The Fundamentals Of Economics With Modern Business...

Contrasting the Fundamentals of Economics with Modern Business Practices Divulging economist Adam Smith’s theory of wealth creation in William Nickels, James McHugh, and Susan McHugh’s book Understanding Business (2005), they summarize that despite a nucleus of self-interesting goals, business concludes by benefitting both self and extended community. Noting criticality in monetary reward for dedication and labor, Adam Smith believes an economy can prosper. Furthermore, in order for democratic capitalism to remain in balance and provision the greatest output, a culture of moral, ethical, and spiritual values are paramount. Sans these basic values, capitalism will fail. Exemplifying such failure is the 2006 verdict of Enron founder Kenneth Lay and Chief Executive Jeffrey Skilling. Convicted of conspiracy and security and wire fraud, these two men were sentenced to 165 and 185 years in prison respectively. This scandal not only tore their families apart, but affected the lives of 5,600 workers and their retirement futures. All of this was base d on greed and many decisions to evade accounting laws. Thus, despite a core desire of self-interest – aligning to Adam Smith’s theory – their lack of universal values in decision making resulted in immensely negative consequences. Napster, a web-based file sharing program (used namely for â€Å"sampling† music), stands another historical example of the power and fallout of poor business judgment. Allowing users free and unlimited access toShow MoreRelatedCorporate Social Responsibility ( Csr )1370 Words   |  6 PagesBusiness personalities, government officials, and loans are hedging more attention on the concept of Corporate Social Responsibility (CSR). The core issue is the appropriate responsibility of business. 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