The idea that economics is thoroughly divorced from ethics has been disturbingly persistent among general audiences. While the premises for the specified assumption could be seen as understandable given the multiple examples of global companies engaging in dishonest practices to multiply their benefits, economics should be seen as inseparable from ethics. The idea of combining ethics and economics is not an oxymoron since ethical business practices represent the only foundation for healthy economic relationships and the resulting growth of businesses.
The main reason why placing ethical standards alongside economic interactions is not an inherently absurd action but, instead, a major necessity concerns the importance of ensuring that the needs of all parties are met and that no breach of legal regulations or other established practices occurs (Albareda and Sison 729). Compliance with ethical principles in the context of economics creates mutual trust and the foundation for building new business connections, thus, allowing the economies involved to flourish.
Understandably, the need to prioritize the issues about a participant’s interests is likely to create scenarios where engaging in fraudulent activities for a quick yet sizeable gain becomes unbearably alluring. However, the specified path will inevitably lead to the discovery of the deception and the resulting cancellation of any further cooperation (Albareda and Sison 731). Since the specified outcome is detrimental to economic development and alignment with the principles of economics, “ethics and economics” as a tandem must not be viewed as an oxymoron.
The very nature of economics must be seen as inherently related to ethics due to its primary focus. Despite the common belief of economics revolving primarily around the issue of money and financial transactions, numerous scholars point out that economics incorporates the study of people and their behaviors as participants of trade relationships in an economic context (Albareda and Sison 732). Therefore, ethical standards must apply to economics, making the two entities inseparable.
Indeed, a quick consideration of the examples of companies breaking ethical standards indicates that their actions have not only demolished their credibility, but also contributed to the deterioration of economic relationships. For instance, the infamous case of Enron fraud has led to a significant increase in mistrust toward the idea of stock participation in American citizens, causing multiple smaller companies to dissolve (Tang et al. 921). As a result, SMEs, which constitute a crucial part of the U.S. economy, suffered significant damage, which undermined the state’s economy (Tang et al. 935). Consequently, the interactions between the primary concepts of economics resulting in the sunken costs and lost benefits, have confirmed the need for economics to be viewed as inseparable from ethics.
Since ethics represents the key requirement for companies to maintain credibility and customer loyalty, the concept of ethics and economics as an inseparable entities must not be seen as an oxymoron. Instead, economics must be seen as inseparable from ethics. In the grand scheme, ethics should also be considered connected to economics since ethical principles must be followed in every aspect of people’s interactions, including trade. Therefore, while building an economics-related setting where ethical standards are followed is quite difficult due to the challenges associated with the promotion of respective moral values and principles to all participants, economics itself is not divorced from ethics. Quite the contrary, the two combine naturally and allow for robust and fruitful collaboration.
Works Cited
Albareda, Laura, and Alejo Jose G. Sison. “Commons Organizing: Embedding Common Good and Institutions for Collective Action. Insights from Ethics and Economics”. Journal of Business Ethics, vol. 166, no. 4, 2020, pp. 727-743. Web.
Tang, Thomas Li-Ping, et al. “Monetary Intelligence and Behavioral Economics across 32 Cultures: Good Apples Enjoy Good Quality of Life in Good Barrels”. Journal of Business Ethics, vol. 148, no. 4, 2018, pp. 893-917. Web.