Ethics in Economic Field

¶ … ethics within the field of economic research. The first step will be to introduce the topic of ethics. This introduction will explain the basic definition of ethics and some of the fundamental concepts. It will outline why the issue of ethics is so controversial. The thesis, which concludes the introduction, is that economic researchers will tend to reach conclusions that support the views of their financial backers.

The paper will begin with an overview of a few recent cases where economic researchers appear to tread on ethical violations. These cases will allow for in-depth discussion of the issue. The cases will illustrate some of the dilemmas, each of which will be covered in the body of the paper. In particular, the issue of disclosure will be analyzed. It is reasonable that researchers will have bias, but economic researchers seldom disclose their biases publicly, preferring to take the appearance of impartiality.

Such lack of disclosure may well be legal, but it does point to an ethical dilemma surrounding the motivation. If the motivation for conducting the research is suspect, or the motivation for the hypotheses tested is suspect, this calls into question the very validity of the research.

After the in-depth explanation of the ethical dilemmas that are raised, conclusions will be drawn. Multiple examples will be sought out, regardless of whether or not they support my hypothesis. The findings will then be analyzed and some conclusions reached about the ethics of producing economic research that supports the views of your financial backers.

Introduction

The issue of ethics has become one of the most controversial topics in the public sphere in the past several years. Waves of corporate scandals in the earlier part of this decade, the subprime crisis, and money-losing banks spending bailout funds on bonuses are among the most prominent debates surrounding ethics. Yet, ethics impact all aspects of our lives. Ethics represent the moral codes by which a society governs itself. Ethics are specifically applied to interactions with others. From each action we take flows a reaction. The topic of ethics reflects society's concern with how the actions of one actor affect other actors in our society.

Each action we take in our personal lives and each action we take in the workplace is guided by an internal code of ethics, a moral compass that tells us whether the action is "right" or "wrong." Yet, there is no definition of right and wrong. Our laws and religious texts will attempt to codify rules by which to live, but they cannot codify our ethics. Ethics reflect individual choices, but ones that are guided by the norms in our given society or the norms that are typically applied to that particular situation.

That ethics has become so controversial reflects the individual nature of ethics. Each individual choice is imbued with certain ethical assumptions, but those assumptions will vary from person to person. Only when those assumptions are shared by a large enough segment of society do they become norms. For the individual, the choice often becomes the decision between one's personal code of ethics and that of society as a whole.

Even the way ethics are measured is controversial. Some measure ethics based on outcomes, a school known as consequentialism; others measure ethics based on the decision itself, regardless of outcome. This is the deontological school of ethics. Our legal system is based mainly on deontological ethics, yet our laws do not cover the full gamut of deontological ethical violations.

While ethics in business and among politicians grab headlines, ethical dilemmas touch every aspect of society. Within economics, for example, significant controversy can arise when economists disagree. Often, there are ethical considerations to these disagreements. These stem from the ethics associated with motivation.