Selected reforms in business- pandemic studies to accord with the model of science- economy-society moral inclusiveness


In this chapter we ask the following selected questions and answer them in the contr asting models of business decision-making and asset valuation: Can the utilitarian model of expected utility function have an endogenous ethical link with the pandemic human situation? Can the welfare function in its orientation of expected utility function endow an endogenous continuity and sustainability impact on the moral outlook of decision-making as it would thereby affect the pandemic situation? In contradistinction to these questions there is the unique and universal epistemic alternative to the evaluation of the wellbeing objective criterion in the light of moral inclusiveness of science-economy-society multidisciplinary ensemble. The contradictory lesson is learnt in specific examples of business studies in terms of their traditional premise of economic rationality and the rationalism episteme. In such a priori versus a posteriori epistemic context there exists the dissociation between the a priori foundation of pure and imperative reason and the a posteriori reasoning of antinomy fr om the a priori moral episteme. Such a dissociative multidisciplinary understanding of moral inclusiveness is the primal cause of methodological independence between the moral and material domains of human experience. We have explained in this work that such methodological independence is the cause of moral exclusion and methodological individualism in pandemic episodes.

Possible revision of business studies in the framework of the model of moral inclusiveness [1]

The continuously differentiable function, which is the unfailing property of the wellbeing function in endogenous ethical values (e) inducing the knowledge variables (0) like ‘6(e)’ has no presence in Taylor’s Theorem applied to the utility function as follows:

The continuously differentiable function of the variable ‘x,’ ‘f(x)’ is expandable in the neighbourhood of‘c’ in the following knowledge-induced form. It shows that at best in the mathematical context, the extendable continuously differentiable property, hence moral sustainability, is applicable in the dynamic knowledge-induced neighbourhood of {c(0(s))}.

By replacing f(.) with the neoclassical economic and finance version (business decision-making) of utility function in xisk (Var(x)) and return (cashflows, x) the expression (7.1) does not maintain its property of continuous differentiability in terms of {0(e)}. Hence the property of moral sustainability as found in the IIE-leaming version of the wellbeing function does not exist in the neoclassical conception of classroom and textbook orientation. Thereby, neoclassical economic and finance expression of utility in risk and return does not extend to {0(e)} . The generalized theoretical form of expression (7.1) cannot therefore apply to the neoclassical form of utility function in risk and return. This neoclassical form always taught and pronounced in books and classroom business studies thereby dispels moral inclusiveness of risk and return. This is a permanent failure of existing business studies in all its pedagogical delivery originating from the primal episteme of unity of knowledge between the knowledge-induced variables.

The failure of neoclassical utility function in policy-theoretic aspects of decision-making with moral inclusiveness replaces the relationship between risk and return. This happens in substantive different ways in the case of the IIE-leaming theory of wellbeing in unity of knowledge and its inter-variable induction, consequent to 0(e)|. The attitudinal marginalist property of utility tradeoff between risk and return is now replaced by complementary propexty between risk and return. This results front institutional organization of increasing risk-sharing. This in respect of the increasing number of shareholders with unit shareholding (s1i(0(e))) and increasing output (returns, x(0(e))) by focusing on the life-sustaining production and consumption activities, all together reduce the unit risk (u(0(e)) = Var(x(0(£)))/ s1i(0(e))*x(0(£))). This in turn increases the expected re tutus. While the total risk may increase, unit risk declines. That is by circular causation between the endogenously interrelated variables of the wellbeing objective criterion dealt with throughout this book, the resulting following inter-causal relationship between risk and return in the framework of unity of knowledge applies to the problem of pandemic episode:

2 Utilitarian welfare function-based decision-making:2 moral exclusion in business-pandemic studies and its alternative of moral inclusiveness study

We define the welfare function, W(UbU2,. . . Un), in terms of the aggregation of several utility functions, {U„ i= 1,2, . . ,,n} in any of the following forms:

wherein the presence of knowledge variables {0(e)} as endogenous embedding of the other variables and the additive coefficients, {aj remains dysfunctional. Moral and ethical effects on the utility functions and thereby the welfare function remain exogenous in nature. Thereby, all the properties of inter-variable methodological independence and the agential property of methodological individualism prevail between self, markets, and institutions. All the properties of utility maximization, thereby welfare maximization, discussed in respect of utilitarianism and premised in economic rationality and the episteme of rationalism as methodological dissociation between a priori reason and a posteriori reason prevail.

In the global pandemic sense, expression (7.3) can be implied to represent region-wide aggregate form of the welfare function in terms of the individual utilities of members of the global community. In the absence of moral inclusiveness in the utilitarian framework of science-economy-society having no endogenous effect of {0(e)} on the multidisciplinary ensemble of variables, business pandemic studies with moral consciousness carmot be pursued. In this case all the properties of dissociative nature characterizing science, economy, and society cause moral exclusion in the study of business pandemic study. The specific case in this regard is the utilization of the dissociative multidisciplinary method that is made to address utilitarian welfare maximization in respect of the usual treatment of risk and return behaviour of business decision-making in choices of investments, and in capitalization of cash-flows on a global community scale.

Such a dissociative nature of regional welfare of pandemic resolution can be found in the realpolitik of vaccine manufacture and competition for trade access between so many countries. Some of these competing global members comprise the USA, Russia, China, India. Fidler writes on a similar problem of international sharing of knowledge on COVID-19 treatment and cine (Fidler, 2020)3. The consequences of such lack of global sharing causing the vast pandemic adverse effects in science-economy-society moral inclusiveness result in notoriously deadweight wellbeing losses.

The identity of expression (7.4) to (7.3) is noted by converting into log- linear form denoted by lower case symbols as

The critical study of expression (7.5) regarding the modelling of moral inclusiveness of business decision-making and valuation of assets is identical with the section 1 given earlier. The continuation of this kind of business study remains incapable of policy-theoretic application to business-pandemic case study. This prosaic study is thereby changed into an altered analytic of moral inclusiveness of risk and return study by the complementary study in the multidisciplinary field induced by the episteme of unity of knowledge. Such a universality and uniqueness of the business-pandemic study of moral inclusiveness by the implications of expression (7.2) opens up a broad horizon in the fields of business ethics, epistemic conceptualization as by the ontology of unity of knowledge, and phenomenological application of sustainability in the treatment and resolution of pandemic problems for wellbeing.

3 Matrix portfolio analysis of business-pandemic study and its alternative analytic model of moral inclusiveness

In the light of the business-pandemic study in moral inclusiveness of multidimensional elements of the continuous knowledge, space, and time passage of investments in the securities of good things of life over time, zs(0) = (0S, xs(0s), t(0s)) over diverse securities (s=l,2,. .,n) in the portfolio of securities, P(0,X(0),t(0)). We write, P(0, x(0),t(0)) = {s(0)}s=12 n. Each security, and thereby aggregate, the portfolio as a whole, is evaluated by means of its knowledge-induced cash-flows and decision-making process in the framework of IIE-leaming processes. The valuation of securities in the portfolio have their respective wellbeing objective criterion (w5(0s)) and for the portfolio as a whole the wellbeing function is W(w5(65)). Valuation of investments, cash-flows, and decision-making along the respective IIE-processes integr ate in terms of the knowledge-induced {zs(0s)}s=12j In the case of business-pandemic studies the elements mentioned here denote those that are conducive to resolve pandemic problems along with promoting human incapability contra debilitating capability as explained earlier.

Table 7.1 displays the horizontal (intra-system) and vertical (inter-systems) securities to portfolio IIE-leaming processes. The table explains this process. The following symbols denote

rs(0s): real return from investments and cash-flows of life-fulfilling things of life, such as restructuring of economic structures towards human capability and business-pandemic study complementing the multidisciplinary parts in the science-economy-society model of moral inclusiveness.

Ps(rs(0)): probability for realizing ‘rs(0)’ across different socio-scien- tific states of the specific seciuities, s = 1,2,.., ty.

Thereby, the portfolio real rate of return ‘r(0)’ is calculated by

Ast denote cash-flows net of cash-flows in security ‘s’ over time ‘t’ arising from business-pandemic related securitization of the portfolio (0S). Table 7.1 implies that such net cash-flows and the expected real rates of return are continuous so as to establish sustainability of the IIE-leaming processes in the case of business-pandemic study. Thereby, the discursive base of decision-making between self, markets, and institutions as of science- economy-society in moral exclusiveness is a simultaneously continuous

Table 7.1 Business-pandemic formulation of multivariate asset valuation in respect of moral inclusiveness

s=n; time







n-Tenninal Valuation wlt(zn(6n)). at each t=l,2,. ..ii;


}Poitfolio, V(ws(zs(6s))

s=l; time








1-Tenninal Valuation wlt(zl(6i)), at each t=l,2,. ,,ni

Table 7.2 Construction of business-pandemic portfolio wellbeing by securitization in the good choices of normalization away from pandemic mutation



  • 1
  • 2


Portfolio wellbeing in terms of securitytime specific log-linear wellbeing functions of pandemic resolution W(6)

Product version of the portfolio wellbeing function in terms of security-time

activity intra- and inter-systems of securities to contribute to business-pandemic characteristic study of valuation by means valuation of the securities and portfolio wellbeing functions.

Bold symbols denote multivariate vectors at each time period of valuation of wellbeing functions. The time period specific portfolio-wide valuations of securities can be represented in the following table. The poitfolio-wide valuations of securities are expressed by the product function of security valuations by time periods to display the IIE-leaming non-linear portfolio wellbeing function as shown next. The coefficients (ast(0)) so existing for securities by specific time periods signify the effectiveness of moral inclusiveness in the pandemic resolution. Here is the formalism of portfolio wellbeing in terms of the weighted log-linear security wellbeing functions (wst(0)), s = 1, 2,. ., n; t = 1, 2,..., n,.

Table (7.2) explains the security-diversification by IIE-leaming processes of a business-pandemic portfolio for pandemic normalization out of mutation in respect of the episteme of unity of knowledge and its induced good choices by means of ‘0st’ resulting in the multivariate choices of ‘z(0st).’

  • [1] Utilitarian business decision-making: moral exclusionof business pandemic studies and its alternative of moralinclusiveness study Following is the explanation of the nature of moral exclusion of pandemicepisode in the irtilitarian decision-making approach:
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