Ethics
According to Rendtorff (206), ethics plays a significant role in economic debates. While the field of economics tends to focus on welfare outcomes, ethical consideration is of great importance as they also influence the success of a business. The economic paradigm is facing a crisis of legitimacy with the many dimensions of unethical issues. The global financial crisis and the collapse of Enron, among other cases, are believed to have occurred from the immorality of the economic world. The assumption that in economics, individuals only act in their economic self-interest and will conduct unethical behaviours if they are going to gain financial benefits is partially correct. We cannot conclude that all economist behaves unethically, but we do have examples such as the collapse of corporations like Enron that have resulted from unethical economist behaviors. Other dishonest instances in economics are regarding paying taxes. While there is tax evasion, which is immo
ral and illegal, there is also tax avoidance, which is unlawful and unethical (Braam, 209). The act of avoiding taxes forcefully through creative arrangements that are not approved by the state is wrong. Scandals such as the Panama Papers in 206 and Swiss / HSBC leaks in 205 are examples of how large corporations have ease of tax avoidance through global financial systems (Olivier et al., 209). Corporations are conducting tax games by transferring incomes between jurisdictions to take advantage of weak tax laws. The use of tax avoidance can lead to little or no corporate tax being paid. Failure to pay taxes as required by law leads to a decrease in government revenue, which negatively affects the citizens of a country (Crawford & Crawford, 209). Moreover, it is unfair for corporations to use resources of one country and transfer the profits to another, hence leaving the native land in a disadvantaged position. In general, many people in business tend to act unethically.