capitalism environment

8/17/2019 capitalism environment

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The CapitalisticEnvironment

Gerard Betros

Module 2

MGT2204 Business Ethics and Governance


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Overview• Indentify the nature and key features of

capitalism

•

nderstand the moral !usti"cations forcapitalism

• #riti$ue capitalism

• Identify the nature and key features of

workers% co&operatives• Identify worker co&operativism as a possi'le

(third way) to or*anise


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Ideolo*y• + widely&held viewpoint that may 'e re*arded

as (social formulas)

•

,escri'es a distorted or illusory form ofthou*ht which departs from a criterion ofo'!ectivity -Macey. 2000. p/ 13/

• (,istorted reality) versus (true consciousness)

•

+lternatives are often considered unima*ina'le• #apitalism the dominant ideolo*y in the 5est

• Mask covert forms of power and *oesundetected as a conse$uence


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#apitalism6chweickart%s 7 features of capitalism8Bulk of the means of production are privately

owned

9roducts are e:chan*ed in a market socompetition determines prices -not*overnment3

Most people who work for pay work for otherpeople. who own the means of production/


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;ey


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Moral !usti"cations for capitalism• The natural ri*ht to property

– =ohn >ocke people are entitled to the fruits oftheir work

• +dam 6mith%s the ?invisi'le hand%

– 5hen people are left to pursue their owninterests. they will. without intendin* it.produce the *reatest *ood for all/

– (in a two&horse race. 'ack self&interest 'ecauseyou know it%s tryin*/

– #apitalism stimulates economic *rowth


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#riticisms of #apitalism• Economic ine$uality

– @ich *et richer and the poor *et poorer/

–

,efenders ar*ue8• Government interference causes ine$uality ->i'erals3

• 6ome call for a modi"ed system -6ocial ,emocrats3

• Bene"ts outwei*h the weaknesses

– =ohn 6tuart Mill8 (To work at the 'iddin* and forthe pro"t of another is not a satisfactory stateto human 'ein*s of educated intelli*ence. whohave ceased to think themselves inferior tothose they serve/)


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#riticisms of capitalism• Auman nature and capitalism

• +ssumption that people make rational

decisions that are always in their 'estinterests/

• 9eople are inherently more (socially&minded)than competitive -9eople%s response in the

recent oods serves as a *ood e:ample/3• The pursuit of material *oods does not 'rin*

happiness

• OCers no (hi*her sense) of human purpose/


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#riticisms of #apitalism#apitalism 'reeds oli*opolies that eliminate

competition and concentrate economic power/

The system of corporate welfare protectsmany 'usinesses from true marketplacecompetition/

#ompetition is not a ?*ood%/

E:ploitation and alienation


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Today%s economic

challen*es The decline of manufacturin* in the 5est

Outsourcin* !o's

Trade de"citsE:clusive focus on the short&term

#han*in* attitudes towards work


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+ third wayD Mondra*on>I;8

http8FFwww/mondra*on&corporation/comFen*F

5orkers cooperative+ non capitalist "rm that operates most

successfully in a capitalistic marketenvironment


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Mondra*on%s 0 Basic 9rinciples• Open mem'ership

• ,emocratic or*aniation

• 5orker soverei*nty

• Instrumental and su'ordinate nature of capital

• 9articipation in mana*ement

• 5a*e solidarity

•

#o&operation 'etween co&operatives• 6ocial transformation

• niversal nature

• Education

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capitalism environment