TOPIC 3 JUSTICE AND MARKET SYSTEM
FREE MARKET (CAPITALIST) SYSTEM
● DEF: economics decisions are taken by individual/firms 公司
● No government intervention 干涉
● Rights of individual to accumulate wealth and maximize potential
● Competition encouraged
● Major decisions:
1. What to produce
2. How to produce
3. For whom to produce
● Decisions in a market made on:
1. Basis of prices
2. Supply and demand
RIGHTS OF INDIVIDUALS UNDER FREE MARKET SYSTEM
● Own private property
● Own a business and keep all profits after tax
● Freedom to compete accumulation of wealth
● Freedom in consumption goods and services
● Freedom of choice based on ability to pay
JUSTICE
● =fairness
● Interchangeably 互换性although for serious cases
● Good ones – be rewarded
● Bad ones – be punished
● Associated with probit 廉洁、virtue & legality
● Serving administration of rights, rewards and punishments
JUSTICE, A SOCIAL PROCESS
1. Quality of being morally just or righteousness, fairness and equity in just conduct and
dealing with others
● Self-interest = balance with altruistic利他的 regard, respecting rights of others
2. Maintenance of rights - exercise of authority/power
● Right can be vindicated 平反
● With distribution of quiatable reward/punishment
3. Process constraints action
● By rules/processes/procedures
● Defines as duty/imperatives
JUSTICE & BUSINESS ETHICS
● concept of justice is relevant to business ethics
● distribution of benefits and burdens
, ● evaluating various forms of social organization
● justice of the economic system in which business activity takes place
ARISTOTLE & JUSTICE
1. Universal Justice
● just/morally person
● Morally right
● Obeys law
2. Particular Justice
● Concerned in virtue specific situations
*unjust person : takes too much wealth, honor or other benefit that society offers & refuse to
bear a fair share
FORMS OF JUSTICE (ARISTOTLE)
1. Universal Justice (Procedural)
● Administering justice, fair and impartial rules
2. Particular Justice
A. Corrective/compensatory
-Quranic verse 178 of Surah AlBaqarah
B. Retributive (extent of punishment, fit the offense)
-”Qisas” principle of AlQuran
C. Distributive (distribution of benefits and burden)
JUSTICE AND COMPETITIVENESS
● Compete to pursue self-interest
● Issue of inequality of distribution
● Different treatment be justified by citing relevant differences
JOHN RAWLS - THEORY OF JUSTICE / EGALITARIAN THEORY
● Related to distributive justice
● distribution of society's benefits and burdens while applying the free market system
● Assumption:
1. Conflict should be settled by devising a fair method
2. Choosing the principles by which conflict are resolved
3. Exp: having contract between parties
THE EGALITARIAN THEORY
● John Rawls uses the notion of contract
● formulates an original position
● 2 basic principles:
1. PRINCIPLE 1: Principle of Equal Liberty
2. PRINCIPLE 2:
A. Difference Principle
B. Principle of Fair Equality of Opportunity
, PRINCIPLE 1: Principle of Equal Liberty
● Person - equal right - most extensive total system of basic liberties
● Basic rights
● Equal share
● Most reasonably expect
● Given the requirement of unanimous agreement
● Citizen’s liberties must be protected from invasion 入侵 by others
PRINCIPLE 2:
● Difference Principle
➢ to the greatest benefit of the least advantaged
➢ Productive society will incorporate inequalities
➢ Improve the position of most needy members
● Principle of Fair Equality of Opportunity
➢ attached to the offices and positions open to all
➢ Fair equality of opportunity
➢ Given an equal opportunity to qualify for the more privileged positions in society’s
institution
● Condition under rational
● Self-interest persons make exception to the PRINCIPLE 1 and accept less than an
equal share of some primary goods
PURPOSE OF ARISTOTLE & RAWL THEORIES
● Means for evaluating existing
● Proposed institutional arrangements
● Market system promotes utility & protects rights
● Doubly-justified
VIRTUE OF JUSTICE AND HONESTY AS IN ALQURAN
● Allah has promised those who believe (in the Oneness of Allah-Islamic Monotheism) and
do deeds of righteousness, that for them there is forgiveness and a great reward
FREE MARKET (CAPITALIST) SYSTEM
● DEF: economics decisions are taken by individual/firms 公司
● No government intervention 干涉
● Rights of individual to accumulate wealth and maximize potential
● Competition encouraged
● Major decisions:
1. What to produce
2. How to produce
3. For whom to produce
● Decisions in a market made on:
1. Basis of prices
2. Supply and demand
RIGHTS OF INDIVIDUALS UNDER FREE MARKET SYSTEM
● Own private property
● Own a business and keep all profits after tax
● Freedom to compete accumulation of wealth
● Freedom in consumption goods and services
● Freedom of choice based on ability to pay
JUSTICE
● =fairness
● Interchangeably 互换性although for serious cases
● Good ones – be rewarded
● Bad ones – be punished
● Associated with probit 廉洁、virtue & legality
● Serving administration of rights, rewards and punishments
JUSTICE, A SOCIAL PROCESS
1. Quality of being morally just or righteousness, fairness and equity in just conduct and
dealing with others
● Self-interest = balance with altruistic利他的 regard, respecting rights of others
2. Maintenance of rights - exercise of authority/power
● Right can be vindicated 平反
● With distribution of quiatable reward/punishment
3. Process constraints action
● By rules/processes/procedures
● Defines as duty/imperatives
JUSTICE & BUSINESS ETHICS
● concept of justice is relevant to business ethics
● distribution of benefits and burdens
, ● evaluating various forms of social organization
● justice of the economic system in which business activity takes place
ARISTOTLE & JUSTICE
1. Universal Justice
● just/morally person
● Morally right
● Obeys law
2. Particular Justice
● Concerned in virtue specific situations
*unjust person : takes too much wealth, honor or other benefit that society offers & refuse to
bear a fair share
FORMS OF JUSTICE (ARISTOTLE)
1. Universal Justice (Procedural)
● Administering justice, fair and impartial rules
2. Particular Justice
A. Corrective/compensatory
-Quranic verse 178 of Surah AlBaqarah
B. Retributive (extent of punishment, fit the offense)
-”Qisas” principle of AlQuran
C. Distributive (distribution of benefits and burden)
JUSTICE AND COMPETITIVENESS
● Compete to pursue self-interest
● Issue of inequality of distribution
● Different treatment be justified by citing relevant differences
JOHN RAWLS - THEORY OF JUSTICE / EGALITARIAN THEORY
● Related to distributive justice
● distribution of society's benefits and burdens while applying the free market system
● Assumption:
1. Conflict should be settled by devising a fair method
2. Choosing the principles by which conflict are resolved
3. Exp: having contract between parties
THE EGALITARIAN THEORY
● John Rawls uses the notion of contract
● formulates an original position
● 2 basic principles:
1. PRINCIPLE 1: Principle of Equal Liberty
2. PRINCIPLE 2:
A. Difference Principle
B. Principle of Fair Equality of Opportunity
, PRINCIPLE 1: Principle of Equal Liberty
● Person - equal right - most extensive total system of basic liberties
● Basic rights
● Equal share
● Most reasonably expect
● Given the requirement of unanimous agreement
● Citizen’s liberties must be protected from invasion 入侵 by others
PRINCIPLE 2:
● Difference Principle
➢ to the greatest benefit of the least advantaged
➢ Productive society will incorporate inequalities
➢ Improve the position of most needy members
● Principle of Fair Equality of Opportunity
➢ attached to the offices and positions open to all
➢ Fair equality of opportunity
➢ Given an equal opportunity to qualify for the more privileged positions in society’s
institution
● Condition under rational
● Self-interest persons make exception to the PRINCIPLE 1 and accept less than an
equal share of some primary goods
PURPOSE OF ARISTOTLE & RAWL THEORIES
● Means for evaluating existing
● Proposed institutional arrangements
● Market system promotes utility & protects rights
● Doubly-justified
VIRTUE OF JUSTICE AND HONESTY AS IN ALQURAN
● Allah has promised those who believe (in the Oneness of Allah-Islamic Monotheism) and
do deeds of righteousness, that for them there is forgiveness and a great reward
