What is the difference between ethics and law?

As societies face more complex challenges, from how to navigate rapidly changing technologies to evolving political environments, questions of law and ethics can feel less like ivory-tower debates and more like common concerns. They affect boardroom decisions, product design, and everyday behavior.

Continue reading to explore the differences between law and ethics, their overlap, and how to navigate situations where what is legal may feel deeply wrong, or vice versa.

What is law?

Law is a formal set of rules established by a governing authority. It is codified in statutes and enforced through institutions like courts, the police, and regulatory agencies. Laws define what is permissible, what is forbidden, and what penalties apply for violations.¹

For example, antitrust laws prohibit unfair market competition and data protection laws regulate how organizations collect and use personal data.

While science gives us “universal laws” like gravity, most rules in the social and legal sense are jurisdiction-specific. Legal systems vary by territory, and what’s lawful in one nation may be criminalized in another. For example:

• Cannabis possession is legal in Canada and several U.S. states, but punishable by prison sentences in Japan.^2,3
• Freedom of speech is constitutionally protected in the U.S. but restricted in China, where online expression is closely monitored.^4,5 
• In South Africa, labor laws prohibit employers from laying off employees (also called ‘retrenchment’) without a period of consultation and fair severance packages.⁶ In the United States, severance is not required by law.⁷

What is ethics?

Ethics is the branch of philosophy concerned with what is right and wrong, good and bad. It deals with fundamental issues of practical decision-making, especially the standards by which human actions are judged.⁸ They derive from cultural norms, philosophies, personal and professional values, religious beliefs, and social consensus. Ethics guides us in what ought to be done, not merely what is legally required.

Professions often formalize ethics via codes of conduct: medical ethics, legal ethics, and engineering ethics. Individuals can also develop ethical frameworks from their values, for fairness, responsibility, honesty, welfare, etc.

Like law, ethics is not universal, and what looks honorable in one place may appear questionable in another. For example:

• In Japan, silence during a meeting may be seen as respectful and appropriate, whereas in other cultures, the same silence could be perceived as evasive or unprofessional.
• Gift-giving in business negotiations, for example, is routine in many parts of Asia and the Middle East. In the U.S. and much of Europe, it may raise eyebrows or compliance red flags.
• In the Netherlands and Belgium, assisted dying is framed as a compassionate choice tied to personal autonomy. In many other countries, it is condemned as a violation of the sanctity of life and remains criminalized.

Ethics is heavily context-dependent, which means cross-cultural collaboration is as much about navigating moral landscapes as legal ones.

Comparing law vs. ethics

For professionals, leaders, and organizations, understanding the differences between ethics and law can shape how decisions are made when the rulebook runs out.

Similarities between law and ethics

Law and ethics intersect in meaningful ways — many legal systems draw heavily on prevailing ethical norms. Anti-discrimination laws, for example, stem from widely accepted ethical principles of fairness, equality, and human dignity.

The U.S. Civil Rights Act of 1964 was born from an ethical demand for justice, later codified into law. Similarly, international human rights treaties reflect ethical ideals that gained broad global acceptance before being embedded in binding legal frameworks.

Professional life can also illustrate this overlap. Businesses that proactively adopt high standards for sustainability and corporate social responsibility are often better prepared when governments later mandate those standards.⁹ Other examples include:

• Lawyers must follow both legal requirements and ethical codes, such as confidentiality and avoiding conflicts of interest.
• In medicine, patient consent is an ethical necessity and a legal requirement.
• Most countries require companies to meet basic reporting standards by law, but boards are also expected to act in line with ethical duties of transparency and accountability to stakeholders.

Think about a time in your own career when your organization used a code of ethics or guiding principles. Were any of them reinforced by the law in your area?

Differences between law and ethics

Some of the most complex societal dilemmas arise when legality and morality move in opposite directions.

Legal, but unethical

There are many practices that remain within the bounds of law yet pose ethical dilemmas. For instance, corporations exploiting tax loopholes may stay on the right side of the law, but face criticism for shirking fairness. When companies frequently operate in “legal but morally reprehensible ways,” they can erode public trust and legitimacy long term.¹⁰

Certain marketing practices might comply with technical regulations while misleading consumers, such as presenting health claims without sufficient scientific backing.

Legislation is crafted by people, and people bring with them competing interests: political agendas, economic priorities, and the influence of powerful lobby groups. This means some laws protect vested interests more than moral ideals. 

Ethical, but illegal

Sometimes, doing the morally right thing can breach existing laws. Whistleblowers in restrictive jurisdictions often face legal consequences for exposing corruption or human rights abuses, although their actions may be widely regarded as ethically justified. 

One example is whistleblower Edward Snowden, whose disclosure of mass surveillance programs was framed as a public service by some observers, but remains criminal under U.S. law.¹¹

Civil disobedience movements also illustrate this tension. From Mahatma Gandhi’s Salt March against colonial tax laws to Martin Luther King Jr.’s leadership in the U.S. civil rights movement, acts of protest that were unlawful were also turning points toward social progress. 

Has there ever been a time in your career where the work you were being asked to do posed an ethical dilemma? How did you move forward?

Ethics vs. law in technology and AI

Technology exposes some of the biggest gaps between ethics and the law. For example, artificial intelligence is transforming industries faster than regulators can respond. 

The European Union’s AI Act imposes tiered obligations on high-risk AI systems, but is not fully applicable until 2026.¹² Meanwhile, ethical concerns around bias in algorithms, the opacity of decision-making, and privacy risks are being raised everyday.

Case study: Facial recognition

While legal in many jurisdictions, the use of facial recognition by law enforcement is criticized as unethical due to racial bias and surveillance risks. In 2020, IBM, Amazon, and Microsoft all paused or restricted sales of their facial recognition technology to police, citing ethical concerns before comprehensive legislation existed.¹³

Decision frameworks for professionals

When law and ethics are in conflict, individuals and organizations need structured ways to make sound decisions. Several frameworks are commonly used:

• Professional codes of conduct: Many industries provide explicit guidance (e.g., the American Medical Association’s Code of Medical Ethics, or the CFA Institute’s Standards of Professional Conduct in finance). These serve as anchors when law is silent or ambiguous.

• The utilitarian approach: Rooted in classical philosophy, this framework asks which decision will produce the greatest good for the greatest number. While far from perfect, it helps weigh broader social consequences, especially in public health policy or corporate sustainability.

• The rights-based approach: This perspective emphasizes respect for fundamental rights, such as privacy, dignity, and freedom of expression, regardless of outcomes. For example, respecting user privacy may limit a company’s profit opportunities, but it aligns with both ethical obligations and evolving legal standards.

Applying such frameworks strengthens both decision-making and trust. A report by LRN, an ethics and compliance education company, found that firms with strong ethics outperforms those with weaker cultures by 50%.¹⁴

The role of education and lifelong learning

New technologies, global crises, and cultural change reshape what societies expect and what regulators eventually require. Staying ahead of this curve means ongoing education, instead of just relying on intuition. Those actively studying ethical frameworks, legal developments, and cross-cultural perspectives are better equipped to handle complexity and make decisions that endure.

Online courses in business strategy, digital transformation, and leadership often integrate both ethical reasoning and legal literacy. For example, online sustainability courses cover regulatory requirements and the anticipation of emerging ethical expectations around environmental impact. Online law short courses can provide learners with a foundation in the legal and regulatory frameworks in their country or industry.

THE LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE (LSE)
Ethics of AI

CAMBRIDGE CISL
Communicating for Influence and Impact

Saïd Business School, University of Oxford
Oxford Executive Leadership Programme

THE LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE (LSE)
Public Policy Analysis

FAQs

How do ethics and law interact with each other?

Ethics and law often overlap but are not identical. Many laws originate from shared ethical principles, such as fairness or protection of life, while ethics can push beyond what the law requires. In practice, law provides enforceable rules, while ethics guide choices in areas the law does not cover. Together, they influence professional standards, corporate behavior, and societal norms.

Are ethics considered more subjective than law?

Yes. Ethics are shaped by culture, religion, philosophy, and personal values, which makes them more subjective and variable across societies. What one community sees as ethical, another may view as unethical or even corrupt.

Laws, on the other hand, are codified and enforced by recognized authorities, making them more objective within their jurisdiction. However, both ethics and law evolve as societies’ values and priorities shift.

Why is it important to understand the difference between law and ethics?

Recognizing the difference helps us traverse complex situations where legality and morality clash. A legally permissible decision may still harm trust, reputation, or stakeholders if it violates ethical standards. Conversely, ethically sound actions sometimes challenge outdated or restrictive laws. Understanding both frameworks allows individuals to act responsibly and build credibility.

Filed under: Career adviceEducation

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