Business Ethics vs. Capitalism Essay

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The concept of business ethics has tried to change the way businesses operate over the years. Business ethics is a form of ethics that governs the actions of businesses to circumvent the affects business has on every day society. But some question its effectiveness in the application of capitalism. Several case studies have shown that this is the case; many companies place the pursuit of money in front of the pursuit of virtue. Although, the majority of companies are not in the spotlight of acting unethically, can we conclude that they follow the ethical norms? It is natural for normal human beings to act ethical but businesses are on a completely different playing field. But could business ethics be clearly possible in capitalism?…show more content…
Businesses will compete with each other giving consumers the advantage and therefore help the economy profit. Friedman believes that capitalism the economy will take care of itself and any outside forces would disrupt its process. In capitalism the worker is a commodity in so as to produce the products needed for the market. Each individual does what they are best at producing and if everyone does this then each person’s needs are taken care of. When each person is working they are paid money for their labor. With this money they can buy goods, which can fulfill their own desires, and so the trading of money for goods can take place in a capitalist market driving the economy forward (Smith 158). Capitalism depends on a free economy but does business ethics shake the very structure of a free economy? Some critics agree that business ethics infringe on the right of a free capitalist economy but others say that businesses are not following their social responsibility and so there should be a place for business ethics in a capitalist economy. But what kinds of ethics would be applicable to a free market economy such as capitalism? In business ethics there are several different types of ethical behavior that exist. Although there are many different kinds of ethical behavior, three are the most prevalent within society; these are utilitarianism, deontology, and virtue ethics. In Utilitarianism ethical

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