Reference no: EM133201283 , Length: Word Count: 3 Pages

Assignment - Center for Innovative Training and Education Business Ethics Discussion

Description - We have now covered the two most influential theories of ethics: Utilitarianism and Deontology.

We have also examined the implications of these theories in the context of the economic system.

The question is: What form of economic system is ethically justified?

Now consider the following case:

John Smith is a farmer who lives in South Texas. He owns a 60-acre orange grove (which is average size for a small family farm of this type). Every season, John needs to hire laborers to help harvest the oranges.

Each year John hires undocumented workers, most of who are from Mexico, to assist with the harvest. He pays these workers by the basket, but finds that on average they are paid about 25% below the federal minimum wage. Furthermore, John knows that if he can even find enough American citizens willing to do this work, he would have to pay them far above the minimum wage to do it. For this reason, John continues to employ the undocumented workers every season, despite the fact that this is illegal.

Notice that John has not engaged in any fraud or coercion when he employs the undocumented workers. As long as John wishes to bring these foreign workers onto his land, and as long as the workers come willingly, no fraud or coercion is involved. Furthermore, as long as the workers are willing to work for the lower wages that John pays them, no fraud or coercion has occurred. Therefore, this is a legitimate transaction according to free-market principles. In other words, if you endorse a free-market capitalist economic system, then you are committed to the view that the government should not prevent John from doing this.

1) Do you believe it is ethical for John to employ the undocumented workers? Why or why not? (You should make reference to one or more of the ethical theories to help justify your answer.)

2) Do you believe a free-market capitalist economy is an ethical economic system? Why or why not?

3) Is your view about a free-market capitalist economic system consistent with your view about John's practice of hiring undocumented workers? (In other words, if you endorse a free-market capitalist economic system, do you also endorse John's practice? OR If you do not endorse a free-market capitalist economic system, do you also not endorse John's practice?) If your views are not consistent, how do you explain the discrepancy?