Business Ethics in Microeconomics: A Teaching Application

Abstract

Today, under the leadership of the American Assembly of Collegiate Schools of Business, there is growing interest in integrating ethical decision making into the existing business school curriculum. This study presents one approach for doing this utilizing standard economic analysis of the firm. Drawing upon instrumentalism, business ethics is incorporated into the economic investment model. The theory of the firm is used to exp_and this model to managerial decision making. The aim is to demonstrate the relevance of microeconomics to this important social issue, and to reinforce students' understanding of the theory of the firm. (M13, 124, B20)