Business ethics Flashcards
when did business ethics start to arise?
1970s
what is capitalism?
DEF - An economic system in which a country’s trade and industry are controlled by private owners for profit., rather than controlled by the state.
an economic system in which private actors own and control property in accordance with their own interest, and demand and supply freely set prices in markets in a way that can serve the best interest of society. The essential feature of capitalism is the motive to make profit.
Who is mostly associated with Capitalism?
Adam Smith (good friends with Hume) - Adam Smith an 18th century Scottish philosopher born in kirkaldy in 1723(a year before Hume) and god father of modern economics, he believes that the exchange of a transaction each party has their own interest in the outcome, but neither can obtain what they want without addressing what the other party wants. he says that it is the self interest of one that can lead to economic prosperity.
What’s the invisible hand, coined by Adam Smith in 1776
Definition: The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the invisible hand.
What are common issues in business ethics?
Bribery Deceptive advertising Price collusion Product safety Environment
What did novak think about capitalism?
Thinks companies need to go abit further than just follow the law.
To establish within the firm a sense of community and dignity upon employees.
Should satisfy customers with valueable goods and services.
make a contribution to societies surroundings.
what does Adam smith think about selfishness and self-interest?
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