Reflect on the Difference between Ethical and Legal Requirements That Apply to Bankers

This case involved John Moore, who underwent a splenectomy at the University of California, Los Angeles (UCLA) Medical Center in 1976. Between 1976 and 1983, John Golde, the medical supervisor of Moore`s case, in consultation with a researcher, Shirley Quann, repeatedly asked Moore to return to UCLA for blood tests. On April 11, 1983, Golde asked Moore to sign a consent form authorizing Golde to analyze blood samples. Golde and Quann used the biological material extracted from Moore, which was “of great value to a number of commercial and scientific enterprises,” but did not inform Moore.56 Golde and Quann developed a cell line from Moore`s T cells and patented that cell line (Registry Number 4,438,032). Between 1984 and 1990, the patent grossed more than three billion dollars.57 Upon learning of this, Moore sued Golde, UCLA, and two biotech companies, claiming the right to share the product of the biological material extracted from it. California Supreme Court justices were divided, but they dismissed Moore`s lawsuit on three main grounds: the lack of precedents to support Moore`s claims; California legislation on the disposal of human tissue; and the fact that the patented cells differed from Moore`s and therefore could no longer be considered his property.58 Companies have an ethical responsibility and are not protected by limited liability against the consequences of their actions. A company`s balance sheet and ethics affect its reputation and ensure long-term success or failure. Financial advisors registered with the Securities and Exchange Commission or a government regulator are bound by a code of ethics known as fiduciary duty. This is a legal obligation and also a code of loyalty that obliges them to act in the best interests of their clients. Documents dealing with general ethical issues often offer useful suggestions for addressing not only general problems, but also more specific situations on a case-by-case basis. However, in order to be able to respond to specific circumstances, it is important to be able to refer to general operational guidelines.

Cord blood that is not suitable for transplantation may be disposed of as waste, used for research purposes or for drug development from blood.19 For various reasons such as infection, contamination or deterioration, it may be necessary to dispose of the units of blood. If disposal is not necessary for any reason, disposal as waste is a waste of potentially useful biological material.20 The possibility of using umbilical cord blood for research purposes must be clearly included in the information before consent is obtained. The issue of using biological samples stored in biobanks for research purposes has been widely discussed in the literature21 and is not addressed in this article. Companies of all sizes rely on their leaders to set a standard of ethical behavior for other employees. When directors adhere to the Code of Ethics, it sends the message that universal compliance is expected of every employee. The principle that the human body and its parts as such cannot be an object of commercialization or a source of profit is enshrined in many authoritative documents. One of the most important is the Council of Europe Convention for the Protection of Human Rights and Dignity of the Human Being in the Application of Biology and Medicine: Convention on Human Rights and Biomedicine42, which is a cornerstone of bioethics and biorights.43 Article 21 of the Convention, entitled “Prohibition of Financial Gain”, states: “The human body and its parts cannot bring any financial gain as such. Section 22, under the heading “Removal of an Removed Part of the Human Body,” states: A code of ethics is a guide to principles designed to help professionals conduct their business with honesty and integrity. A code of ethics can describe the mission and values of the company or organization, how professionals should approach problems, ethical principles based on the organization`s core values, and the standards to which the professional is bound. Companies and business organizations usually have some sort of code of ethics that their employees or members should follow. Violation of the Code of Ethics may result in dismissal or dismissal from the organization. A code of ethics is important because it clearly sets out the rules of conduct and forms the basis for a preventive warning.

Thus, having realized that law deals and should deal in depth with ethics, we can now examine the relationship between law and a culture of ethics. We are also ready to finally clarify our question and ask ourselves whether the law plays a role in creating an ethical culture in business. And here, the answer is less clear than before, since the law plays only a limited role. The law will provide regulators and regulators with a fixed target and will often set the minimum requirements for organizations that need to be set up. The law will also give prosecutors the power to punish a violation. However, the law will not penetrate into the realm of business decisions and will not provide interested parties with a detailed manual. This role should be played by regulation, self-regulation and private bodies located between the public and private sectors. And in banking, I think that`s the space that BSB can fill. Returning to the dilemma between ethical and legal norms, a decision may be ethical, but it may violate certain laws. A common example of this is the “whistleblowing” or disclosure of dishonest, corrupt or illegal activities by a person.

While it may be ethical to report such activities, it may violate organizational policies and therefore be considered illegal. It is therefore clear that the general guidelines applicable to all situations are not feasible. Some general criteria are certainly valid as a general rule (e.g. consent based on adequate information), but other, more specific considerations should be applied on a case-by-case basis. The role of the banker is a trusting responsibility. Those who ask us to take care of their money trust us, and we have a duty to lend that money responsibly. Ethics refers to moral action that takes into account all parties involved in a given situation and strives to benefit from it. Before making an ethical decision, a person must be able to identify and label the possible unethical course of action. Ethical behavior also involves striving to achieve the best results for the investment professional, the client and the firm.

Some codes of conduct contain language that addresses both compliance and values. For example, a food chain may create a code of conduct that prioritizes the company`s commitment to health and safety regulations over financial gain. This food chain could also contain a declaration of refusal to contract with suppliers who feed farm animals with hormones or raise animals in inhumane living conditions. In the investment industry, setting legal standards is much simpler than ethical standards. To act legally is to comply with the legal provisions in force in the jurisdiction of the Firm. For example, a company may be required to have accounting practices in accordance with GAAP or IFRS. The key elements that should be disclosed in informed consent forms22 are contained in the guidelines published by the organizations involved and a proposed informed consent template is available in the literature.23 To ensure that the objectives and principles of the Code of Ethics are respected, some companies appoint a compliance officer. This person is responsible for keeping abreast of changes in regulations and monitoring employee behaviour to promote compliance. Ethical and legal standards: what`s the difference? Making decisions that are both ethical and law-abiding is something that investment professionals around the world constantly pay attention to. These decisions are based on knowledge of the legal system, the interests of all parties and the professional judgment of the individual. Nevertheless, there are situations where possible actions violate either professional ethics or the law. In this article, we will explore the differences between the two and guide decision-making in such scenarios.

CEOs have a responsibility to keep companies profitable. Their success often depends on income statements. However, some companies also attach importance to high ethical standards. There is no doubt that CEOs are often faced with difficult decisions that can negatively impact employees or customers. That doesn`t mean it`s the wrong choices. CEOs should have their company`s ethical barometer at their fingertips and remember that just because something is legal doesn`t mean it`s always right. On the other hand, just because a decision can be considered imprudent does not mean it is the wrong choice for the long-term viability of the organization.