INTRODUCTION

• ETHICS • BUSINESS ETHICS

ETHICAL ISSUES IN CAPITALISM AND MARKET SYSTEM
Presented By: •Prashant Malhotra •MBA # 2 Sec C •Roll No # 3807

CAPITALISM
• The Institution of ethics • Principles of Capitalism Possession Responsibility Voluntary exchanges

VARIOUS CONSTITUENTS OF CAPITALISM
INDIVIDUALS •BUSINESS •MARKET •INCOME •GOVERNMENT
• •

EHTICS AND MARKET SYSTEM

A market system is any systematic process enabling many market players to bid and ask: helping bidders and sellers interact and make deals. It is not just the price mechanism but the entire system of regulation, qualification, reputation and clearing that surrounds that mechanism and makes it operate in a social context.

TYPES OF MARKET SYSTEM
• FREE ECONOMY MARKET SYSTEM • PLANNED ECONOMY MARKET SYSTEM • MIXED ECONOMY MARKET SYSTEM

FREE ECONOMY MARKET SYSTEM

Advantages:

Consumers are free •Workers are encouraged to work hard •Competition •Profit maximization

Disadvantages:

No government planning •Monopolies •Own self interest

PLANNED ECONOMY MARKET SYSTEM

Advantages:

Welfare of citizens •Wasteful competition is avoided •Less number of Industrial unrest

Disadvantages:

NO freedom of choice for producers or consumers •Rigid System

MIXED ECONOMY MARKET SYSTEM

Advantages:

Government control •Welfare of everyone etc…

Disadvantages:

lack of a profit motive •Lack of Efficiency etc..

ETHICAL ISSUES
• Problem or situation which requires a person or organization to choose between alternatives that must be evaluated as right or wrong is called ethical issues. • Ethical issues arise at both the macro and micro level.

• For economic, social, and environmental bottom lines • To get ISO 14000 which reviews environmental impact • Community pressure to do so • To enhance reputation • As a branding exercise • To improve community relations and public image • To enable employees to enjoy new levels of responsibility and leadership skills • To improve employee satisfaction, morale and loyalty

WHY ETHICAL ISSUES INVOLVED IN CAPITALISM AND MARKET SYSTEM

IMPORTANT ISSUES WHICH MAY BE CONSIDERED
Education for employee families Plant trees to offset own pollution Labor welfare Training courses Supporting nearby hospital, school, etc. • Donating through own Charitable Trust • Minimizing garbage creation • • • • •

ETHICS OF MARKET SYSTEM-MARKET LIBERALISM

THE GOALS OF MARKET LIBERALISM
• Balance and stability • Prosperity and welfare of the community • Expansionism •

THE EFFECTS OF THE MARKET
• The market limits positive and negative possibilities • Adaptive, non-innovative, conformity • Harm by competition • Harm to others as a social value

CASE STUDY

CONCLUSION
• Presently competitive market situations are encouraging the reasonably high standard of business ethics. • Economic development has tend to raise the minimal standards of ethical behavior. • Good reputation and Brand name can be made by following business ethics.

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