Question

• Briefly define, in your own words, the concepts of capitalism and socialism. Then list three pros and cons of each.

The specific course learning outcomes associated with this assignment are:

• Determine the considerations for and process of ethical business decision making to balance corporate and social responsibilities, and address moral, economic, and legal concerns.
• Analyze selected business situations using the predominant ethical theories, such as utilitarian, Kantian, and virtue ethics to guide ethical business decision making.
• Use technology and information resources to research issues in business ethics.
• Write clearly and concisely about business ethics using proper writing mechanics.

Answer 1

Capitalism and Socialism are economic system used by the countries to control their means of production.In Capitalist economies there is least government intervention in what to produce, how to produce and how much to produce and the cost is determined by the market forces.So it is a free market economy.In a Socialist economy the government decides what ,when and how to produce.This is centralized planning.In Capitalist economies1) people have incentive to work hard and innovate new products .2)They encourage the production of necessary goods and discourage the production of unnecessary goods.3)The market place self regulates and there is least government interference.However because1) market mechanism are self regulating there is no surety that everyone's needs will be fulfilled.2)Markets also create cycles of boom and bust.3)Capitalism makes room for 'crony Capitalism', monopolies and other means which cheat the people. Socialism provides for reduction in economic inequality.2)The government produces the goods people require to meet their needs even though they may not bring profit.3)Socialism helps people to make value judgements. In Socialism however1) people have less incentive to innovate as their basic needs are provided.2)Government planners may be corrupt. 3)There is no equality as influential individuals find them to be in a good position.

Business ethics means to make sure that managers and employees work responsibly in the workplace. The process of ethical business decision making involves six steps like taking time in defining the problem,leaders need to consult sources ,clarify things and take a proper decision to tackle the issue,the leaders should consider how the decision taken will affect others,leaders should find the mistakes other companies have made and learn from them,if the issue has become a problem it is necessary to bring the issue to the team and finally the decision taken should be implemented.

There are many ethical theories and Utilitarian theory says an act is morally acceptable if it provides benefit to the society as a whole.Kantian theory says it is intention rather than the consequences that matters when decision is in taken.The virtue theory states that virtues such as compassion etc are important to personal relations and decisions making should take virtues in consideration.

Technology and information resources play an important role in understanding business ethics . Learning how to deal ethically with customers,how to take ethical decisions are important in business and benefits business.

Ethical behavior can bring benefits to business . They attract customers and boosts sales and profits.Employees would not like to leave the business and productivity will increases.