Beruflich Dokumente
Kultur Dokumente
Edited from Shaw W.H. & Barry V. (2010) Moral Issues in Business,
11th Edition. Thomson / Wadsworth
Learning Outcomes
Discuss the reasoning for making ethical judgments
in business settings.
Discuss the role and implication of a socially
responsible business entity.
Analyze the range of moral philosophies towards
resolving ethical dilemma in organizations.
Describe the appropriate conceptual framework to
evaluate the impact of ethical issues on business and
society.
Lecture 4(1)
ROOT OF PROBLEM
1) Capitalism
2) Agency problem
3) Doctrine of limited liability
Lecture 4(1)
(1) CAPITALISM
Capitalism
An economic system in which the major portion of
production and distribution is in private hands, operating
under what is termed a profit or market system.
Socialism
The polar opposite of capitalism, an economic system
characterized by public ownership of property and a
planned economy
Worker control socialism
A hybrid market-oriented socialism.
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3) Competition
Adam Smith (in An Inquiry into the Nature and Causes of the
Wealth of Nations, 1776), explained how free competition
makes individual pursuit of self-interest socially beneficial.
4) Private property
Capitalism requires private ownership of the major means of
production (factories, warehouses, offices, machines,
trucking fleets, land, etc.)
5) The natural right to property
One basic defense of capitalism rests on a supposed natural
moral right to property.
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Criticisms of Capitalism
(1) Inequality
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Lecture 4(1)
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