...Capitalism & the Invisible Hand Throughout the history of civilization have been two forms of social administrations: Individualism which has taken the form of capitalism and collectivism which has taken many different forms, each form different from one another, such as socialism, communism, nazism, and etc. Capitalism is an economic system in which most of the means of production and distribution, such as businesses or factories, are not owned by the government but by the private individuals who operate them for profits. (“13b. Comparing Economic Systems.”) In the center of the free-market capitalism is the individual who has four basic rights: • The right to own private property. • The right to own a business and to keep the profits made by operating his business. • The right to freedom of competition. • The right of freedom of choice. (Nickels, Understanding Business) On the other hand, socialism is an economic system that calls for putting most of the means of production in the hands of government which will share the wealth and income more equally among people.( Nickels, Understanding Business) The main goal of socialism is to narrow the gap between the rich and the poor. Thus, the government has the responsibility to evenly distribute the wealth in order to make the society just and fair. (“13b. Comparing Economic Systems.”) An individual attempts to become wealthy, which explains why his focus is only on profits, but to achieve this goal he has to exchange...
Words: 974 - Pages: 4
...Due to the limited resources and unlimited human wants, whole world faces problem of scarcity. Therefore, capitalism is needed to solve these production decision such as what and how to produce the goods and services and distribution decision such as for whom to produce the goods and services. Capitalism is 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. In the country which works on capitalism system, the production and distribution decisions are made by private individuals who are free to pursue their self-interest and their decisions are coordinated and communicated through price signals which also means by profit motive in the market. I believe that the morality of capitalism is debatable, whether the capitalism is moral or immoral have to view it from different sides of perspective. Utilitarianism said that an action is judged as right, good, or wrong on the basis of its consequences. It emphasizes that greatest good for the greatest number of people. In other words, the goods have to be maximized for everyone affected by the decision (Weiss J.W., 2008). When all the costs are added and compared with the results, if the benefits outweigh the costs, then the action may be considered ethical. In a capitalist economic system, individuals have natural rights to property. They can possess, use and dispose the means of production or distribution such as equipment, machines...
Words: 1390 - Pages: 6
...Does the capitalist free enterprise system improve justice in society? In what way does it do so? In what ways does it not? Explain and defend your overall conclusion? “Capitalism can be defined ideally 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 (Shaw, Barry, & Sansbury, 2009, p.127).” Over the many centuries, capitalism has evolved from the emergence of capitalism during fifteenth and sixteenth centuries, mercantile capitalism, financial capitalism with the increased industrialisation and the intensified competition, to today’s globalised capitalism. Although, the names used to describe capitalism have been changed over the time, the dynamic nature of laissez-faire (to let people do as they choose) (Shaw et al., pp.131) in capitalism has never been changed. We have to admit that the free enterprise system has created the greatest productive power in all of our history and become the most influential socioeconomic system in the world. It is important that we understand the characters of the capitalist free enterprise system and how does this system work for our economy and society. Therefore, we are able to judge whether the capitalist free enterprise system improves justice in our society based on the moral principles. In the following paragraphs, it lists out important features within the capitalist free enterprise system and analyzes its strengths and weaknesses...
Words: 2161 - Pages: 9
...October 18, 2013 Socialism vs. Capitalism Contemporary History Professor Quincy Harris Capitalism and Socialism are two different types of systems. There lies a huge difference between the beliefs of both. I plan to discuss the differences of each and discuss the pros and cons of both as well as discuss which would be better for Americans. Sometime between 16th and 19th century capitalism first appeared. Once Feudalism failed Capitalism became the stronger system used in the western world. During the time of the Industrial Revolution Capitalism spread throughout the world. In order to become an industrialized nation then Capitalism had to be embraced. Socialism’s movement was started by Karl Marx (intellectual advocate.) Socialism is an economic system characterized by social ownership of the production and co-operative management of the economy. Socialism first appeared during the 19th century. According to (Historyworld.net).The essential characteristics of capitalism only become evident with an increase in scale in two quite separate contexts. One is the formation of joint-stock companies, in which investors pool their resources for a major commercial undertaking. The other, not evident until the Industrial Revolution, is the development of factories in which large numbers of workers are employed in a single private enterprise. Speculative trading enterprises in the Middle Ages are undertaken by individual merchants, operating in family groups or partnerships but...
Words: 1747 - Pages: 7
...Journal of Business Ethics (2007) 74:303–314 DOI 10.1007/s10551-007-9517-y Ó Springer 2007 Stakeholder Capitalism R. Edward Freeman Kirsten Martin Bidhan Parmar ABSTRACT. In this article, we will outline the principles of stakeholder capitalism and describe how this view rejects problematic assumptions in the current narratives of capitalism. Traditional narratives of capitalism rely upon the assumptions of competition, limited resources, and a winner-take-all mentality as fundamental to business and economic activity. These approaches leave little room for ethical analysis, have a simplistic view of human beings, and focus on value-capture rather than valuecreation. We argue these assumptions about capitalism are inadequate and leave four problems in their wake. We wish to reframe the narrative of capitalism around the reinforcing concepts of stakeholders coupled with value creation and trade. If we think about how a society can sustain a system of voluntary value creation and trade, then capitalism can once more become a useful concept. KEY WORDS: capitalism, stakeholder, ethics, economics, free market Introduction1 We live in the age of markets. While markets have been around for thousands of years, we are just beginning to understand their power for organizing society and creating value. In the last 200 years markets have unleashed a tremendous amount of innovation and progress in the West. The industrial revolution, the rise of consumerism, and the dawn...
Words: 7519 - Pages: 31
...an increase in the number of corporations; as capitalism has spiraled to a peak. While corporation’s products and services are needs and wants of the economy, their moral actions, or lack there of, are not, however, directly or indirectly affect us each day. Are corporations people? Can corporations be considered moral? Questions such as these have been raised by Shaw and Barry in the text Moral Issues in Business. While the answers to these questions are debatable, the infamous Enron Corporation shows us that while the people make up the company, the company as a whole receives the reputation of being immoral or unethical. We consider Kenneth L. Lay and Jeffery Skilling, the former president and CEO of Enron, the driving forces behind Enron’s bogus success and responsible for the moral code that should have been set for the organization. These unethical actions Enron took part in even had support by auditor, Arthur Anderson, and attorneys, Vinson & Elkin. The top leaders of Enron had a passion for capitalism, which drove the company to illegal and unethical behaviors, eventually leading to the catastrophic fall of the company. However, in order for Enron to deceive as long as they did without being caught, a lot of their actions were actually legal, but immoral. Enron’s use of mark-to market (MTM) accounting and taking advantage of energy deregulation in California, led to their “profit at all costs” mentality, legal, moral, or otherwise. Jeff Skilling and top executives...
Words: 3760 - Pages: 16
...Upon the hundredth anniversary of the Pope Leo XIII’s Rerum Novarum, an encyclical entitled Centesimus Annus was written by Pope John Paul in 1991 as the Cold War was coming to an end to promote ideals in accordance with the Catholic social teaching. Centesimus Annus addressed various economic and social issues. Pope John Paul II largely condemns communism and those who impose dictatorship upon others. The document also focuses on justice, particularly of social and economic nature. This includes, but is not limited to, the right to private property, and the right to assemble and form organizations/associations. As previously and extensively addressed in the Rerum Novarum by Pope Leo XIII, these topics are not the sole focus of this encyclical. Consequently, the main points addressed by Pope John Paul II include that of the role of the state in the protection of human rights, and this being true for all citizens. The various topics addressed incorporate the views and opinions of the Catholic Church including justice for the less fortunate, and the defense of human rights. Pope John Paul II states, “When there is question of defending the rights of individuals, the defenseless and the poor have a claim to special consideration. The richer class has many ways of shielding itself, and stands less in need of help from the State; whereas the mass of the poor have no resources of their own to fall back on, and must chiefly depend on the assistance of the State. It is for this reason...
Words: 1376 - Pages: 6
...Danny Whitford Francis Bacon, an English scientific philosopher of the late 16th and early 17th centuries, is best known for his advocacy of the scientific method during the scientific revolution. Also known as the Baconian Method, his scientific method revolves around inductive reasoning through which a series of conclusions can be made. He is known as the “Father of the Scientific Method” and the “Father of Experimental Science”. One of Bacon's most famous works is his History of Life and Death, in which he explains his observations and experimental conclusions about the prolongation of life by use of natural medicines and practices. His experimental approach to science with the use of inductive reasoning and trust of his senses was very influential in the Enlightenment during the 18th century. Bacon's scientific method formed the basis for modern science, and nearly all major scientific conclusions today rely on the inductive reasoning through observations of the senses that Bacon advocated. Nicolas Malebranche (Mal-brahnch), a French rationalist philosopher of the 17th and early 18th centuries, focused on rationalizing God's existence by means of the natural world rather than purely on faith and spirituality. His works, comparable to those of St. Augustine and René Descartes (Day-cart), attempt to show the active role of God in all aspects of the world and of human nature itself. Malebranche (Mal-brahnch) asserted that all human reasoning, thought, and cognitive...
Words: 1471 - Pages: 6
...BMO5501 BUSINESS ETHICS AND SUSTAINABILITY Assignment 2 : Reflective Journal Page 1. Overview 2-3 2. Table of Contents a) Business Ethics 4-5 b) Sustainability 6-7 c) Capitalism 8 d) Corporate Social Responsibility 9-11 3. References 12 Overview The three main topics of the course, Ethics & Business Ethics, Sustainable Development and Corporate Social Responsibility (CSR) are very relevant in today’s business world. The phasing and sequencing of readings starting with Ethics, then to Sustainability and ending with CSR provides a good foundation to the business practices of CSR. Without the foundational understanding of Ethics normative theories and Sustainability phenomenon and issues, and the concepts of socialism, capitalism, corporate citizenship, the readings and eventual learning about the subject of CSR would be more superficial and spiritless. The 4 key normative ethical theories of Egoism, Utilitarianism, Kant’s, Rights have very different moral reasoning in judging what is right or wrong, good or bad. Egoism is very individualistic and consequentialist. Utilitarianism is also consequentialist but based upon the aggregated greatest number of well beings. The opposite of these two are non-consequentialist, one theory is based on the motives – Kant’s categorical imperative and second theory is based on Rights, human rights and natural rights. Each ethical theory has its valid...
Words: 3166 - Pages: 13
...class, and crime as an inevitable outcome of the dog-eat-dog nature of the capitalist system, and the inequalities it generates. Crime also serves as a diversionary tactic, it diverts attention away from the exploitation and inequalities within the capitalism system and focuses the minds of the proletariat on deviants and criminals who are then mistakenly blamed for being the real cause of problems in society. However there are several variations in Marxist ideas on crime. Neo Marxists have developed critical criminology which has attempted to incorporate labelling theory and Brake has used subcultural theory to explain the attraction of youth groups. Assignment 2 – Using material from Item B and elsewhere assess the usefulness of Marxist approaches in explaining crime The traditional Marxist belief is a structural one as they see society as being based on a structure, this structure being determined and controlled by one of the two groups that they believe society is divided into. These two groups are the ruling capitalist class (bourgeoisie) who own the means of production, and the working class (proletariat) whose alienated labour the ruling class exploit to make profit. Item B draws on this point as it says “they see the law as a tool of the ruling class.” There are several variations in Marxist ideas on crime (Item B). Traditional Marxists talk more about the criminogenic nature of capitalism and the way the state makes and enforces laws in the interest of the ruling class...
Words: 2328 - Pages: 10
...COLUMNIST Capitalism for the Masses FEB. 20, 2014 Continue reading the main story David Brooks Continue reading the main storyShare This Page * EMAIL * FACEBOOK * TWITTER * SAVE * MORE Continue reading the main story When Arthur Brooks was 24, he was playing the French horn in a chamber music concert in Dijon, France. He noticed a beautiful woman smiling at him from the front row, so, after the recital, he made a beeline for her and introduced himself. Within seven seconds he came to two realizations. First, he was going to marry this woman. Second, she didn’t speak a word of English, and he didn’t speak a word of Spanish or Catalan, which were her languages. When he got home, he realized that if he was going to have a chance with Ester he was going to have to show some commitment. So he quit his job in America, moved to Barcelona and went to work with the Barcelona orchestra. Over the next few years, he learned Spanish and Catalan and Ester learned English. They have been happily married for 22 years. “Sometimes you just have to be all in,” says Brooks (who is no relation). “You have to go beyond cold utilitarian analysis.” Brooks later became a social scientist and is now president of the American Enterprise Institute, probably the most important think tank on the American right. He has emerged as one of the most ardent defenders of the free enterprise system. But the humanist that he is, he has primarily defended capitalism on moral terms. He’s...
Words: 991 - Pages: 4
...development of the western world, in particular capitalist countries. They believe that in a capitalist society, the owners of the means of production, the bourgeoisie, continually seek to exploit their labours, the proletariats for profit of their own gain. So majority off the working class who are the labourers work to earn a poor wage while the profit exceeds into the pockets of the owners, the business men, the ruling class. The owners of these productions control the state and institutions such as education and the media. The media portrays ideas to keep the working class under false class consciousness and alienation. If the proletariat members of society were to be class conscious then they would also be aware of the need to overthrow capitalism. Society as a whole alienates the working class by separating them from materials they have made or the work that they have done, stripping them of their identities. Keeping them away from other workers puts a stop to any thought processes about a revolution. If the working class became aware of this exploitation they could get together and either force or by both classes come to the agreement of their needing to be change towards the construction of new classless society. This is also a feature of Marxism, class consciousness. So there are two versions of Marxism establishes the structural and the humanistic Marxism. The founder...
Words: 830 - Pages: 4
...characteristics distinguishes moral standards from other sorts of standards? a. moral standards are purely optional b. moral standards take priority over other standards, including self-interest c. moral standards cannot be justified by reasons d. moral standards must be set or validated by some authoritative body 2. Choose the statement that gives the most accurate description of etiquette: a. the rules of etiquette are a fundamental branch of morality b. conformity with the rules of etiquette is sufficient for moral conduct c. etiquette refers to a special code of social behavior or courtesy d. the rules of etiquette are backed by statutory law 3. Our relationship with the law is best described by which of the following? a. To a significant extent, law codifies a society’s customs, norms, and moral values. b. The law is a completely adequate guide to the moral standards that we should follow. c. The law makes all immoral conduct illegal. d. Violating the law is always immoral. 4. Which of the following is not one of the four basic kinds of law? a. statutes b. constitutional law c. common law d. contractual law 5. A proper perspective of religion and morality is a. only religion can tell us what is right and wrong b. it’s not true that morality must be based on religion c. religion never influences people’s moral beliefs d. without religion, people wouldn’t have a reason to act morally 6. When religion and morality are considered, a. the moral instructions...
Words: 21479 - Pages: 86
...Capitalism can be defined ideally 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. Socialism is an economic system characterized by public ownership of property and a planned economy. Capital, as an economic concept, is closely related to private property. When traditional restraints are removed from the sale of goods and from wages and when all individuals have equal access to raw materials and markets the doctrine of laissez faire, from the French meaning “to let people do as they choose”. Oligopolies—a concentration of property and resources, and thus economic power, in the hands of a few. Corporation—an artificial being, Invisible, intangible, and existing only in the contemplation of law. Limited liability is a key feature of the modern corporation. Consumer sovereignty: the idea that consumers should and do control the market through their purchases. Dependence effect: as a society becomes increasingly affluent, wants are increasingly created by the process by which they are satisfied. Moral vegetarians are people who reject the eating of meat on moral grounds. 2 In my opinion, Wal-Mart is an example of a morally bad corporation. There are three reasons to improve that: (1) Unfair competition. Our textbook describe it like this: “Some critics of capitalism maintain that capitalism breeds oligopolies that eliminate competition and concentrate...
Words: 1707 - Pages: 7
...“Evaluate the view that religion is an important source of moral values in contemporary societies” The debate as to whether religion is a vital source of moral values in contemporary society is continuous. Sociologists aim to know and understand exactly how and if religion plays any role in current society. This leads us to ask what exactly religion is. According to sociologists, there are three main ways of defining religion: substantive, functional and social constructionist. Max Weber (1905) describes substantive religion as a belief in a superior or supernatural power that is above nature and cannot be explained scientifically. Substantive definitions are exclusive – they draw a clear line between religious and non-religious beliefs. To be a religion, a set of beliefs must include beliefs in God or the supernatural. Functional definitions, however, are inclusive – allowing sociologists to include a wide range of beliefs and practices. Emile Durkheim (1915) defines it in terms of contribution it makes to social integration rather than specific belief in a higher being. Milton Yinger (1970) identifies functions that religion performs for individuals, such as answering ‘ultimate questions’. Whereas, the final definition is social constructionist takes an interpretivist approach focusing how religion is defined by the individual. This definition believes that it is impossible to produce a single universal definition of religion to cover all cases since in reality different individuals...
Words: 5435 - Pages: 22
