CLASS HAND-OUT

Economics for Better

Living: 01999041
Chapter 11: Ethics
and Good Governance
by
Assoc. Prof. Santiya Eag-ark
Chapter 11: Ethics and Good G
11.1 Objectves
11.2 Preface
11.3 Sources and meaning of Ethics.
11.4 Ethics of households
11.5 Ethics of community and society
11.6 Ethics of entreprenure
11.7 Good Governance
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 11.1 Objectves

To understand sources and meaning of

To understand ethics at all levels

Household
Community and society
Entrepreneurs and business owners.
To understand the role of ethics and go
on better living 3
11.2 Preface
In our daily life, we as a
human being face with ethical
problems both:
In the economy, we can be a
as anor
producer actor or as anorvictim.
a consumer a
service provider. We have to
make a choice and each choice
may related to ethical problem
such as:
Tax evasion VS. Tax avoidance
Corruption
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Tax evasion VS. Tax avoidance
https://www.youtube.com/watch?v=ClOenRSdPQA

Corruption
What is corruption
https://www.youtube.com/watch?v=npNF9ByzIsE

Top 10 Countries with the Most Corruption

https://www.youtube.com/watch?v=YtFWrvTNWLU

Destroy the environment

Human Affect On The Environment Wake Up call
https://www.youtube.com/watch?v=pZ9jsQadfoU
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11.3 Sources and meaning of Eth
11.3.1 Sources of Ethics
11.3.2 Meaning of Ethics
11.3.3 Ethics and Economics
11.3.4 Ethics and Business Manag

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11.3.1 Sources of Ethics
Ethics is a branch of philosophy: s
code of conduct which mean conduct
duty and ideology. Sources of ethics
1) Philosophy
2) Religion
3) Royal Guidance and Gover
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11.3.1 Sources of Ethics
1) Philosophy
Philosophers related to ethics
a) Plato believed that all human be
spirit from suffering.
A perfect life should be rational
sincere heart and juctice, do good t
not for others purpose.
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11.3.1 Sources of Ethics
1) Philosophy
Philosophers related to ethics
a) Plato explained that human sho
moral rules.
Wisdom

Courage

Temperance
Juctice
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11.3.1 Sources of Ethics
1) Philosophy
Philosophers related to ethics
b) Aristotle explained about the e
as following:
Good human life should go on w
doing his or her duties perfectly, ha
be restraint, be in good mood and
and be moderate. 10
11.3.1 Sources of Ethics
1) Philosophy
Philosophers related to ethics
b) Aristotle explained that human
Daily life

Social life

Peaceful life

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11.3.1 Sources of Ethics
1) Philosophy
Philosophers related to ethics
b) Aristotle explained 3 kinds of g
External goodness: fame, honor, degree, position.

Spiritual goodness: wisdom, happiness, morality.

Physical goodness: healthiness, physical integrity.

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11.3.1 Sources of Ethics
2) Religion
Religion is the important source o
Religion sets standard and ethical val
human believe which collects teachin
duties perfectly and goodness such a
Judaism

Islam

Buddhism
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11.3.1 Sources of Ethics
2) Religion
Judaism: Moses is the prophet of judaism. He established
10 commandments as rules for supreme goodness.

(1) Dont pay respect to other God.

(2) Pay respect to mother and father.

(3) To abstain from taking life of living beings.

(4) To abstain from taking what is not given or stealing

(5) To abstain from sexual misconduct.

ten commandments 10
https://www.youtube.com/watch?v=EptFf6om-78 14
11.3.1 Sources of Ethics
2) Religion
Islam: provide ethics for living, progressing in life and social
peacefulness.

(1) Be humble, pay respect to the elderly.

(2) Pay respect to mother and father.

(3) Good behave toward your neighbors.

(4) Helping the poor and those who have not.

(5) To abstain from revealing your friend secret.

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11.3.1 Sources of Ethics
2) Religion
Buddhism: provide ethics for living in Atthangika-magga:
the Noble Eightfold Path
Or Sikkha: the Threefold Learning; the Threefold Training.

(1) Adhisila-sikkha: training in higher morality.

(2) Adhicitta-sikkha: training in higher mentality .

(3) Adhipanna-sikkha: training in higher wisdom .

Morality, concentration, wisdom.

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11.3.1 Sources of Ethics
2) Religion
Buddhism: provide ethics for living in Atthangika-magga:
the Noble Eightfold Path
Or Sikkha: the Threefold Learning; the Threefold Training.

(1) Adhisila-sikkha: training in higher morality.

(1.1) Right speech .

(1.2) Right action .

(1.3) Right livelihood .

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11.3.1 Sources of Ethics
2) Religion
Buddhism: provide ethics for living in Atthangika-magga:
the Noble Eightfold Path
Or Sikkha: the Threefold Learning; the Threefold Training.

(2) Adhicitta-sikkha: training in higher mentality .

(2.1) Right effort .

(2.2) Right mindfulness .

(2.3) Right concentration .

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11.3.1 Sources of Ethics
2) Religion
Buddhism: provide ethics for living in Atthangika-magga:
the Noble Eightfold Path
Or Sikkha: the Threefold Learning; the Threefold Training.

(3) Adhipanna-sikkha: training in higher wisdom .

(3.1) Right view of right understanding .

(3.2) Right thought .

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11.3.1 Sources of Ethics
3) Royal Guidance and Governme

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11.3.1 Sources of Ethics
3) Royal Guidance and Governme

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11.3.1 Sources of Ethics
3) Royal Guidance and Governme

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11.3.2 Meaning of Ethics.

Ethics: ethics is a system of moral principles.

Ethics covers the following dilemmas:

how to live a good life
our rights and responsibilities
the language of right and wrong
moral decisions - what is good and bad?
.

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11.3.3 Ethics and Economics.

Mixed Economy: Capitalism & Socia

Three major characteristics:
Privately own resources.
Free competition.
Profit is one of the goals.

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11.3.3 Ethics and Economics.

Mixed Economy: Capitalism & Socia

Resource Allocation emphasizes:
Efficiency.
Rationality & Maximize utility.
For profit.

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11.3.3 Ethics and Economics.
According to the father of capitalis
It is not from the
benevolence of
the butcher, the brewer, or the
baker, that we expect our
dinner, but from their regard
to their own interest.
We address ourselves, not to 26

their humanity but to their

11.3.3 Ethics and Economics.
According to the father of capitalis

Moral Sentiments
Self-discipline

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11.3.3 Ethics and Economics.
PerfectCompetition
Perfect information and perfe
No transaction cost
Rational man
No one can influence the mar
Free to entry or exit
Homogeniety
No externality
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11.3.3 Ethics and Economics.
Economic activities and policies wit
the following negative impacts.
Unequal income distribution.
Materialism
Negative externalities
White collar crime
Corruption
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11.3.3 Ethics and Business Manag
Milton Friendman.

There is one and only one

social responsibility of business
- to business - to use its
resources and engage in
activities designed to increase
its profits so long as it stays 30

within the rule of the game,

11.3.3 Ethics and Business Manag
Archie Carroll.
Economics responsibility.
Legal responsibility.
Moral responsibility.
Voluntary responsibility.
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