MGMT 1040 Lecture Notes - Egotism, European Debt Crisis, Liquidity Trap
3 Dec 2012
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Document Summary
Determine the economic outcomes (pareto optimality, in a position where we cannot make anyone else better off without making someone worse off) . Evaluate the ethical duties (moral principals, how stakeholders are affected) When doing the 7 steps, there are 2 different paths. Path 1 is from moral problem to moral solution. Path 2 is facts+issues leading to a certain issue (moral problem, take away land from natives). When evaluating on the ethical issue, we define the impacts of the issue on all stakeholders (harms, benefits and rights) involved. Identify relevant stakeholders (the problem itself will tell us who the stakeholders are). Subjective moral standards means that the standards are relevant to beliefs of all stakeholders. Externality: a third party is affected by a mutual decision made by a party (group) vesting in an interest. Parato improvement (an action done in an economy that harms no one and helps at least one person.
