Are code of ethics legally binding?
Are codes of ethics required by law? Companies generally aren't required by law to have codes of ethics. However, the Sarbanes-Oxley Act (SOX) of 2002 requires corporations with publicly traded stock to publish their codes of ethics if they exist.
Not all laws may be ethical and not all ethical decisions are legal! Healthcare professionals may sometimes face a dilemma in balancing the two domains of ethics and law. Ethics is the aspect of philosophy that addresses questions about human conduct.
Most codes fail because they raise unrealistic expectations or they try to control too much. Codes that require excessive reporting and tracking can produce cynicism within the organization and among the public. The pursuit of absolute integrity can be a fool's pursuit if the result is organizational ineffectiveness.
legal standards dilemma, a decision can be ethical but violate certain laws. A common example of this is “whistleblowing,” or an individual's disclosure of dishonest, corrupt or illegal activity.
The laws set minimum standards of ethical behavior. Ethical people go beyond the laws. Although ethical people always try to be law-abiding, there may be instances where their sense of ethics tells them it is best not to follow the law. These situations are rare and should be based on sound ethical reasons.
Similarly, actions can be ethically wrong but legally correct. For example: Slave trade was legal in America earlier. But it is an unethical act.
Ethics comes from people's awareness of what is right and wrong. Laws are enforced by governments to their people. Ethics are moral codes that every person must conform to. Laws are codifications of ethics meant to regulate society.
Ethics are enforced through people's awareness of what is right and wrong. Laws are enforced by governments to its people. Ethics does not carry any direct and codified punishment to anyone who violates it. However, the law will punish anyone who happens to violate it.
Breaking the code of ethics can result in termination or dismissal from the organization. A code of ethics is important because it clearly lays out the rules for behavior and provides the groundwork for a preemptive warning.
The range of penalties includes censure, removal from office, permanent disqualification from holding any state position, restitution, decades in prison, and fines up into the hundreds of thousands of dollars. Not all ethics violations are treated equally.