According to Heath, the rationale we’ve a market-primarily based economic system, as opposed to a command financial system, is as a result of markets are more environment friendly. But markets fail, as a result of imperfect info, externalities, transaction costs, and more. The state corrects for a lot of market failures by way of regulation. We set limits on air pollution and require truth in promoting, amongst different issues. But we’d not need, and we cannot write, regulations to handle every market failure.
One method to consider business ethics is by way of the ethical obligations of agents engaged in business exercise. This query is often described as a query of “corporate moral company” or “corporate ethical accountability”. Here ‘company’ does not refer to the company as a authorized entity, however to a collective or group of individuals. To be exact, the query is whether companies are ethical agents and … Read MoreRead More »