Textbook Notes (369,067)
Canada (162,366)
York University (12,903)
Management (143)
MGMT 1040 (37)
Chapter

2.docx

2 Pages
117 Views

Department
Management
Course Code
MGMT 1040
Professor
William(bill) Woof

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Description
The Ethics of Management  Chapter 2 – Moral Analysis and Economic Outcomes  “Economic Outcomes” is the first evaluative means in a moral analysis. Economic outcomes do not refer just to the net balance of revenues over costs for the company. Economic outcomes in economic theory refer to the net balance of benefits over harms for the full society as a result of a certain decision or action. Most non-economists, and some economists appear to focus entirely on profit maximization. Economic theory, addresses ethical and economic percepts. Economic Theory in its complete form is more a normative theory of society than a descriptive theory of the firm. Profit maximization is a part of that theory, certainly not the central focus. Economic equilibrium is the effort by business managers try to create marginal increases in revenues against marginal increases in costs, resulting in maximum profit. Concept: Pareto Optimality forms the moral basis of economic theory. Pareto Optimality refers to a condition in which the scarce resources of society are being used so efficiently by the producing firms, and the goods and services are being distributed so effectively by the competitive markets, that it would be impossible to make any single person better off without harming some other person. “It would be impossible to make any single person better off without making some other person worse off”. The ethical substance of economic theory summarized in Pareto Optimality: Produce the maximum economic benefits for society, recognizing the full personal and social costs of that production, and rely on fair markets for the equitable distribution of those benefits. With this concept, the theory becomes a means of achieving the social goal: maximum benefits of most wanted goods and services produced at minimum costs of least wanted resources. There is a view: - Ethical duties are not relevant in business, beyond the normal standards of not to lie, cheat or steal - Necessary to maintain price-competitive markets - Satisfy customers needs - Profit maximization - Following legal requirements - “One only social responsibility of business is to use resources and engage
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit