MODULE II

ETHICAL ISSUES IN CAPITALISM AND MARKET

Capitalism also called free market economy, dominant in the Western world since the
breakup of feudalism, in which most of the means of production are privately owned and
production is guided and income distributed largely through the operation of markets.
Capitalism can be defined as 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.
KEY FEATURES OF CAPITALISM
1.

The Existence of Companies

In capitalism business organisations are treated like a person or at least like a separate and
distinct entity. (Ex: Expressions like the company thinks that, From the companys
viewpoint, As far as the company is concerned). Capitalism permits the creation of
companies or business organisations that exists separately from the people associated with them.
Today the big companies we are familiar with IBM, Ford, AT&T, General Electric
are, in fact, corporations. Like you or me, a corporation may enter into contracts and may sue or
be sued in courts of law. It may even do things that the corporations members disapprove of.
2.

Profit Motive

Those commodities and services produced under capitalism are expected to yield
maximum profit. Hence, what to produce and how much to produce are determined by
individual profit rather than by social benefit. It is the profit motive which induces businessmen
to make the optimum use of the factors of production. Thus, profit motive is the mainspring of
all economic activity under capitalism.
3.

Competition

The producers compete with one another to get the consumers choice or in selling the
commodity as much as they can through advertisement. They may cut the price or improve the
quality of the product or offer other concessions to the purchasers. There is competition among
the workers for jobs. It may also be pointed out that perfect competition is rare in capitalism. In
the real world there is monopolist competition. The producers generally combine to form
monopolies or oligopolies to maximize their profits by charging the maximum price they can.

4.

Freedom of Enterprise

A very outstanding feature of the capitalistic order of the society is economic freedom.
This freedom implies three things: a) freedom of enterprise, b) freedom of contract, and c)
freedom to use ones property. Everybody is free to take up any occupation that he likes or start
any business he likes and to enter into contracts or agreements with his fellow citizens in a
manner most profitable to him.
5.

Right of Private Property

Private property is central to capitalism. Capitalism requires private ownership of the

major means of production and distribution. The means of production and distribution include
factories, warehouses, offices, machines, computer systems, agricultural land and whatever else
makes up the economic resources of a nation. Under capitalism private hands control these basic
economic assets and productive resources. Thus the major economic decisions are made by
individuals or groups acting on their own in pursuit of profit. These decisions are not directly
coordinated with those of other producers, nor are they the result of some overall plan. Any
profit or losses that result from these decisions about production are those of the owners.
6.

Class Conflict (Economic Inequalities)

An important feature of capitalist countries is the glaring inequalities of wealth and

income. A few are very rich indulging in all sorts of conceivable luxuries, where as the masses
are not able to get even two square meals a day. What is more painful is that the gulf between
the rich and poor is ever widening. The inequalities arise from unearned incomes which are due
to uneven distribution of wealth. Larger wealth yields higher income. Thus, under capitalism
the society has been divided into two classes, the haves and the have-nots which are
constantly at war with each other.
7.

Importance of Price System

It is the price mechanism which facilitates the functioning of capitalism. It is the price
which equates the demand and supply of commodities and factors of production. A higher price
is also a warning to the consumers to cut down their consumption.

8.

Sovereignty of the Consumer

Under capitalism the consumer has been compared to a king. His whims, prejudices and
desires seem to rule the world of production. The rationale of all economic activity is the
satisfaction of the consumers wants.
MORAL JUSTIFICATION OF CAPITALISM
The proposition that capitalism is a morally acceptable system is very much open to
debate. Whether we decide that capitalism is morally justified will depend, at least in part, on
which general theory of justice turns out to be the soundest. The defenders of capitalism have
sought to justify their system based on the following theories: 1. the argument that the moral
right to property guarantees the legitimacy of capitalism, and 2. the utilitarian-based economic
argument of Adam Smith.
1. The Natural Right to Property
A common defense of capitalism is the argument that people have a fundamental moral
right to property and that capitalist system is simply the outcome of this natural right.
2. The Utilitarian Argument
Another, very important argument defends capitalism in terms of the many economic
benefits the system brings, claiming that a free and unrestrained market system, which exists
under capitalism, is more efficient and more productive than any other possible system and is
thus to be preferred on moral grounds. Adam Smith in the The Wealth of Nations argues that
when people are left to pursue their own interests, they will produce the greatest good for all.
MERITS OF CAPITALISM
1.

Automatic Working

It does not require any central directing authority for its functioning. It functions automatically
through the price-mechanism.
2.

Higher Efficiency and Incentive to Hard Work

Under capitalism the entire manpower resources of the country (labour and entrepreneur) work
the hardest and most efficiently. In this way, the national output increases and economic
development is accelerated.

3.

Higher Rate of Capital Formation

People under capitalism have the right to hold property and pass it on in inheritance to their
heirs. Owing to this right, people save a part of their income so that it can be invested to earn
more income. The rate of capital formation increases when savings are invested. This
accelerates economic growth.
4.

Economic Development and Prosperity

Capitalism encourages innovation and technological progress and the optimum use of resources.
It is thus conducive to economic growth and prosperity.
5. Optimum Utilization of Resources
In capitalism every producer and entrepreneur tries to use the productive resources at his disposal
in the most economical manner in order to make maximum profit.
6.

Just System

The richest reward under capitalism goes to the ablest, the most daring as well as the most
prudent entrepreneur. A man who takes the initiative and shows extraordinary resourcefulness
make the highest profits.
7.

Democratic

The consumers control gives the system a democratic touch. Nobody likes that his consumption
should be dictated by some superior authority. In the capitalist economy the consumers consume
what they like and not what is supplied to them.
CRITICISM OF CAPITALISM
The major defenses and merits of capitalism have not persuaded critics that it is a morally
justifiable system. Their objections to capitalism are both theoretical and operational.
Theoretical criticisms challenge capitalisms fundamental values, basic assumptions, or inherent
economic tendencies. Operational criticisms focus more on capitalisms alleged deficiencies in
actual practice, in particular, on its failure to live up to its own economic ideals.
The following criticisms are a mix of both theoretical and operational concerns:
1.

Inequality

Economic inequality exists in capitalist society. The disparity in personal incomes is enormous;
a tiny minority of the population owns the vast majority of the countrys productive assets and

the vast majority of the society continues to be married by poverty and homelessness. With
divisions of social and economic class comes inequality of opportunity. Some critics of
capitalism go on to maintain that aside from inequalities of income and ownership, the inequality
inherent in the worker-capitalist relationship is itself morally undesirable.
2.

Capitalism Breeds Oligopolies

Critics of capitalism contend that capitalism breeds oligopolies that eliminate competition and
concentrate economic power in the hands of a few.
As early as the middle of the 19 th century, the German philosopher and political economist Karl
Marx (1818-1883) argued that capitalism leads to a concentration of property and resources and
thus economic power in the hands of a few. High costs, complex and expensive machinery,
intense competition, and the advantages of large scale production all work against the survival of
small farms, said Marx. Many see proof of Marxs argument in todays economy. Since the
industrial revolution the economy has come to be dominated by a relatively small number of
enormous companies that can conspire to set prices, eliminate competition and monopolize an
industry. The food industry is a perfect example, with four or fewer firms controlling the vast
majority of sales of almost any given product. Increasingly multinational in character the giant
corporations like Microsoft frequently do business around the globe, disavowing allegiance to
any particular nation. Today more than a quarter of the worlds economic activity comes from
the 200 largest corporations.
3.

Exploitation and Alienation

Marx argued that as the means of production become concentrated in the hands of the few, the
balance of power between capitalists (Bourgeoisie) and labourers (Proletariat) tips further in
favour of the bourgeoisie. Because workers have nothing to sell but their labour, said Marx, the
bourgeoisie is able to exploit them by paying them less than the true value created by their
labour. In fact, Marx thought, it is only through such an exploitative arrangement that capitalists
make a profit and increase their capital. And the more capital they accumulate, the more they
can exploit workers.
Again because of the unequal positions of capitalist and worker, labourers must work for
someone they must do work imposed on them as a means of satisfying the needs of others. As
a result, they must eventually feel exploited and debased.

4.

Wasteful Competition

Colossal expenditure is incurred on advertisement and salesmanship simply to defeat a rival.

Resources employed by those who are defeated in the race, go to waste.
5.

Human Welfare Ignored

The economic decisions made by individual entrepreneurs and producers under capitalism are
based on their self interest and not from the point of view of good of the society. The producers
produce those commodities and in such quantities that the difference between price and cost is
the maximum so that their profit is maximized. However necessary and useful the commodity
may be the producers will not produce it if price does not exceed the cost. Social welfare is
ignored altogether.
6.

Economic Instability and Unemployment

The recurrence of the trade cycles, due to over-competition and over-saving resulting in over
production, must be considered one of the bitterest fruits of capitalism. Booms are followed by
slumps and when there is depression there is large scale unemployment.
7.

Property Rights take Precedence over Human Rights

Capitalism lays undue emphasis on property rights as against human rights. Money, not man,
rules the world and debases humanity.

8.

Malpractices

The malpractices of big industrialists and businessmen include payment of handsome salaries to
influential directors, the large scale evasion of fiscal laws, luxurious living at nations cost and
persistent generation of black money through secret deals and stealthy transactions. The
unpleasant side of capitalism has been thoroughly exposed by the scandals circulating about the
big business personalities.
9.

Emergence of Monopolies and Concentration of Economic Power

It also happens under capitalism that perfect and free competition ceases to prevail and instead
big combinations of powerful producers and monopolies emerge against whom it becomes
difficult for an ordinary entrepreneur to compete. These big monopolies come to control the
market on account of the huge resources that they command and small producers are squeezed
out. Also the big businesses control many types of businesses and industrial concerns at the
same time. Hence there is lot of concentration of economic power in a few hands.

10. Social Injustices and Economic Inequality

The extreme inequality of wealth distribution which is being accentuated as time goes on is the
most irritating outcome of capitalism. On the one hand, there are a few rich people and on the
other the vast masses fabulously steeped in miserable poverty. The former are enjoying a
luxurious life even without working, whereas the latter cannot get two square meals a day even
after putting in hard labour. They are clothed in rags and live in hovels and their children often
die from lack of milk and medicine. Where as even the rich mens dogs are better fed. A system
which results in such social injustice and economic inequalities deserves to be condemned.

SOCIALLY RESPONSIBLE BUSINESS BEHAVIOUR

By Social Responsibility, we mean the intelligent and objective concern for the welfare of
society that restrains individual and corporate behaviour from ultimately destructive activities, no
matter how immediately profitable, and leads in the direction of positive contribution to human
betterment, variously as the latter may be defined.

WHY BUSINESS MUST BE SOCIALLY RESPONSIBLE

Both business and society interact with each other and are mutually dependent on each
other. A business exists and operates within a social framework and thus requires social
sanction. Society, on the other hand, requires business to fulfill its needs and for its economic
and social well-being. A business receives inputs from the society. It offers its outputs to the
society in terms of products and social service. Its outputs, its products and activities must be
beneficial and acceptable to the society. All businesses need societys approval in order to
function.
INTERACTION BETWEEN BUSINESS AND SOCIETY
1.

Growth-responsibility Expectation

Business must realise that the best way to survive and grow in the long run is to operate
profitably by serving customers responsibly. The social expectation is that the bigger the
organisation grows, greater are the responsibilities it is expected to assume.
2.

Long Term Orientation

If an organisation expects to conduct its business in the long term, it will require a loyal brand of
customers, repeat customers, customers with goodwill. This goodwill cannot be bought, begged

or borrowed it has to be earned. And it can be earned only when organisations behave
responsibly; when they discharge social responsibility.
3.

Reputation of the Company

To build up a reputation of a good, friendly company they should engage in socially approved
activities like giving away scholarships to deserving students and donating products to the
weaker sections of the society.
4.

Give-Take relationship

Since business exists and operates within the society, take so much from the society, it also owes
something to the society. To keep the balance even, it needs to give back something to the
society, to do something for its benefit.
MAJOR SOCIAL RESPONSIBILITIES OF BUSINESS
1. Optimum Utilisation of Scarce National Resources
All business firms have the moral obligation to utilize the scarce national resources of the
country in an optimum way and not to waste, misutilise, damage or cause to deteriorate the
resources at its disposal. Since many uses can be made of the same natural resources, hence
options must be carefully chosen to find out which uses will serve the country better and result in
social welfare. Moreover what proportion of the wood should be used for what purpose must
also be ascertained. Because, whatever wood is used in one industry, that amount of wood is
denied to other industries. Hence the industry to which the scarce natural resource is being made
available, must make a moral commitment to utilise this scarce resource to its optimum level,
and not to waste or misutilise it in any way. It must remember at all times that what is made
available to it, is being denied to others.
2. Responsibility Not to Make Losses
Economic performance and social performance are both necessary to become a socially
responsible company. A loss making organisation cannot generate revenue for its shareholders,
cannot keep its welfare commitments to its employees and ultimately drives its workforce into
the unemployment market. If organisations did not make profits and went out of business,
thousands of people as well as the economy would suffer drastically. Thus organisations have a
social responsibility to make profits. A company has to work out a method for integrating profits
and social good. It cannot make money at any cost, neither can it be a caring company, but
unprofitable.

3. Improved Quality of life

Improvement of the quality of work life of employees is a special area of focus for the
company. Moreover its products and services can be targeted to improving the quality of live of
the people of the society.
4. Responsibility of Employment and Income
Every business should make provisions for the payment of fair wages, satisfactory
working conditions, steady employment and job security, prospects of promotion, growth and
development of workers and also take adequate measures for employee welfare. Thus a business
must be just and humane and must provide for fair opportunities to all workers for their
advancements.
5. Offering Quality Products at Fair Price
Providing quality products at fair prices is a major social responsibility of business
organisations.
6. Environmental Protection
Business organisations also have the social responsibility of taking serious steps to
protect the environment from industrial pollution and destruction.
Business does so much
irreparable harm to the environment that it becomes an obligation for them, not only morally, but
also legally to undo the damage by taking serious and responsible steps to protect the
environment and keep it in a healthy condition. Planting of trees, avoiding polluting the
atmosphere, water and greenery of the community as well as of the country and also taking
active steps to protect the environment from further harms is what business organisations must
do to conduct themselves as responsible corporate citizens.
7. Fair Trade Practices
Fair Trade Practices of business firms constitutes of:
i)
ii)
iii)

Avoidance of monopolistic and restrictive trade practices, by entering into

secret combination agreements;
Charging fair and reasonable price from customers and not engaging in, or
leading the entire market into a price war;
Offering products and services of quality consistent with their claims and
expectations;

iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
xiv)
xv)
xvi)
xvii)

Making goods and services easily available in the marketplace and not
resorting to artificial scarcities;
Not indulging in hoarding or black-marketing and thereby swindling the
public;
Not making false, misleading and exaggerated claims in its advertisements;
Providing accurate and relevant and timely information to creditors and
suppliers;
Making prompt repayment of loans and other borrowings;
Abiding by the rules, regulations and the laws of the country;
Paying corporate taxes, duties and other dues honestly, promptly without any
cover-ups or cheatings;
Not bribing public servants and corrupting the democratic structure of the
country;
Not buying political favours to sway decisions in its favour;
Maintaining fair business policies, decisions and activities;
Not selling secondhand or used products as new;
Not resorting to planned obsolescence of products and spare parts, in order to
gain a continuous market for its products;
Not procuring business or trade secrets of competitors through espionage,
bribery or in any other way;
Not deliberately make the organisation sick so as to avoid many of its
obligations and escape from its responsibilities.

8. Fulfill All National Obligations under Various National Laws

Business organisations are considered to be corporate citizens of the country in which
they operate and conduct their business. As citizens, they are required to fulfill certain
obligations under various national laws and to perform certain duties towards the nation. Firstly,
it has to fulfill its civic duties like avoiding pollution and keeping the environment clean. Then
they must regularly and honestly pay all their taxes and duties to the concerned governments.
They must make sure that they obey all the provisions of the various business and labour laws of
the country in letter and spirit. Above-all, they must have the national interest of the country in
which they operate, at heart and uppermost in their mind, at all times. They must make an
attempt to ensure national prosperity and reduce some of the countrys national problems, like
unemployment, corruption, black-marketing etc.
9. Safeguard the Health and Well-Being of Consumers

One of the vital social responsibilities of business is to safeguard the health and physical
safety of consumers using the products of the company. Many pharmaceutical as well as
cosmetic manufacturers neglect to take enough protection to uphold consumers health. Let us
take some examples in point: Most of the liquid medicines are deteriorating even though they
are well within the date of expiry due to poor quality of the product, seal (caps or closures),
packaging and storage conditions. Many cosmetics and toiletries contain a cocktail of chemicals
which cause irreversible damage to the skin, nails, hair and eyes and sometimes cause skin
diseases and even cancer. Deodorants contain aluminum, zinc, zirconium salts, formaldehyde
and alcohol and these may cause rashes and infection of the sweat glands by blocking them by
trapping bacteria deep in the fat layers under the skin surface. Strong shampoos damage hair and
causes hair loses. It erodes hair, causing each strand to become thinner and weaker.
LIMITS OF SOCIAL RESPONSIBILITY
The social responsibility actions of businesses are limited by cost, efficiency, relevance
and scope. As a result of these constraints, actions fall short of public expectations.
1. Cost
Social responsibility costs money. Whether a company desires to adopt a village, donate to a
college or school, build hospital, maintain parks or undertake relief operations in times of
calamity, it costs money.

2.

Efficiency

Social responsibility affects efficiency adversely. Being obliged to the employees, say a
company runs its plant, even if it is incurring losses every year. Its efficiency goes down and its
ability to compete is lost.
3.

Relevance

According to several critics, business has no obligation to society. The only obligation is to run
the business successfully. Social responsibility is irrelevant.
4.

Scope and Complexity

Societys problems are too massive, too complex, and too deep seated to be solved by even the
most socially conscientious company or even by all companies acting together.
CONCLUSION

In conclusion, it must be again stated that business is an indispensable part of society. It

is that organ of the society which creates wealth for the community. Business cannot exist on
altruistic ideals alone. It needs to make profits. Business today can play an important role to
enable the people of the nation to lead a life of dignity and self-respect inspired by humanistic
values of civic morality.

ETHICAL BUSINESS PRACTICES IN DIFFERENT COUNTRIES

Each nation has different cultural norms and practices. Each culture of the world has its
own ethical practices. The basic values of a society constitute the core of its culture. Ethics,
thus, has an intimate relationship with the culture of a place.
It is quite natural that like legal standards, ethical standards also differ among nations.
For example, in many countries, it is permissible for privately owned companies to make
political contribution to political parties and candidates, during election time. In many other
countries, like Brazil, payments to government officials and other civil servants and bureaucratic
personnel with political influence to get business done i.e., to assure expedited or favourable
handing of a business transaction, are not regarded as unethical bribes, but as proper payment for
services rendered. In order to acquire a business contract from the government in many
countries, the foreign company is expected to pay up, and payment of such commission is
regarded as a perfectly normal and acceptable way of doing business. People from Brazil believe
that it is morally acceptable to pay small bribes to get things done. People from United States,
on the other hand, find the practice of payment of petty bribes morally unacceptable.
BUSINESS ETHICS IN USA
In an effort to codify the expectations of the American markets, the US Department of
Commerce (DOC) issued its Model Business Principles in 1995 as guidelines for business
conduct in the United States and abroad. While the principles comprise a voluntary code of
conduct, the DOC hopes that they will encourage appropriate behaviour. Recognising the
positive role of U.S. business in upholding and promoting adherence to universal standards of
human rights, the Administration encourages all businesses to adopt and implement voluntary
codes of conduct for doing business around the world that cover at least the following areas:
1.

Provision of a safe and healthy workplace.

2.

3.
4.
5.

Fair employment practices, including avoidance of child and forced labour and
avoidance of discrimination based on race, gender, national origin or religious beliefs
and respect for the right of association and the right to organise and bargain collectively.
Responsible environmental protection and environmental practices.
Compliance with U.S. and local laws promoting good business practices, including laws
prohibiting illicit payments and ensuring fair competition.
Maintenance, through leadership at all levels, of a corporate culture that respects free
expression consistent with legitimate business concerns, and does not condone political
coercion in the workplace; that encourages good corporate citizenship and makes a
positive contribution to the communities in which the company operates; and where
ethical conduct is recognised, valued and exemplified by all employees.

In adopting voluntary codes of conduct that reflect these principles, US companies should serve
as models, encouraging similar behaviour by their partners, suppliers and subcontractors.
BUSINESS ETHICS IN THE MIDDLE EAST
There are many negative stereotypes of the level of Business Ethics in Middle East.
According to the people of Middle East business does not go with ethics and the western norms
of Business Ethics do not apply in the Middle East. To them business and ethics are
contradictory terms. Business Ethics is not institutionalized in the Academia in the Middle East.
There are no Business Ethics initiatives in the private sector. None of the local companies have
ethical codes although there are some beginnings among firms involved in multinational
business. There are no business initiatives against corruption even though, with the growth of
business, white collar crime is on the increase in all countries. With few exceptions, there are
also no business initiatives in the training of employees or managers on Business Ethics.
Most governments in the Middle East have agencies whose specific purpose is to combat
corruption among government officials.
For example: the central Audit agency and
Administration Control Agency in Egypt, the State Comptroller and Ombudsman and special
police units to combat white collar crime in Israel. These agencies which focus on corruption in
government administration have direct relations to Business Ethics in so far as business is
sometimes involved as culprits in the use of corruption for promoting its interests.
The Berlin-based Transparency International Organisation and Gottingen University
recently published the results of an international poll, conducted in 54 countries using its
corruption Perception index. The 54 countries were rated on corruption defined as the misuse of
public power for private benefits. These misuses include bribing public officials, taking
kickbacks in public procurement or misusing public funds. The 54 countries were ranked
according to their corruption index score from 1 (most corrupt) to 54 (least corrupt). The scores

ranged from 0 (highest level of corruption) to 10 (lowest level). The scores and rank order for
the five countries of the Middle East included in the survey are listed below:
Country
Kuwait
Egypt
Turkey
Jordan
Israel

Score
2.58
2.86
3.54
4.89
7.71

Rank
8
14
22
25
41

In Arab countries favouritism, nepotism and personal connections have a significant

impact on managers decisions. This is usually explained in terms of cultural factors such as
strong kinship ties and obligations that expect individuals to give preference to family. In Israel
political patronage is fairly widespread. The close ties between the various elites including
economic and political elites also result in favouritism. The subordinate position of women in
the workforce and in business organisations is another cultural issue where normative standards
of equality prevalent in most industrialised countries are not accepted in many Arab countries.
BUSINESS ETHICS IN CHINA
As the investigation of the Centre for Applied Ethics on Ethical Perceptions of Business
people in East China, reveals, the enterprises which recognise the importance of business ethics
are at a low percentage. Only a few companies realise that they should pay attention to the moral
dimension of management. The prevailing view in China is that, at present, the development of
the economy be the most urgent objective. So most factories and districts strive for beneficial
economic results. In contrast, ethics in business is not considered urgent to them.
In China the two aspects of management and corporate life technical and human
resources are not handled in a balanced way. In fact, technical considerations prevail in most
enterprises which seek to increase their utility.
Before the reform and opening in China, social life was predominantly political. Over
thousands of years the political social life has become a strong and pervasive tradition that
covered all aspects and levels of social life while civil society did not flourish at all. Against this
historical backdrop, the support by the government to launch and foster the process of
contractual relations is necessary. At the same time, however, the very idea of the contract
economy requires to reduce as far as possible the control and interference of government.
Hence, it demands a great amount of care to deal with the relationship between the government
that tends to interfere and business that claims more autonomy.

INDIA
In India more and more companies are emerging with formal statements of values or
beliefs. Some of the stated values are:
1.
2.
3.
4.
5.
6.
7.
8.

Competitive ability
Clear objectives
Taking advantage of change
Simple organisation
Committed people
Openness
Responsibility
Quality

ENGLAND
The following conceptual beliefs are attached with the ethics of British business
organisations:
1.
2.
3.
4.
5.
6.

Ensure customer satisfaction

Set high standard of ethics
Foster creativity and innovation
Avoid all discrimination
Contribute to the benefit of the society
Respect the dignity of each individual

SIMILARITY OF ETHICAL VALUES IN DIFFERENT CULTURES

Moral standards and values differ between different cultures, different societies, and
different ages and sometimes between different groups within the same culture. However, there
are certain principles that govern the foundation of all ethical systems in all cultures, and through
all the ages. One such principle is that it is unethical and even downright immoral to cause other
members of the society some harm in the pursuit of ones own happiness and material success.
(Ex: If a particular industry emits lethal gases and industrial fumes into the air and water of the
society, and causes poisonous pollution, it is considered an unethical and immoral, apart from
being an illegal act, irrespective of the culture and irrespective of the country.) We are all free to
pursue our own happiness and success, but, it is also our duty to see and ensure that our
individual pursuit of happiness and success does not result in collective harm for the society.
The second principle underlying all cultures, even the most primitive is that people do
not act solely for their own self interest and there lies a responsibility on each member of the

group for the welfare of the other members of the group. Cooperation among group members is
considered to be essential to ensure the welfare of the group.
The third principle, found common among all cultures, is that just as man takes from
society, so also is man indebted to society in the same measure.
The fourth principle is the principle of fairness. This principle is the foundation of the
concept of equality and justice in a culture.
The fifth principle is the principle of integrity and honesty.
The sixth principle is the principle of human dignity.
These principles are a part of every major religion, social philosophies and ethical systems.
These principles are almost like natural laws of human survival and development; and they are a
part of the human consciousness.