011, pp. 55-62: ABSTRACT

A concept for teaching business ethics and its relationship with business law is developed. Legal regulations form the essential boundaries of the business game. Many students do not realize the degree to which law is dependent upon ethical actors to achieve its objectives. At least three examples are insightful in this regard: First, the interpretive requirements of legal rules often rely on the ethical character of the interpreting business actor to achieve their objectives. Second, law does not prohibit harms from occurring, it only associates costs with behaviors. Third, law cannot compensate society for non-fungible harms. Legal regulations do not sustain the orderly function of society without ethical business actors.