Ethics In Economical System

INDEX
INTRODUCTION
- ETHICS
-ECONOMIC SYSTEM
TYPES OF ECONOMY
IMPORTANCE OF ETHICS IN ECONOMY
ETHICAL ECONOMY
ETHICS AND VALUES IN INDIAN ECONOMY
BLACK MARKETING AND BLACK MONEY
CORRUPTION

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 Introduction

Ethics
The branch of knowledge which deals with moral principles values and behavior

Economic System:
An economic system is a means by which societies or
governments organize and distribute available resources,
services, and goods across a geographic region or
country.
It regulates the factors of production, including land,
capital, labour, and physical resources.
 Types Of Economy
1. Socialist Economy

In this system the production is owned by Public or government .

2. Capitalist Economy

 In this system production is owned by private individuals.

3. Mixed Economy

 Production is held by both private companies and public or State ownership.

 Importance of Ethics In Economy
Creating Long Term Securing the Uniting
Credibility Gains Society People and
Leadership
Improving Satisfying
Decision Basic Human
Making Needs

Ethics tries to create a sense of right and wrong in the organizations and often
when the law fails, it is the ethics that may stop organizations from harming
the society or environment

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 Economic Growth Across The World
SOURCE- WORLD ECONOMIC
OUTLOOK

Countries with most

ethical economy :
Netherlands
Denmark
Canada
Australia

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 Ethical Economy

Ethical Economy analyses the impact of rules, virtues, and goods or

values on economic action and management. 

ECONOMY VALUE ETHICS

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 Ethics And Values
In Economy
• Ethics and values have guided the Indian
economy and business since ancient times

• At the local business and society levels,

higher human qualities such as help, faith‐based
business transactions and basic norms are
present even today, especially at the non‐
corporate level.

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Here we are taking the example of the two most ethical companies of the Indian economy

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 Black Marketing And Black Money
Some of the unethical practices which has an impact on the
economic system are:
 Black Marketing : buying and selling of products and services
take place in an illegal manner.
Also known as  black economy, underground market, shadow
economy, underdog and parallel economy.

 Black Money: In India, black money is funds earned on the black

market, on which income and other taxes have not been paid.

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 Effects of Black Marketing on Economy

•Governments loses its revenue

•Losses suffered by domestic industries
•Underestimation of national income
•Creation of Shortages

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 Corruption
.

Corruption  involves the misuse of power in the form of money or authority to achieve certain goals
in illegal, dishonest, or unfair ways

Corruption can lead to an uneven distribution of wealth.

In a corrupt economy, resources are inefficiently allocated and

companies that otherwise would not be qualified to win
government contracts .

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 Conclusion

• Ethics plays an important part in successful rise of the economy.

• Ethical and unethical practices followed by the companies can also impact
the economy.

• The companies practicing unethical ways to gain profits , are unable to

function efficiently or
prosper at an economic level, causing suffering for society as a whole.

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