Function and Role of Law in Business and Society

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Functions and Roles of Law in Business and Society
Patricia Hackley
LAW 421
April 15, 2013
C. J. Hughes

Abstract
A review of the Constitution, the Bill of Rights and the Code of Conduct will be discussed for a better understanding of it role in business.

Businesses have operated for years but the interest lies in the development of and reasons for code of conduct; with the Constitution and Bill of Rights identifying the rights of the companies and the people.

According to CFA Institute, “Code of Ethics were first created in the 1960’s”. It is the result of the Civil Rights Act of 1964 that promoted businesses to hire equal opportunity officers, to ensure compliance with the new law (“A History of Business Ethics”, 2012). The U. S. Occupational Safety and Health Act of 1970 enforced the mandates and the Environmental Protection Act forced businesses to internalize the cost of discharging toxic effluent (Ibid).

In 1977, The U. S. Government enacted the Foreign Corrupt Practices Act to control actions of U. S. corporations overseas as a result of a series of scandals involving bribery. In an attempt to address public outcry to get out of South Africa, a group of U. S. companies adopted the Sullivan Principles. It was also hoped that South Africa would change due to these principles. By 1980, most companies in South Africa had started adopting ethical codes and training their employees (Ibid).

The Responsible Care was developed as a result of a chemical disaster in India in 1984 and in 1986, the Defense Industry Initiative on Business Ethics and Conduct had written code of ethics, provided training to employees, established monitoring systems, shared best practices and became accountable to the public, due to defense contract irregularities. The 1991 U. S, Federal Sentencing Guidelines for Corporations provided incentives to corporation that incorporated ethical structures. If the company could show they had taken steps to address the...
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