Editor's Corner: Law and Ethics in the Business School

• Published in: American business law journal Vol. 42; no. 1-6; pp. v - vi
• Main Author: Gabel, Joan T A
• Format: Journal Article
• Language: English
• Published: Malden, USA Blackwell Science Inc 01.08.2005; Academy of Legal Studies in Business
• Subjects: Business ethics; Business schools; Decision making; Ethics; Law; Management decisions; United States > US
• ISSN: 0002-7766; 1744-1714
• DOI: 10.1111/j.1744-1714.2005.04206001.x

Law has previously been misconceived as a hindrance to business growth, a limitation on creative practices and an issue to be avoided until absolutely necessary. This misconception has been highlighted by recent corporate scandals where management focused on short-term success and assumed that law and values provided unwanted friction. The lessons learned by these managers included the unintended effect of not only opening the door to competitors, but also harsh public consequences for their firms and for the market as a whole. Another lesson learned by the advent of these scandals is that the study of law and ethics by business students is a necessity. Business schools who emphasize and support the evaluation of law and ethics on managerial decision-making, therefore, contribute to their own mission to expand the knowledge base, enhance the ability of legislators and policy-makers to be fully informed, and better educate future CEOs.