ABSTRACT
This chapter utilizes the responsible decision making framework to discuss some fundamental problems of economics and public policy. It examines the John Rawls' famous principle of justice on the basis of responsible choices made by people knowing perfectly their positions in society. The chapter discusses the so-called Paradox of a Paretian Liberal. It shows that the information provided by individual preferences might not be sufficient to formulate accurate public policies. The chapter also examines the Prisoners' Dilemma game, and demonstrates that unlike self-interested actions, responsible agency can lead to optimal outcomes in prisoners' dilemma situations. It explains the basic idea of cost-benefit analysis in the multidimensional decision space that includes environmental, monetary, and social values. The chapter explores the ethical and social acceptability of profit making, and investigates the problem of establishing justice among nature, society, and future generations. In modern business ethics, the issue is formulated in terms of the social and ethical performance of business.
