Utilitarianism is used frequently when business leaders make critical decisions about things like expansion, store closings, hiring, and layoffs. Bentham’s perspectives on utilitarianism suggest that the consequences of an action should bring happiness not only to an individual but also the community around him or her (121-123). Mack, Peter. He described utility as the sum of all pleasures an action brings minus all the suffering that it brings. People who ascribe to the classical utilitarians’ school of thought consider actions right if it maximizes the overall wellbeing of society and wrong if it does not maximize the overall wellness of the society. Utilitarianism (Consequence-based Ethics) 2 years ago • Ethical Theories and Frameworks • 0 One of the most influential ethical frameworks , utilitarianism is focused on consequences and results; the sole basis of morality is determined by its usefulness or utility . Utilitarianism is an ethical theory that suggests that the best actions are those that maximize utility. As such, we share certain common conditions […] The Common Good Approach regards all individuals as part of a larger community. get custom paper. An example of this is an employee who resorted to stealing as a way of getting even to his or her supervisor who has unjustly treated him or her. However, giving a dry biscuit to a man who is dying of thirst will increase his pain. We all know that business class passengers pay a premium price to get all the luxuries of that class that the airline offers. Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. The utilitarian approach, also called utilitarianism, is essentially a moral principle that asserts that morally correct actions are those that provide the greatest volume of benefits over harms for the majority of people. The classic form of results-based ethics is called utilitarianism. The application of this theory can either be positive or negative. Utility measures the benefits and disadvantages (drawbacks) of consuming a product or service. Doing what is right is obeying your duties and the rule that guide a business. In contrast to Utilitarianism, deontological theories identify commands and prohibitions that are determined as binding without regard to consequences. “Consequentialism, constraints and the good-relative-to: A reply to Mark Schroeder.” Journal of Ethics & Social Philosophy, 3(1), 1-8, 2008. Philosophers say that utilitarianism is a version of consequentialism. Utilitarianism is an ethical philosophy that an action is right if it promotes happiness for the majority of people. The theory of utilitarianism can be applied in business in many ways. Economists use utility to measure pleasure or happiness and how it relates to the decisions we make. 2.2 Utilitarian Ethics Utilitarian ethics is a normative ethical system that is primarily concerned with the consequences of ethical decisions; therefore it can be described as a teleological theory or consequentialist theory, which are essentially the same thing, both having a notion that the consequence of the act is the most important determinant of the act being moral or not. For example, the airline industry offers first class, business class and economy class seats on many of their airplanes. Back to the concepts of pain and suffering; the ethical position of utilitarianism is that human beings should be happier and have less suffering. Therefore, an action is considered good if it brings joy to the most significant number of people in society and vice versa. ... Kantian Approach to Business Ethics just from $13,9 / page. Utilitarianism and Business Ethics. Utilitarianism in the workplace focuses on ethics, democracy, rights and responsibilities within the business … This approach focuses on using ethical actions or morally right action that will promote the good value among a society. Utilitarianism (pronounced yoo-TILL-ih-TARE-ee-en-ism) is one of the main schools of thought in modern ethics (also known as moral philosophy). 14th Jul 2017 Philosophy Reference this Disclaimer: This work has been submitted by a university student. A Defense of a utilitarian approach to business ethics, written for Business Ethics: A Philosophical Approach Edited by Werhane and Donaldson. The main idea of utilitarian ethics is: secure the greatest good for the greatest numb… This concept is referred to as effective altruism whose supporters claim to want to do the most good they can do. This measure directly influences demand, which subsequently determines the price of things. Kitchener, ON: Batoche Books, 2000. When debriefing an ethical dilemma, the Common Good Approach can be useful when the issue involves, or should involve, the overall picture or environment. Utilitarianism, in normative ethics, a tradition stemming from the late 18th- and 19th-century English philosophers and economists Jeremy Bentham and John Stuart Mill according to which an action is right if it tends to promote happiness and wrong if … It strives to achieve the greatest good for the greatest number while creating the least amount of harm or preventing the greatest amount of suffering. The action of saving him will result in great unhappiness. Bentham, Jeremy. An introduction to the principles of morals and legislation. Therefore, actions are morally wrong if they lead to unhappiness. 2391 words (10 pages) Essay. However, utilitarianism, unlike other forms of consequentialism, takes into account the interests of everybody equally. The Utilitarian Approach •Utilitarianism holds that the morally right course of action in any situation is the one that produces the greatest balance of benefits over harms for everyone affected •The focus is on the consequence of the action: the greatest good for the greatest number •If … In this regard, the business will be positively applying utilitarianism when they can balance the principles of pleasure and pain and how they can influence their performance. Ethical theories depend on what is right and wrong and the end result of the action. : Ethics provides a set of standards for behavior that helps us decide how we … Ethical behaviour of people doing business is very important in our society. This aspect of utilitarianism suggests that actions are good for the greatest wellbeing of the society or many people. "Rule" Utilitarian Ethics An example of rule utilitarianism in business is tiered pricing for a product or service for different types of customers. 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