Imperative rule, basic and ethical values that are conducive to grasp what is right or wrong and good or bad is called morality. It is generally adopted behaviour to develop a critical and rational judgement and assist in achieving socially strong bonds. The situation in which ideal coordination between action and emotions in different situation is maintained to generate the ethical values. Adam Smith’s opinions about morality and self interest will be discussed in this essay. Adam Smith was renowned as father of contemporary economy who utilised his critical thinking to take avail of the chances and overcome obstacles in business field.
In modernised era, Adam Smith is recognised as a famous monetary analyst because he tried to gain self interest with the concept of moral values. Smith focused on an incorrect comparison between self interest and morality in initial part because he reckoned that considering about the wellbeing of society is helpful with self interest concept, but he did not observe. According to his philosophy, business and society are mutually interrelated, that’s by companies must perform them cooperate social responsibilities because public interests is relied on private owners also. He wrote two books WN and TNS, first emphasised on profitable approach and another one focused on ethics. He explained self centered approach in both books, in second books, TNS, he discussed sympathy with factor of self interest to make rational decision, but it was looking artificial approach.
In next phase, ethical approach of Smith was appearing suited with financial matters, but it resisted the business commitments towards success and equality. He prioritised achievement and opportunity-oriented strategy to be triumphant in commercial sector earlier than their autonomy and prosperity however he was once conscious about moral problems precisely. He enhanced commercial society culture by creating labour groups, property legal guidelines and reliance on new stakeholder to make robust commercial enterprise bond. He discovered that market, technical innovations and labour union enterprises stimulate the productivity and wealth of economic system such as during ancient time, price of products diminished lower than cost of manufacturing however with the injection of high labour fee it was worthwhile. Smith was considering about the produce profit by gaining advantage of grants and tax rebates, but it opposed to other professional interest. To develop justice and equality, lassie faire economy should be adopted, and price of goods must be economical and appropriate pay rate should be set. Hereby, market competition as well as growth of nation could be influenced positively. Today, business and society have interdependence relation because both dependent on each other such as businesses run for fulfilling their self-interest and provide health working conditions to their members. These practices develop
Feeling of equality and justice, which is helpful for economy and individual success. The last part of smith theory emphasised on emotion aspect to fulfill needs of people in an association. To grasp emotions, firstly, he focused on verbal, non-verbal and body language of people and then spectator tried to react on these expressions and interpreted it to judge it effectiveness. Sympathy is human naturally gained skill to response in any logical circumstances. For example, reactor and actor can replace each other to understand their emotions thus conflict can be resolved, and strong relations can be developed. He elucidated that people must show respect and careful attitude to develop better mutual understanding and harmonious relations in organisation through their moral values.
To conclude, appropriate coordination between self interest and morality is possible to achieve by behaving every stakeholder equally in organisation thus individual as well as enterprise goals can be satisfied easily. Smith emphasised that if morality is applied to business sector, it will emerge as profitable approach for commercial sector as well as for beneficial for social and stakeholder’s development.