Utilitarianism theory in business ethics. Justice Theory: Business Ethics, Utilitarianism, Rights, Caring, and Virtue 2022-12-18
Utilitarianism theory in business ethics Rating:
Utilitarianism is a ethical theory that holds that the best action is the one that maximizes utility, or happiness, for the greatest number of people. In the context of business ethics, utilitarianism suggests that businesses should make decisions that maximize the overall happiness or well-being of all stakeholders, including employees, customers, shareholders, and the larger community.
One way that businesses might apply utilitarianism is by considering the potential consequences of their actions on all stakeholders. For example, a company might decide to invest in more environmentally friendly practices, not just because it is the right thing to do, but because it will also lead to long-term cost savings and improved public relations, which will benefit shareholders and customers.
Another way that utilitarianism might be applied in business is through a focus on creating the greatest good for the greatest number of people. This might involve prioritizing the needs and well-being of the most vulnerable stakeholders, such as low-income customers or marginalized communities. For example, a company might decide to donate a portion of its profits to a charitable organization that helps people in need, even if it does not directly benefit the company in the short-term.
Utilitarianism can also be used to justify certain business practices that might be viewed as controversial or unethical. For example, a company might decide to lay off a large number of employees in order to cut costs and remain competitive, even if it causes hardship for those employees. From a utilitarian perspective, this decision might be justified if it leads to the long-term survival and success of the company, which ultimately benefits all stakeholders, including the remaining employees.
However, utilitarianism is not without its criticisms. Some argue that it can be difficult to quantify and compare the utility or happiness of different individuals or groups, and that it might lead to negative consequences for some stakeholders. Additionally, utilitarianism does not take into account issues of fairness or justice, and might justify actions that are unethical or discriminatory if they lead to the greatest overall utility.
Overall, utilitarianism offers a useful framework for considering the ethical implications of business decisions, but it is important for businesses to also consider other ethical theories and principles, such as respect for autonomy, fairness, and justice.
Utilitarianism: Strengths & Weaknesses
New York : Springer, 2004, 17. Advertising decisions are one area of business marketing that reflects business practices versus ethical considerations. Sometimes, Journalists are asked by NOW to offer cash and other bonuses such as cars as well as housing property to informants. Although little equipped with oxygen tanks and masks, the tanks possessed little oxygen that limited the required air supply. Markedly, this theory applies to the two decisions made by Katrin. Business ethics: Managing corporate citizenship and sustainability in the age of globalization.
However, it is important to consider the logical reasoning that resulted in the formation of the care theory that most probably outdoes all other business ethics theories. A hard-core utilitarian would say that outcomes are all that matter. It is for them alone to point out what we ought to do, as well as to determine what we shall do. Utilitarianism is a secular process which can incorporate religious elements if that is what makes you happy. According to this theory, an action is either good or bad depending on the pain or pleasure and happiness it brings to the majority.
Advertisement as a business promotion strategy aims to persuade, woo and convince consumers to purchase the advertised product Jones and Parker 2005, p 165. As a result of living in fear of getting terminated from the 'best' newspaper company, Journalists are often stressful and resort to drinking in order to curb with the pressure. Utilitarianism was developed into an ethical theory by two philosophers named Jeremy Bentham and John Stuart Mill. There are two types of utilitarianism: Act utilitarianism and rule utilitarianism. This appears practical and easy to use in any situation; however, it has its issues.
Their employees often have to work throughout the week and sometimes late into the evening. Relating this to the case of George, we see that George needs to assess the situation from a neutral perspective. Was it because of the moving sights of starving victims or purely on principle? If an action conforms to a moral rule then the act is moral. Journal of Unification Studies, 12 1 , 41-56. Understanding Utilitarianism Utilitarianism is a tradition of ethical philosophy that is associated with Jeremy Bentham 1747-1832 and "The greatest good for the greatest number" is a maxim of utilitarianism.
Utilitarianism: What It Is, Founders, and Main Principles
You get to pursue what has meaning in your life. At work, utilitarianism is displayed by working to make sure the workplace is a positive environment for your co-workers to be in, and then make it so for yourself. Positive rights are obligations put open people to provide goods and services to other people Innings, 2008. The utilitarian perspective is perhaps best understood when examined in contrast to rights-based perspectives. Even though nobody is sure the medicine will work or not and the patient is desperate and could die, the hospital may deny the medicine since it has not been proven to work. The emphasis on reason subjects all actions to rational scrutiny before they are acted out Machan and Chesher 2002, p 41. The consequences of an action, however, do provide us with a clear criterion for what counts as a morally good action.
Utilitarian Views on Business Ethics The utilitarian theory
Positive consequences should prevail over the negative. This aspect of utilitarianism suggests that actions are good for the greatest wellbeing of the society or many people. Explosive gas methane and carbon monoxide elongated the rescue time. This has many advantages for decisions made in business. Morally virtuous leaders are competent as they act or undertake their jobs in the right way. A lot: that the way to its boardroom is via the stomachs of its management Janes 2009, p 134. To begin, consider the case of George.
Following ethical dilemmas and ethical lapses in business practices that became eminent in the 1970s, the concept of business ethics emerged to expound business ethical principles Arnold et al. Virtues form a fundamental part of moral philosophy and by failing to observe the importance of protecting employees through safety measures, the Massey Company and its management was not virtuous in their leadership. And it is a failing of Utilitarianism that it does not recognize the moral value of labeling these as morally bad actions. A business applying this element should engage in activities that increase its profits while at the same time serve the best interests of its customers, the community, and the government. But there's a problem: About one in every five hundred people who take the drug will have terrible side effects that can cause serious pain and sometimes even death. There are two main principles in his theory. This will tarnish its image and put it in conflict with the company.
First of all, it introduces the idea of responsibility where people can be judged from their actions depending on whether they made good decisions for a company for example. While she is supportive of George, his difficulty finding a job puts a serious strain on their relationship. This is because by doing so, he would bring happiness and pleasure to the majority-the pregnant women and the unborn child. Massey and its Upper Big Branch consistently remained insensitive to environmental precautions and mismanaged the coal slurry that contained toxic impurities. In considering everyone equally, Utilitarianism devalues the importance of personal relationships.
List of the Advantages of Utilitarianism 1. Despite the fact that he is using pirated software, his clients receive cheap services which reduces their operating expenses. Perhaps the executive comes from a culture where dishing out goodies in this manner is the standard way of saying thank you, and therefore he does not see any harm in his act. According to Mill, you might act in your own self-interest, but you also might act for the benefit of others. The difficulty of applying utilitarianism arises when it is not clear what the consequences of an action are, such as with pollution. Besides that, the rights theory also insists that human rights should be independent from the influence of other factors. It is incompatible with business practices anywhere in the world.