To read this content please select one of the options below:

In quest of profits: legal and ethical implications facing Microsoft

Mona R. El Shazly (Department of Business and Economics, Columbia College, Columbia, South Carolina, USA)
Ryan J. Butts (Department of Economics, College of Charleston, South Carolina, USA)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 1 May 2002

3048

Abstract

Despite its wide acceptance in economics, the fundamental tenet of the theory of the firm is not without its critics. Questions related to the nature and role of the firm, its objectives, responsibilities and behavior have fueled much of the recent debate. Today, firms are being evaluated and scrutinized not merely on their economic performance, but also by the ethical standards they uphold. The case brought against Microsoft is an example of the tangled web that characterizes the economic, legal and ethical dimensions of business operations. This paper shows that as an economic entity, Microsoft employed strategies that were consistent with its long‐run objective of profit maximization. In so doing, however, Microsoft violated anti‐trust laws and was charged with illegal conduct. Despite the court ruling, economic and legal justifications continue to be a subject of debate amongst the different entities involved in this case. More so when ethical implications are considered, consensus becomes even harder to reach due to the subjective nature of the judgement.

Keywords

Citation

El Shazly, M.R. and Butts, R.J. (2002), "In quest of profits: legal and ethical implications facing Microsoft", International Journal of Social Economics, Vol. 29 No. 5, pp. 346-355. https://doi.org/10.1108/03068290210423497

Publisher

:

MCB UP Ltd

Copyright © 2002, MCB UP Limited

Related articles