MGMT 1040 Chapter Notes -Pareto Efficiency, Allocative Efficiency, Bernard Madoff
18 Mar 2014
School
Department
Course
Professor
Document Summary
Chapter 1: the nature of moral problems of management (p. 1-23) Step 1: understand the different standards: the problem is that our moral standards of behaviors are subjective. You have to work through each of the next six stages . If you listed all harms and benefits , then clearly you have a moral problem: therefore a compromise that meets the test of economic benefits, legal requirements , and ethical duties is possible. Step 4: determine the economic outcomes: economic analysis refers to the net balance of benefits over costs for the full society, this concept is known as pareto optimality( allocative efficiency ) Legal requirements refer to the laws adopted by members of society to regulate the behaviors of members of society. If any of these duties are not obeyed, you must list them and say how they were not obeyed.
