A business owner who was turned downed for a loan because it was to risky, had his accountant to change his accounting method from cach basis to accrual basis. Which he then applied for a laon with another bank (on the application there was a question that asked if he had been previously rejected for credit and he answered no). Is this business owner displaying ethical behavior or legal behavior and why?
No. Ethics is the knowledge of what is right and wrong. The law is what your government tells you to do and not do. Many things, such as abortion, are legal, but are considered unethical by some.
Added: Or persons who find 'loopholes' in the law that, although may make make their actions 'legal,' they are far from 'ethical.'
The legal environment sets the normative standards of ethical behavior
We cannot answer this question at the moment
different between legal and ethics
writing about legal issues, rituals, and guidelines for ethical behavior
The leaders should always ensure that they address the need for ethical behavior, legal regulatory requirements and social justice.
Being ethical does always mean being legal but sometimes there are laws attached. However being unethical can have social consequences even if there are not legal ones.
Legal behaviour is simply behaviour not rendered illegal by any applicable legal authority. The status of its il/legality is irrelevent to whether or not it is ethical,which is a philosophical concept apart.