But indeed this gap is present in all forms of business big and small because, let’s face it, most business models are based on the capitalist system. Business wants to get the most production for the least amount of cost to increase the profit margin. Most would agree that this is the way America works. This model is great in theory and in practice has obviously worked. But where does it put the workers?
Bailes sees facilitation payments in multinational corporations (MNC’S) as a form of corruption. He argues that although there are some claims that there is a distinction between facilitation payments and bribes, this should not be so because facilitation payments can have damaging consequences to the economy. On the other hand, Argandona views facilitation payments more from the point of view of the MNC’S that the payments. He views facilitation payments as a form of “petty” transgressions because what the payer wants to be done is not illegal, but something that exceeds their authority. Corruption still continues to thrive especially in multinational corporations under the guise of facilitation payments (Bailes 2006: 297).
Some people believe that there should be no rich people in the world as long as there is poverty in the world. Christians believe in helping those who are less fortunate, because of religious teachings such as "If anyone has material possessions and sees his brother in need, how can the love of God be in him?" They believe that everyone is equal and that we should help each other and share the wealth as it belongs to God. Most Christians would agree with the statement as the teachings of Jesus say that we should help each other. Jesus said: "The man with two tunics should share with him that has none, and the one who has food must do the same."
Coursework (a) (i) Outline Christian teaching on wealth and poverty. Christians do not think money is a bad thing. However, they believe the way money is earned and used is the issue. Most Christians believe that wealth is a gift from God to benefit others. Christians believe that all money belongs to God and he gives them stewardship of his money to use wisely.
One can argue that eventually, even elites would have to face the results of their bad decisions, but one often forgets that elites are shielded by their wealth or power even then, and thus suffer nominally as compared to the rest of the society. Their status, thus, grants them the power to be less accountable, which in turn allows them to make decisions that are quite detrimental for the public. These decisions might not be intentional, but the complete insurance that they possess against personal harm allows for more reckless action. From a Confucian and East Asian perspective, the fault with any society is solely attributed to the elite, never to the general public. The belief is that the elite can engage in negative opportunism because of their status and power.
Regarding Global Infrastructure Anti-Corruption Centre, corruption most of the times happen because some people are willing to use illegal ways to increase individual or corporate profit. For being a corrupt person, the actions have to be done in purpose. Furthermore, even living circumstances which can prevent people from being involved in such activities they are not discouraged from these, and continue with their illicit purposes. According to the last studies in 2010 by the anti-corruption agency (Transparency International) 178 countries were studied, 57 had serious corruption problems and 73 of them had “rampant” corruption (Lash & Batavia 2013, p. 1). Moreover, corruption has several impacting events that can slower the economy growth of a country, decrease the investment and make it difficult for other countries to invest in the countries where corruption is occurring.
The distribution of income and wealth is a crucial factor in determining the level of inequality in an economy. Personal income is the flow of funds received in a given period of time by persons or households, and personal wealth refers to the value of net assets of a person or household, it represents the value of items owned less any debts owed by the person or household. Income and wealth are the economic resources that households use to support their consumption of goods and services. There are many benefits of inequality, however many costs as well. Income and Wealth inequality is measured by the Lorenz curve, which graphs the cumulative percentage of income or wealth against the cumulative percentage of households or individuals, the more the Lorenz curve deviates from the diagonal, the greater is the income inequality.
The leaders that support corruption spend the countries’ wealth in a free and lavish lifestyle. These countries usually have strong currencies, which mean that the money isn’t worth what it seems. The countries impede other exports because resource extraction comes with no establishment of jobs, an increase in unemployment; and owned resources are priced unfairly. Aid is needed from international banks, and these banks come assist the poor countries when commodity prices are great and then leave when the countries are their lowest rankings. Moreover, these resource-rich countries usually make uneducated decisions including becoming involved in conspiracies.
The Social Solutions of Wealth and Poverty The evidence of this economic inequality is ubiquitously. Income and wealth is an essential part in supporting basic physical and mental health, however, it is distributed unequally throughout the globe creating wealth and poverty stricken social classes. There are solutions available in diminishing and preventing the wealth and poverty inequality. The vast amounts of prosperity can be distributed equally between the different social classes and poverty can be reduced, if not complete eradicated. Problem-solving with different political ideologies can prevent an increase in the lack of fiscal means.
This paper will examine the disparities that exists in wealth distribution between the rich and the poor. Taking into account the fact that most of the wealth in this world is owned only by a small percentage of the population, we will examine the potential application of wealth redistribution to bridge the gap between the wealthy and the poor and look at the implication both economically and socially. It is a fact that the rich feel they are entitled to keep what they have worked for and would therefore the idea of being taxed more with be met with resilience. To help determine the applicability of wealth redistribution we will apply ethical theories to arrive at meaningful conclusions without violation of human right and demoralization of investors. Wealth inequality is the unequal distribution in the net worth of people in a country or the world at large.