Ethical Considerations In Business Decision-Making: Optimization, Multiple Criteria, And Fairness

This paper examines the role of optimization in business decision-making. Business education at both undergraduate and graduate levels offers various courses on decision-making and analysis, emphasizing the importance of delivering optimal decisions based on specific objectives. Decision optimization is a mathematical approach that helps businesses make effective choices by optimizing input variables. It relies on data and models as inputs, applies mathematical algorithms for analysis, and generates outputs that guide businesses in improving their decision-making processes. We first outline the algorithmic approach to decision-making within Operations Research (OR) and Game Theory. While quantitative methods and algorithms are widely used to optimize business decisions, it is equally crucial to consider their ethical implications, including fairness and broader societal impact. Following a discussion of algorithmic methods, we highlight key philosophical and ethical considerations. Additionally, we offer recommendations for integrating ethical perspectives into decision-making frameworks, which can ultimately shape optimal decisions. This is particularly relevant in educational settings where decision-making and analysis are taught. Two real business cases are described considering profit versus safety and two cases considering profit and health issues.