Investigation of Ethical Issues in Management from the Perspective of Microeconomics

Managers’ decisions and behaviors lead to a contradiction in economic and social performance of the organization under their management’s control. Creating a balance between economic and social performance of managers is an undeniable necessity. Due to increased competition in global trade, economic activities in favor of social activities cannot always be ignored; on the other hand, it cannot always be decided in favor of economic activities. The presence of contradictions in economic and social performance of managers causes serious moral issues that sometimes lead to destroy the manager as a decision maker, and the organization under his control. Microeconomic theory has a strict moral content to find the appropriate or moral balance between economic and social performance of managers and organizations. This paper investigates moral claims of microeconomic theory on social welfare and resolving ethical issues in managing the organizations along with theoretical criticisms to this theory by enumerating the characteristics of ethical issues in the management of organizations.

Moral issues, economic performance, social performance, microeconomics