Business Ethics in the Context of Catholic Social Teaching #3

Week 1 Assignment 1. Market ethics in itself does not include a requirement that market actors consider any interests but their own. How does this conflict with gospel values? The two variables differ in that the former is characterized by a self-centered nature that overlooks the primacy of upholding the common good at all times. Gospel values are focused on ensuring that the good of all people and the whole person are upheld at all times. However, market ethics are characterized by selfishness that fails to bother about the welfare of others and is unsupportive of the common good. Market ethics also imply that the competitive actors are dominant; thus conflicting the gospel values regarding the equality of all persons in dignity. 2. A company doesn't buy provide health insurance for their employees. a) How would economists describe this? If an organization fails to offer health insurance cover to its workers, economists will describe it as a cost-saving initiative. The logic behind the economic argument for cost saving is based on market ethics that guide actors to consider their interests only. Therefore, the business’ failure to pay such benefits to its employees is viewed as a form or source of savings for the company regardless its effect on the employees. b) In the Collins article what was this called? In the article, the phenomenon is referred to as the externalization of a cost. 3. Type of Market failure The situation presents a market failure known as externalities or spillovers. The nature of market failure causes costs or negative externalities to third parties who lack the direct involvement in the causative activity. 4. Define and give an example of fraud. Why is it unethical in market ethics? Fraud is the deliberate act of formulating and implementing a deceptive act with the aim of deriving an unlawful or undeserved benefit at the expense of another party (the victim). An example of fraud is a credit card fraud where malicious individuals can extract data from the cards of an unsuspecting individual and use it to withdraw their funds without their consent. Fraudulent activities are unethical in market ethics because they can lead to undesired outcomes such as losses. Imperatively, fraud is a self-centered and selfish initiative that contravenes the common good. 5. A business hires an interior designer to redecorate their offices. Is the designer an agent or a fiduciary of the company? Why? An hired designer by a company to redecorate their offices is an agent to the organization. The agent is hired to perf...

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Business Ethics in the Cont...

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