Legal and Ethical Duties

In: Business and Management

Submitted By CPMR
Words 1576
Pages 7
Week#7 MSAC 601
Legal and Ethical Duties of Care
Due: Monday, April 20th, 2014

Abstract This paper addresses the duty of care, duty of loyalty, and ethics of care issues that arise in the workplace. It outlines the nature and scope of care that employers are ethically obligated to give their employees. Characteristics of duty, and how it can be implemented are provided, along with how to deal with issues that arise. Duty of care is the principle that directors and officers of a corporation have in making all decisions in their capacities as corporate fiduciaries, who must act in the same manner as a reasonably prudent person in their position would (Cornell, 2015). Duty of care is considered a business judgment rule which is met as long as the fiduciary executed a reasonably informed, rational judgment in good faith, that didn’t occur with a conflict of interest. A court needs to be able to agree with the business judgment or the plaintiff needs to be able to adequately prove that the standard was not met. Even if the plaintiff can show that the standard was not met, as long as the defendant fiduciary can prove that a fair process was used and a fair outcome resulted from the decision then they can still meet their duty of care.
Duty of loyalty is the principle that directors and officers of a corporation take in making all decisions in their capacities as corporate fiduciaries and must act without personal economic conflict (Cornell, 2015). This principle can be breached when there is self-dealing or taking corporate opportunity. When it comes to employees, the duty of loyalty to employees should be that the best suited employee is the one that gets the advancement, for example.
Ethics of care claims that ethics need to be impartial, unlike traditional ethical theories which assume ethics have to be impartial (Velasquez, 2012). The…...

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