What is the relationship between regulations and ethics?

@Blogger | Posted on 6-Apr-2019

Some equate ethical behavior with legal behavior: If you are following the law, youmust be acting appropriately. Ethical principles, like laws and regulations, prescribe appropriate constraints on our natural tendency to pursue self-interest that could harm the interests of others. Laws and regulations often attempt to guide people toward ethical behavior, but they do not cover all unethical behavior. Ethical behavior is often distinguished from legal conduct by describing legal behavior as what is required and ethical behavior as conduct that is morally correct. Ethical principles go beyond that

which is legally sufficient and encompass what is the right thing to do.

Given many regulators’ lack of sufficient resources to enforce well-conceived rulesand regulations, relying on a regulatory framework to lead the charge in establishing ethical behavior has its challenges. Therefore, reliance on compliance with laws and

regulation alone is insufficient to ensure ethical behavior of investment professionalsor to create a truly ethical culture in the industry.

The recent past has shown us that some individuals will succeed at circumventingthe regulatory rules for their personal gain. Only the application of strong ethical principles, at both the individual level and the firm level, will limit abuses. Knowing the rules or regulations to apply in a particular situation, although important, may not be sufficient to ensure ethical conduct. Individuals must be able both to recognize

areas that are prone to ethical pitfalls and to identify and process those circumstancesand influences that can impair ethical judgment.

| Posted on 6-Apr-2019

You often see a sign board on the Highway stating "No Horn Zone". If you blow horn there, it would invite penalties. However, if you are going through a local street, not blowing the horn even in a Not "no horn zone" is a ethical thing.

So legal or regulations involve a set of defined rules and protocols. Failure to fulfill the said protocols and rules lead to the penalties and the punishments. However ethics donot have any set of fixed protocols or rule book. Ethics deal with more of a human behaviour or in other words what is right and what is wrong.

Therefore, regulations are fixed and cannot be changed with the changing conditions. But the ethics are flexible and ethics of a person depends on the circumstances. What is ethical in a given situation may be unethical in the other situation.

Also there can be situations where it is legally right but may not be morally or ethically right. Thus regulations are imposed on a civilian and everyone has to abide by the rules and the regulations, but ethical behaviour is all voluntary. Letsdiskuss

Apart from the differences there are similarities in the both. The intent of both the concepts is to make the people civilised and disciplined. While regulations make it a external de motivator to be a disciplined while ethics is a intrinsic motivator. To create an environment of peace, sincerity, discipline and better place to live in both ethics and regulations are necessary.

There is a crucial relationship between the regulations and the ethics. Without proper ethics, no regulations can be imposed. Thus the scope of ethics is more wider than that of the regulations. Regulations have to be imposed considering the ethical behaviour and the environment. Smiley face

Priyal Verma

Student | Posted on 6-Apr-2019

There is a lot of misconception about the whole idea of regulations and ethics. These two terms are often interchanged or used at one another’s place which is erroneously wrong due to the vast difference in meaning they have.

Regulations are strict statements that govern the behaviour of the individuals and lay down the code of conduct in an organisation,meant to be strictly adhered to.Law is an umbrella term consisting of both rules and regulations. Use of penalties to enforce regulations in place is a common practice and also a major distinguishing factor between regulations and ethics.

For example: A regulation passed to control the sale of goods containing tobacco because they are injurious to health.

Ethics on the other hand is a totally different concept running on completely different lines as compared to regulations. Ethics are innate values that are imbibed in an individual. They are general guidelines which speak to the conscience of an individual and guide them to question what is morally right or wrong in particular situations.

For examples: It is ethical behaviour not to damage or wreak havoc onto the property of the organisation one is working with.