an overview

1. ETHICAL ISSUES
IN CAPITALISM &
MARKET SYSTEM

2. Content
 Business ethics
 Ethical issues
 Capitalism
 Definition & Meaning
 Benefits & limitations
 Ethics in capitalism
 Market system
 Meaning
 Benefits & limitations
 Ethics in Market System
 Conclusion

4. BUSINESS ETHICS
THE SYSTEM OF LAWS AND
GUIDELINES BY WHICH BUSINESS
PROFESSIONALS AND
CORPORATIONALS OPERATE IN A
FAIR LEGAL AND MORAL FASHION

7. ETHICAL ISSUES
A problem or situation that requires a
person or organization to choose
between alternatives that must be
evaluated as right (ethical) or wrong
(unethical).

11. MEANING
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

14. Benefits of Capitalism
Automatic Working
Higher Rate of Capital
Formation
Economic Development &
Prosperity
Optimum Utilization of
Resources
Provide Choice to customers
Provides valuable goods &
services
Capitalism actively rewards
positive traits like hard work
 Similarly, it punishes negative
traits such as laziness & theft

15. Major limitations/Criticism
Accumulation of wealth
Monopolistic tendency
Human resource
exploitation
Downfall of work ethics
 Human welfare ignored
Inequality
Economic instability &
unemployment
Concentration of economic
power

17. MARKET SYSTEM

18. MEANING
A market system is an
economic system in which economic
decisions and the pricing of goods and
services are guided solely by the
aggregate interactions of a country's
individual citizens and businesses.
There is little government intervention
or central planning.

19. Benefits of Market System
 Market system
automatically responds
and adjusts to the
people’s wants
 Wider variety of goods
and services
 Competition pushes
businesses to be efficient
 Government does not
have to take decisions on
basic economic questions

20. Major limitations/Criticism
Factors of Production
is not employed if it is
not profitable
Free market may
encourage harmful
goods
Production may lead
to negative
externalities
Free market economy
may increase the gap
between the rich and
the poor

23. A company’s ethics will determine its
reputation
Good business ethics are essential for
the long-term success of an
organization
A company’s ethics will have an
influence on all levels of business
So we hope that all the
organization should maintain business
ethics.