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CMA Intermediate · Business Laws and Ethics · Business Ethics and Emotional Intelligence

A packaged-foods company in Pune discovers that a batch of its product meets every legal labelling requirement but the label could mislead buyers about sugar content. The management decides to relabel it clearly at its own cost, although no law requires this. This decision shows that:

The decision shows that ethics can require more than the law demands. The label was legally compliant, yet the firm relabelled it to avoid misleading customers. Law sets a minimum standard, while ethics reflects moral responsibility, so the two are not identical in scope.

  1. Aethics can demand conduct higher than the minimum required by lawCorrect
  2. Bethics and law are always identical in scope
  3. Clegal compliance alone is the full measure of ethical behaviour
  4. Dethical decisions are made only when a penalty is certain

Explanation

The conduct is legal yet the company chooses a higher standard out of fairness to customers. This shows that ethics can go beyond legal minimums. Saying law and ethics are identical is wrong, since the relabelling was not legally required.

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