Does Business Ethics Make Economic Sense?

Abstract

The importance of business ethics is not contrdicted in any way by Adam Smith’s pointer to the fact that our “regards to our own interests” provide adequate motivation for exchange. There are many important economic relationships other than exchange, such as the institution of production and arrangements of distribution. Here business ethics can play a major part. Even as far as exchange is concerned, business ethics can be crucially important in terms of organization and behavior, going well beyond basic motivation.