Today's businesses are subjected to a multitude of state, local, and federal regulations. Almost every action a business owner takes - from the initial act of going into business to hiring and firing employees to selling services, products and goods - is subject to statutory law and numerous other regulations.

Sometimes I think we all wonder how our laws come into existence and why they are important to us. We get irritated at the triviality or inconvenience of a law or wonder why another law seems so unfair and inequitable. An understanding of these philosophies translates into our everyday business and helps us stay afloat and make important decisions. A good business person must have a sound approach to management and decision making, and understanding ethics plays a central role in this.

I think it is a valuable exercise to give some thought to what we consider a minimum acceptable standard for ethical business behaviour. Does simply obeying the law mean we have fulfilled our business ethical obligations? No, of course not, because in a single workday we all take actions and sort through situations and thoughts that are not based in law, but in ethics. Is there a distinction between law and ethics? Sometimes there is and sometimes there isn't, but it is important to keep both close to our minds and hearts. Why? Because this is how we build successful businesses. Ethical business owners that obey the law are the more successful and those that don't usually get caught in the end.

In the interests of keeping sight of our personal freedom and for very practical reasons, we must realize that the law does not and certainly cannot "codify" (put in writing) all ethical requirements. If this were the case, the massive amount of law we currently have would multiply into a mountain. I think it helps to think of an example: Is it illegal to lie to one's family? No, but most of us would say is it unethical to do so. It might seem that getting a good fix on the legality of a given action would be a simple thing to do.

Either something is legal or it is not, but once you really get into the law you find most of it falls into a grey area. One of the major challenges a business person faces is that the legality of a situation is not always clear. In part, this is because business is regulated by so many laws that it is possible to violate one of them without realizing it. "Grey areas" in the law make it hard to predict how a court will decide an issue or dispute or apply the law to these situations. Ethics can often lead you down the right path, even when you don't know the law.

The fact that these laws are changed, deleted, supplemented or replaced frequently makes it all the more complex. Just think about the tax law for a minute. That will really make your head spin. Most businesses in our industry do not have the resources to have an attorney on call to help them make decisions or understand how they will be affected by the law. For example, firing an employee just because of that person's race or gender would clearly violate federal laws prohibiting employment discrimination.

To understand this better, let's look at an example that could easily be found in any one of our industry businesses. Suppose that you decide to launch a new advertising campaign. How far can you go in making claims for your services or products? Federal and state laws prohibit firms from engaging in "deceptive advertising." At the federal level, the test for deceptive advertising normally used by the Federal Trade Commission is whether an advertising claim would deceive a "reasonable consumer." At what point would a reasonable consumer be deceived by a particular ad? What about the ethics of this situation? Is it ethical to "enhance" your ad "just a little?"

As an example, if you hired a dog trainer for you facility, could you say they train dogs "for any job" or to do "anything?" You would have to ask yourself if this ad was a little too broad, because although the new employee can train most dogs, could they train dogs for handicapped assistance? For police work? As a bomb dog? Most likely not. Ignorance of the law does not excuse a business owner or manager from liability for violating a statute or regulation.

So how does ethics play into all of these laws and philosophies, and why should you be concerned? Your personal ethics will keep your business on course and stable. It will often keep you out of legal trouble and keep you from entering into a "grey" area or keep you from stretching something like advertising into giving the public an impression that isn't really true. In the example I provided about advertising, if you weren't completely honest and accurate you could get into legal trouble not only from an FTC point of view but from giving your client a false and misleading impression about the level of care his or her pet is going to receive. These statements can be used against you in a law suit, so dig deep, follow that ethical path your "gut" is nudging you towards, and most of the time it will help you stay out of trouble.

No matter what, always take the time to find out what the law is, do your best to adhere to the law and to be fair and ethical to your clients, employees, and anyone else with whom you do business.

Source: By Patricia Fin Pet Services Journal November / December 2008