ABSTRACT
This chapter helps the reader to understand on the basis of the transformation of the relationship between the public and private realms, why the domestic and transnational expansion of the private sector has resulted in a significant increase in ethical problems in the business environment and market operations. It explores, from a theoretical perspective, the solutions derived by economic actors to maintain and develop businesses within a highly deregulated global market and a knowledge economy in compliance with ethical rules. The chapter examines the theoretical basis of business ethics and assesses the implications. It discusses two economic approaches to business ethics: a traditional economic perspective and an alternative economic perspective. The chapter demonstrates that the theoretical approaches can highlight the relevancy — but also shortcomings — of important business practices: while compliance approaches stress the relevance of clear rules to avoid certain "bad practices," integrity approaches emphasize creativity, ethical learning processes, and innovations as organizational capabilities.
