In this analogy, compliance is the security team; Legal is the insurance team. Legal compliance and ethical responsibility go hand in hand. However, these are different principles. The main difference between legal compliance and ethical responsibility is that compliance with legal regulations must be respected, while ethical responsibility is a choice. For a layman, these two terms are the same, but the fact is that there is a difference between law and ethics. Read the article carefully to overcome your ambiguities. A big thank you to the panel that met to explain the differences between law and ethics. God bless you, all legal norms are standards set out in government laws. All laws and statutes to which lawyers refer are legal norms.
If you`re driving through a big city downtown, you`ll notice parking signs everywhere telling you you can`t park there for a long time, and they`ll cite a city charter or codex. This shows a legal standard. As mentioned earlier, corporate culture plays an important role in the effectiveness of your ethical compliance program. If your employees are afraid to fix leadership issues or are reluctant to challenge management, your compliance program will be wasted. Legal compliance refers to compliance or conduct in accordance with the legal system or legislation of any country, organization, institution, company, etc. Compliance in the legal system means following the laws, rules, or guidelines of an organization/company. Legal compliance therefore means behaving in accordance with these laws and legal obligations. Therefore, the authority of a particular country or organization requires people to follow or adhere to the legal system of that organization. In contrast, compliance focuses on the “let things go right or wrong in the first place” part. There are many ethical and legal examples drawn from practice. The trick to effective compliance and ethics programs is balance. Your programs must be understood and supported by a strong management team.
If your rules, policies, and compliance processes are too complex, cumbersome, or presumptuous, guess what`s going to happen? Your employees will stop following the rules and/or wonder which ones are worth following. The next thing you know is that they work outside of your compliance controls. Often, the term right is juxtaposed with the term ethics, but there is a difference because ethics are the principles that guide a person or society, created to decide what is right or wrong, right or wrong in a given situation. It regulates a person`s behavior or behavior and helps an individual live a good life by applying moral rules and guidelines. People`s quality of life can be improved through legal and ethical standards designed to ensure that no one in society is threatened by terrorism or criminal behaviour. Ethical standards are formulated in accordance with social norms. Government leaders create legal norms in the form of laws and regulations. Ethical standards are based on the human concepts of good and evil, which is why they are important. When it comes to ethical and legal standards, not everything that is legal is always ethical.
The definition of legal norms is a set of principles based on laws promulgated by the government. The laws and laws cited by lawyers are based on the law. Legal regulations are useful because they tell people what they are not allowed to do. Those who break the law can be held liable if legal standards are in place. Excellent analogy. I used the analogy of indulgence as a lifeguard looking over the beach and whistling swimmers who are too far away or jumping to save a tripping swimmer. The search for a missing swimmer by the Coast Guard or the rescue force attempting to revive a drowned swimmer is legal. Legal compliance refers to acting in accordance with the laws of an organization, company, etc., while ethical responsibility is the choice to comply with the code of ethics of the organization, company, etc. This is the main difference between legal compliance and ethical responsibility.
Legal and ethical standards are rules and principles that people in the same society are familiar with. For example, if you live in the United States, familiarize yourself with the legal laws of the country. You will also learn about the ethical standards of American society. It`s so true. I have also repeatedly observed confusion between the legal and compliance functions. Perhaps another important essence for the compliance function would be “going beyond regulatory compliance,” i.e., ethics? If the person does not comply with these rules and regulations, they must also endure penalties. Labor law requires every employee/staff to comply with these laws and their obligations. Some common elements of regulatory compliance for employees are; In this discussion, students will reflect critically on the differences and similarities between legal and ethical norms. Use these questions to stimulate in-depth discussion and reflection on these concepts. As noted in an interview with Michael McMillan, director of ethics and professional standards at the Wall Street Journal`s CFA Institute, your company can have a good compliance program without basing it on strong ethical values. Ethically and legally have different meanings, although they both aim to ensure that people live well.
Ethical means carrying the value of distinguishing between good and bad behavior, while legal means acting in accordance with the law. The law is described as the set of rules created by the government to govern society as a whole. The law is generally accepted, recognized and enforced. It was created with the aim of maintaining social order, peace, justice in society and protecting the general public and its interests. It is produced taking into account ethical principles and moral values. Ethical responsibility is the ability to recognize and act on ethical values according to standards in a particular field or context. Ethical responsibility therefore refers to the responsibility to follow the code of ethics of an organization, institute, company, etc. Ethics are the moral codes followed by people in a country, company, organization, company, etc. Therefore, ethics are rights that are considered morally just. So these are not laws, but obligations.
Moreover, it is a decision of a person to follow this ethic or not. Another similarity is that legal and ethical standards are there to help society as a whole. Legal standards are there to allow authorities to punish offenders so that people have some kind of security. Ethical standards exist for the same reason. Both are there to help people feel safe and prevent people from being hurt by others. Ethical standards, on the other hand, do not necessarily have a legal basis. They are based on the human principles of good and evil. For example, if you are trying to park your car in a parking lot and there is only one parking space left, the only legal standard you must follow is not to exceed the speed limit or collide with another car.
Well, when you see another car about to go to that place, ethical standards tell you not to fight for the place, but to give room to the car that was there first. It is the right thing to do. This is an ethical standard. Imagine being the one who was about to go to town and someone would pass by quickly and park there. You would feel treated unfairly, and yes, you have been wronged, ethically speaking. Similarly, it is ridiculous to think that the law and compliance are the same; These are fundamentally different functions (and different career paths), and being good at one is no guarantee of being good at the other. I`ve always said, “Compliance is what you have to do, legality is what you can do. It summarizes my experience with legal research into smart and completely legal ways to circumvent or conceal compliance issues. Ethics is something to consider when acting, sometimes even by flouting the law. For example, a company has an ethical responsibility to pay its employees the value of their work, such as giving them bonuses and salary increases and creating a respectful workplace without harassment, etc. This is not a legal compliance, but an ethical responsibility, because it is a decision. A strong ethical culture means that the need for compliance initiatives is automatically reduced.
Your company`s values already encourage doing what`s right, which means your employees are acting in the best interests of your customers. Public companies, their management teams and members of their boards of directors could be held personally responsible for certain aspects of compliance and ethics.
