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.
 WHY ETHICAL ISSUES
INVOLVED IN CAPITALISM
AND MARKET SYSTEM
• 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
 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.