it means how business activity (production) can be limited/ controlled by ethical issues (moral issues)?
for example,
if a toy company wants to sell a new brand of toy, do you think its ethical (moral) to advertise the toy when parents can barely afford them?
it could decrease the sales of the business if the manager decided it wasnt a 'nice thing to do' to advertise. same goes in industries, if manager decides to improve the working conditions even if he is not needed to do so by law. he is acting ethically and this can increase costs of the business and reduce chances of (constraint) business activity!
i hope that makes sense...you just have to explain it in ur answer, looking at both good and bad sides of the arguement, give an example and provide final conclusion