Discuss the relationship between Legal compliance Mechanisms and Ethical compliance mechanisms Ethics is a set of standards, or a code,

or value system, worked out from human reason and experience, by which free human actions are determined as ultimately right or wrong, good or evil. This is as important in business as in any other endeavor. Corporations believe that conducting business ethically and striving to do the right thing are vital to the success of the company. Law is a code of conduct which the authority in power prescribes for society. It basically differs from ethics in its option to use force if and when necessary and by the fact that it is backed by power. Laws are, by and large, fair and moral. But it is not easy to accept that laws can be the foundations of ethics, or even that laws can ensure ethical behavior. In business environment, corporate governance issues are always dealt with from a compliance viewpoint. A distinction is made in this post between legal and ethical compliance mechanisms and shows that legal compliance mechanisms have proven to be inadequate as they lack the moral valor to restore confidence and the ability to build trust. It is important to look at virtues and ethical principles in governance in order to establish practical responses grounded on the consistent use of core values and principles as well as commitment to ethical corporate practice The difficulty with legal compliance mechanisms is that many abuses that have enraged the public are entirely legal, Further, laws regulating companies are largely ambiguous due to the fact that they are mainly procedural, and courts have a hard time grasping abstract and sophisticated financial concepts, well-counseled executives have been able to evade from liability.

Legal compliance mechanisms tend to promote a freedom of indifference which corresponds to the letter of the law which may not necessarily inspire or instill excellence, whereas, ethical compliance mechanisms promote a freedom for excellence which corresponds to the spirit of the law. Legal compliance mechanisms are insufficient and may not be addressing the real and fundamental issues that inspire ethical behavior Specifically, the law is mainly concerned with the behavior and the ethical requirements relevant to centrally reason, engines, purposes, and in general the characters express themselves in behavior. So that, Ethics is concerned with what they are and not just what we do. In addition, legislation is jurisdictionally limited by what lawful need in a state or country may be different, while moral values tend to be more global. Again, the emphasis on legal compliance mechanisms may be at the expense of ethical reflection because it can give the form its opinion and take personal responsibility for with the decisions that they make and therefore creates apathy in the day to day operations of the business, for the purpose merely hiding illegal. This leads to the Corporation corresponding to the law that may not necessarily inspire or instill excellence.