BUSI 4705 Chapter Notes - Chapter 2: Business Ethics, Selfishness, Total Quality Management
22 Nov 2012
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Essentials of business ethics chapter 2: the ethical foundation of capitalism and the optimal ethics systems model. Free market capitalism is a significant ethical improvement over previous forms of economic arrangements. Adam smith formulated capitalism as an economic system ethically superior to mercantilism. Trained in protestant theology smith was aware that there would be infinite opportunities to act immorally in a free market system, but thought that most of the time individuals would choose to act morally. Selfishness = concern about oneself, without any concern about the well-being of others. Self interest = concern about oneself in relationship to the well-being of others. Smith concluded that human beings were driven by self interest. Smith believed people self regulated themselves based on moral sentiments, originating from the conscience, belief in god and natural concern for the well-being of others. Smith"s ethical defense of capitalism rests on the following beliefs: A free people naturally pursue their own self-interests.
