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.
