How are Ethics and Economics related?


Economic institutions (ie. Businesses), usually create a code of Ethics which they adopt for the everyday running of business. This includes a code of conduct between workers and clients.



Businesses that pursued profit without respecting their own code of ethics, contributed to the 2007-2009 recession which was the largest financial crash since the Great Depression of 1929.



Economic regulations created by bureaucratic mandates in order to control businesses, created the opportunities for favour-trading between politicians and businesses.



When a business becomes a monopoly, concentrations of economic power and influence can occur.



A business monopoly can only persist if it is sanctioned by the state. The state is the only entity that can create regulations which make it difficult for competing businesses to enter the market.



Collusion between competing businesses will prolong the concentration of power and influence.



Collusion can only persist if the judiciary does not act against it. If the state creates regulations which are subjective and vague, the judiciary cannot make objective decisions.



A society with an objective and well defined system of property rights, contract rights and a government that abstains from favouritism, will flourish. This would automatically prevent the concentration of power.