ZeePedia

MORALITY IN INTERNATIONAL CONTEXTS:Free Markets and Rights: John Locke

<< THE ETHICS OF CARE (CONTD.):Morality in International Contexts
FREE MARKET & PLANNED ECONOMY:FREE TRADE THEORIES >>
img
Business Ethics ­MGT610
VU
LESSON 14
MORALITY IN INTERNATIONAL CONTEXTS
Thefollowing four questions can help clarify what a multinational corporation ought to do in
the face of these difficulties:
1. What does the actionreally mean in the localculture's context?
2. Does the action produceconsequences that areethically acceptable fromthe point of
view of at least one of the four ethical theories?
3. Does the local governmenttruly represent the will of itsentire people?
4. If the morally questionableaction is a common localpractice, is it possible to
conductbusiness there withoutengaging in it
Thischapter examines the ethicalaspects of the market systemitself--how it is justified, and
whatthe strengths and weaknesses of the system are fromthe point of view of ethics. It begins
by discussing the economicconditions in the U.S. at the close of the 20thcentury, when
proponents of industrial policy wereurging the government to help declining industries and
theirworkers to adjust to neweconomic conditions. Othersurged caution, advisingthe
government to "avoid the pitfalls of protectionism." This dichotomyillustrates thedifference
betweentwo opposite ideologies, those whobelieve in the "free market" and those who
advocate a "planned" economy.
These two ideologies take differentpositions on some very basicissues: What is humannature
reallylike? What is the purpose of social institutions? Howdoes society function? Whatvalues
should it try to protect?
In general, two importantideological camps, theindividualistic and communitarianviewpoints,
characterizemodern societies. Individualisticsocieties promote a limitedgovernment whose
primary purpose is to protect property, contractrights, and open markets.Communitarian
societies, in contrast, define theneeds of the community first and then define the rights and
duties of community membership to ensure that those needs are met.
These two camps face the problem of coordinating the economicactivities of their members in
twodistinct ways. Communitarian systems use a command system, in which a singleauthority
decideswhat to produce, who will produce it, and who will get it. Free market systems are
characteristic of individualistic societies. Incorporatingideas from thinkers likeJohn Locke and
AdamSmith, they allow individualfirms to make their own decisions about what to produce
and how to do so.
Freemarket systems have two maincomponents: a private propertysystem and a voluntary
exchangesystem. Pure free market systems would have absolutely no constraints on what one
can own and what one can do withit. Since such systems wouldallow things like slavery and
prostitution,however, there are no puremarket systems.
FreeMarkets and Rights: John Locke
JohnLocke (1632-1704), an Englishpolitical philosopher, is generallycredited with
developingthe idea that human beings have a "natural right" to liberty and a "natural right" to
privateproperty. Locke argued that if there were no governments,human beings wouldfind
themselves in a state of nature. In thisstate of nature, each manwould be the political equal of
allothers and would be perfectlyfree of any constraintsother than the law of nature--thatis,
31
img
Business Ethics ­MGT610
VU
themoral principles that God gave to humanity and that eachman can discover by the use of
hisown God-given reason. As he putsit, in a state of nature,all men would be in:
"A state of perfect freedom to order their actions and dispose of theirpossessions
and persons as they think fit,within the bounds of thelaw of nature, withoutasking
leave, or depending upon the will of any other man. A state also of equality, wherein
allthe power and jurisdiction is reciprocal, no one having morethan another...
withoutsubordination or subjection [toanother].... But... thestate of nature has a
law of nature to govern it,which obliges everyone: and reason, which is that law,
teachesall mankind, who will butconsult it, that beingall equal and independent,
no one ought to harm another in his life, health, liberty, or possessions."
Thus,according to Locke, the law of nature teaches us that we have a natural right to liberty.
Butbecause the state of nature is so dangerous, says Locke, individualsorganize themselves
into a political body to protecttheir lives and property.The power of government is limited,
however,extending only far enough to protect these very basicrights.
Locke'sviews on property rightshave been very influential in America. The FifthAmendment
to the U.S. Constitution even quotes Locke directly. In thisview, government does notgrant or
createproperty rights. Rather,nature does, and governmentmust therefore respect and protect
theserights. Locke's view thatlabor creates propertyrights has also beeninfluential in theU.S.
32
Table of Contents:
  1. INTRODUCTION:Business Issues
  2. INTRODUCTION (CONTD.)
  3. THEORY OF ETHICAL RELATIVISM
  4. MORAL DEVELOPMENTS AND MORAL REASONING
  5. MORAL REASONING:Arguments For and Against Business Ethics
  6. MORAL RESPONSIBILITY AND BLAME
  7. UTILITARIANISM:Utilitarianism: Weighing Social Costs and Benefits
  8. UTILITARIANISM (CONTD.):rule utilitarianism, Rights and Duties
  9. UNIVERSALIZABILITY & REVERSIBILITY:Justice and Fairness
  10. EGALITARIANS’ VIEW
  11. JOHN RAWLS' THEORY OF JUSTICE:The Ethics of Care
  12. THE ETHICS OF CARE:Integrating Utility, Rights, Justice, and Caring
  13. THE ETHICS OF CARE (CONTD.):Morality in International Contexts
  14. MORALITY IN INTERNATIONAL CONTEXTS:Free Markets and Rights: John Locke
  15. FREE MARKET & PLANNED ECONOMY:FREE TRADE THEORIES
  16. LAW OF NATURE:Theory of Absolute Advantage, Comparative Advantage
  17. FREE MARKETS AND UTILITY: ADAM SMITH:Free Trade and Utility: David Ricardo
  18. RICARDO & GLOBALIZATION:Ricardo’s Assumptions, Conclusion
  19. FREE MARKET ECONOMY:Mixed Economy, Bottom Line for Business
  20. COMPETITION AND THE MARKET:Perfect Competition
  21. PERFECT COMPETITION
  22. MONOPOLY COMPETITION:Oligopolistic Competition
  23. OLIGOPOLISTIC COMPETITION:Crowded and Mature Market
  24. OLIGOPOLIES AND PUBLIC POLICY:Ethic & Environment, Ozone depletion
  25. WORLDWATCH FIGURES:Population Year, Agriculture, Food and Land Use
  26. FORESTS AND BIODIVERSITY:The Ethics of Pollution Control
  27. THE ETHICS OF POLLUTION CONTROL:Toxic Chemicals in Teflon
  28. THE ETHICS OF POLLUTION CONTROL
  29. THE ETHICS OF POLLUTION CONTROL:Recommendations to Managers
  30. COST AND BENEFITS:Basis of social audit, Objectives of social audit
  31. COST AND BENEFITS:The Ethics of Conserving Depletable Resources
  32. COST AND BENEFITS:The Club of Rome
  33. THE ETHICS OF CONSUMER PRODUCTION AND MARKETING:DSA Comments
  34. THE ETHICS OF CONSUMER PRODUCTION AND MARKETING:Should Consumers Bear More Responsibility?
  35. THE CONTRACT VIEW OF BUSINESS' DUTIES TO CONSUMERS
  36. THE CONTRACT VIEW OF BUSINESS' DUTIES TO CONSUMERS:The Due Care Theory
  37. THE SOCIAL COSTS VIEW OF THE MANUFACTURER’S DUTIES
  38. ADVERTISING ETHICS:The Benefits of Advertising, The harm done by advertising
  39. ADVERTISING ETHICS:Basic Principles, Evidence, Remedies, Puffery
  40. ADVERTISING IN TODAY’S SOCIETY:Psychological tricks
  41. ADVERTISING IN TODAY’S SOCIETY:Criticism of Galbraith's Work
  42. ADVERTISING IN TODAY’S SOCIETY:Medal of Freedom
  43. ADVERTISING IN TODAY’S SOCIETY:GENERAL RULES, Substantiation
  44. ADVERTISING IN TODAY’S SOCIETY:Consumer Privacy, Accuracy
  45. THE ETHICS OF JOB DISCRIMINATION:Job Discrimination: Its Nature