Ethical Theories Of Business

Running head: APPLYING ETHICAL THEORIES TO BUSINESS
Applying Ethical Theories to Business
Name of the Student:
Name of the University:
Author Note:
Table of Contents

1APPLYING ETHICAL THEORIES TO BUSINESS
Introduction................................................................................................................ 2
The UK housing market and the role of the Government........................................2
Ways to deal with the issue introduced above........................................................2
UK Housing Market..................................................................................................... 3
Detailed overview of the housing market in UK......................................................3
Role of government in the way the housing market has developed and the
corresponding criticisms......................................................................................... 4
Perspective of those who want more intervention and those who do not want
government intervention......................................................................................... 6
The Role of Government............................................................................................. 7
Theories and Concepts............................................................................................ 7
CSR and housing in UK: Assessment of the role of the government.......................8
‘The Housing Market cannot be left to the market’: Critical assessment of this
statement................................................................................................................... 9
Conclusion.................................................................................................................. 9
References
..............................................................................................................................
.................................11

2APPLYING ETHICAL THEORIES TO BUSINESS
Introduction
The UK housing market and the role of the Government
It is found that the house market in Britain is in a dismayed state. The rents of housing in
Britain are quite high and are unaffordable for large majority of people. It has been found that as
of 2017, the rates of housing in UK has been at an average rate of £226,071 which in turn
indicates an increase in the rates of housing is occurring at a rate of 5.1% on an annual basis
(Ons.gov.uk. 2018). There has been a disjuncture between the supply and demand of the
government’s assistance to purchase new homes. Moreover, various affordable home ownership
schemes are being formulated and implemented by the government of UK which is causing in
the increase in the demand for housing. These schemes include shared ownership, low interest
loans and Help to Buy ISA wherein the government is helping to increase the amount of savings
by 25% (GOV.UK. 2018). In London, people who are positioned in the lowest rung of the
economy have been worst hit.
Ways to deal with the issue introduced above
The report critically examines the condition of housing market in UK and the changing
trend of the market economy that has its impact on housing. The next section of the report
examines the role of the government in alleviating the conditions of its citizens and the
corresponding criticisms that emerged in that context. This is followed by an invigorating
discussion on the different perspectives of people who want more government intervention and
those who are opposed to the idea of government intervention. This discussion will be done
through the framework of the Libertarian perspective, argument pertaining to the free market,

3APPLYING ETHICAL THEORIES TO BUSINESS
corporate social responsibility and finally an examination of the statement that the housing
market cannot be left to the market in the backdrop of United Kingdom.
UK Housing Market
Detailed overview of the housing market in UK
Since the 1900, the housing system in the United Kingdom has experienced a tectonic
shift and there has been many repercussions regarding the same on other markets and the
economy as a whole. The earlier model of housing system was characterized by the monopoly of
the landlords (Collinson 2018). However, such monopolized system faced resistance from the
new wave of houses that was constructed under the public housing structure and also the various
schemes that propelled the increase in demand of the housing market. The local authorities
provided such kinds of housing prior to the epoch of home ownership in the interwar period and
the period postwar. Over the past few decades, there has been a transformation in the tenure
patterns in UK. Even though the demand for housing has increased, the ever increasing prices
coupled with stagnating prices of home ownership has led to an increase in the amount of renting
in the UK. This is true especially of the young generation residing in UK. The house renting
scenario is such that it is being reported that about a total of 5 million households are currently
availing privately rented housing options (21%) and this number is expected to increase to 5.79
million making the percentage go up to 24% in the coming five years (Kollewe 2018). Concerted
efforts were made for the resurgence of the housing sector through private ownership of houses
but there was not much change. It was only during the mid-1990s that the private sector
witnessed a much needed revival (Gov.uk. 2018). However, the amount of investment in the real
estate market by the real estate companies has increased by 66% as of the current year. The
expansion of housing demand was also propelled by pension funds brought into existence by the