For example, by selling quality and safe products, a business will be increasing its intrinsic value while meeting the needs of their customers at the same time. It is also the most common approach to moral reasoning used in business because of the way in which it accounts for costs and benefits. Utilitarianism holds that the most ethical choice is the one that will produce the greatest good for the greatest number. Utilitarianism has, Mack, Peter. Web. As such, we share certain common conditions […] All Rights Reserved. Specifically, decisions that we make as consumers. However, what about saving a suicide bomber from drowning, especially if he is about to kill dozens of people? Market Business News - The latest business news. The doctrine that actions are right if they are useful or for the benefit of a majority.”, “2. get custom paper. WHAT IS ETHICS? 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. Batman’s doctrine is ‘don’t kill,’ regardless of how bad a person is. Others, however, insist that agents should conform to rules that maximize utility. Whether actions lead to unhappiness or happiness depends on the circumstances. Batman refuses to kill the Joker, even though his death would result in much less pain for many people. However, a non-anthropocentric utilitarian approach to environmental ethics only broadens the set of morally relevant organisms to include, in addition to humans, elephants, cetaceans, great apes, and a handful of other sentient organisms. Economists use utility to measure pleasure or happiness and how it relates to the decisions we make. What is utilitarianism? 2391 words (10 pages) Essay. The utilitarian approach.Business can utilize utilatarian approach to ensuring outcome of various situations to help the maximum amount of stakeholders in the company. It is the only moral framework that can be used to justify military force or war. To begin with, business persons who wish to use this theory must first understand its four components. However, giving a dry biscuit to a man who is dying of thirst will increase his pain. The greatest happiness of the greatest number of people is the guiding principle of behavior. ... Business analysts, legislators, and scientists weigh daily the resulting benefits and harms of policies when deciding, for example, whether to invest resources in a certain public project, whether to approve a new drug, or whether to ban a certain pesticide. For example, the airline industry offers first class, business class and economy class seats on many of their airplanes. A Defense of a utilitarian approach to business ethics, written for Business Ethics: A Philosophical Approach Edited by Werhane and Donaldson. Suikkanen, Jussi. Bentham, Jeremy. The idea of applying utility to ethics has its roots in 18th century philosophy. Some of the moral philosophers associated with this theory include Jeremy Bentham, David Hume, Henry Sidgwick and many others. The theory associates wellbeing with happiness. Two of the most popular approaches to ethics in modern philosophy are utilitarianism and deontological ethics, both of which are normative theories. Therefore, an action is considered good if it brings joy to the most significant number of people in society and vice versa. When the Joker escapes from prison, which he always does, and kills again, won’t it be Batman’s fault? For instance, businesses that commit themselves to the principle of consequentialism may encourage their employees to act as they wish as long as the essential outcome will be to the benefit of the organization. Our moral belief about life changes over time. The third element that businesses need to understand as to how the principle of utility applies to their operations is individualism. Eggleston, Ben. The first element is consequentialism, which is the understanding that the wrongness or rightness of actions is entirely determined by their actions (Mack 64; Suikkanen 1). In economics, utility is the pleasure or satisfaction that people derive from consuming a product or service. According to the theory, an action is good if it is for the good of the greatest number of people. However, giving a dry biscuit to a man who is dying of thirst will increase his pain. Kitchener, ON: Batoche Books, 2000. Utility measures the benefits and disadvantages (drawbacks) of consuming a product or service. The second theory, called deontology, will be addressed later. John Stuart Mill, a great 19th century utilitarian figure, spoke of benefits and harms not in terms of pleasure and pain alone but in terms of the quality or intensity of such pleasure and pain. According to Eggleston (453), welfarism is the understanding that the wrongness or rightness of operations depends on society’s conceptions of welfare or wellbeing. This approach focuses on using ethical actions or morally right action that will promote the good value among a society. “Consequentialism, constraints and the good-relative-to: A reply to Mark Schroeder.” Journal of Ethics & Social Philosophy, 3(1), 1-8, 2008. 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). Such rules guide individuals on what will bring out the best consequences. The principle of individualism in utilitarianism holds that every individual, as it is human nature, pursues happiness, thus, will engage in actions that maximize utility. Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. If the joker died, there would be less unhappiness. The term may also refer to pleasure or satisfaction that people derive from being somewhere. One very good example is the airlines industry. Philosophers say that utilitarianism is a version of consequentialism. “Utilitarianism and welfarism.” The Journal of Philosophy, 76(9), 463-489, 1979. The word total is important here: if you act ethically according to utilitarianism, you’re not maximizing yourhappiness, but the total happiness of the whole human race. Doing what is right is obeying your duties and the rule that guide a business. 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. 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 . The notion of ethical business practices has led to the formation of theories including the utilitarian theory, rights theory, justice theory, caring theory, and virtues theory, which have since been integral in the understanding of business ethics. In business, the management may decide to increase the wages and benefits of their employees if it improves the wellbeing or promotes the happiness of their employees. Batman has been in a position to kill the Joker dozens of times. It makes people have the urge to be as effective as possible to change the world and make it a better place. This aspect of utilitarianism suggests that actions are good for the greatest wellbeing of the society or many people. The first theory, utilitarianism, we will consider in this lecture. Happiness and unhappiness also mean the absence of pain and the presence of pain respectively. Most businesses consider this while making their hiring decisions, hoping that their new employees would live to the expectations by doing the best they can for the greater good of the business. Consequentialism states that the consequences of an action are the only standard of right and wrong. One approach maintains that we judge actions by their consequences and the other maintains that we judge actions by appeal to rules. The action of saving him will result in great unhappiness. “Utilitarianism.” Elsevier, 2012. ... Kantian Approach to Business Ethics just from $13,9 / page. Utilitarianism is used frequently when business leaders make critical decisions about things like expansion, store closings, hiring, and layoffs. Utilitarianism is an ethical philosophy that an action is right if it promotes happiness for the majority of people. We have also applied it to the ethics of raising animals for food. Back to the concepts of pain and suffering; the ethical position of utilitarianism is that human beings should be happier and have less suffering. Ethical theories depend on what is right and wrong and the end result of the action. Believers in utilitarianism disagree on several points. Examples of Utilitarian Ethics One example of utilitarianism in business is the practice of having tiered pricing for a product or service to different types of customers. If not entirely his fault, won’t it be just a tiny bit his fault? The Common Good Approach regards all individuals as part of a larger community. Hence, under utilitarianism, no moral principle is necessary in itself, i.e., it is not absolute. 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). If we delve deeper, we can see a lot of examples of utilitarianism in business and workplace. 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. 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Definition and examples, utility is the pleasure or satisfaction that people derive from. The fourth element required to apply utilitarianism in business is aggregation, which is the notion that the wrongness or rightness of actions depends on their ability to average the benefits brought to all individuals. Ethical behaviour of people doing business is very important in our society. Businesses can apply the concept of consequentialism in their operations even though it may contradict the moral and ethical systems that are in place. Some believe that we should choose actions according to their likely results. However, utilitarianism, unlike other forms of consequentialism, takes into account the interests of everybody equally. However, the challenge that utilitarianism poses to other views is whether the effects of disobeying and breaking these moral rules would be worse or not. Sen, Amartya. According to this doctrine, actions are morally right if their consequences lead to happiness. The main idea of utilitarian ethics is: secure the greatest good for the greatest numb… Web. Calculating Consequences: The Utilitarian Approach to Ethics. Saving a loving mother from drowning will make her, her husband, children, other relatives, and friends very happy. Also read utilitarianism and business ethics essay. Saving a loving mother from drowning will make her, her husband, children, other relatives, and friends very happy. Web. This concept is referred to as effective altruism whose supporters claim to want to do the most good they can do. Proponents also disagree on whether we should maximize average or total utility. As an ethical theory, it was supported by the works of John Stewart Mill and Jeremy Bentham. Utilitarianism holds that what’s ethical (or moral) is whatever maximizes total happiness while minimizing total pain. Utilitarianism is an ethical theory that suggests that the best actions are those that maximize utility. He described utility as the sum of all pleasures an action brings minus all the suffering that it brings. The doctrine that an action is right in so far as it promotes happiness, and that the greatest happiness of the greatest number should be the guiding principle of conduct.”. According to Sen (471), welfarism aims at maximizing every individual’s utilities. That is, the utilitarian approach seems to imply that it would be ethical to inflict pain on one person if that action results in a net increase in happiness. It characteristically encourages individuals to act in whatever ways they want as long as their actions lead them to the greatest levels of wellness. When debriefing an ethical dilemma, the Common Good Approach can be useful when the issue involves, or should involve, the overall picture or environment. necessitate a refutation of utilitarian ethics. In this article, I suggest and support a utilitarian approach to business ethics. Utilitarianism provides a guiding framework of decision making rooted in social benefit which helps direct business toward more ethical behavior. utilitarianism was developed by jeremy bentham and is a teleological theory where the moral value of an action can be judged by the likely consequences the aforementioned bentham lived in an era of great social ... What is the utilitarian approach to business ethics and examine its weaknesses? In contrast to Utilitarianism, deontological theories identify commands and prohibitions that are determined as binding without regard to consequences. However, what about saving a suicide bomber from drowning, especially if he is about t… Utilitarianism in the workplace focuses on ethics, democracy, rights and responsibilities within the business … Utilitarianism has been applied to social welfare economics and the global poverty crisis. 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. They do not necessarily refer to a “utilitarian calculus,” but whenever they take stock of what is to be gained and what might be lost in any significant decision (e.g., in a cost-benefit analysis), they make a utilitarian determination. Utilitarianism is a moral theory, which works as a form of consequentialism helps individuals to assess whether an action is good or bad. Utilitarianism and Business Ethics. For example, a business may manufacture and sell substandard and unsafe products in their quest for more. For example, Bentham defined benefits and harms in terms of pleasure and pain. © 2020 - Market Business News. A theory of ethical behavior, utilitarianism holds that an action is "right" to the extent that it benefits people or society, either by creating happiness, improving well-being, or reducing suffering. Jeremy Bentham (1748-1832), a British philosopher, social reformer, and jurist, founded utilitarianism. For example, giving a dry biscuit to a starving man will reduce his pain. This is not an example of the work produced by our Essay Writing Service. However, it should be stressed that since utilitarianism changes people’s lives in many ways, the same can be replicated in the businesses or companies that these people do or work for. 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 … Whether actions lead to unhappiness or happiness depends on the circumstances. 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. An introduction to the principles of morals and legislation. 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. 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. In economics, we can replace the terms ‘satisfaction and pleasure’ with ‘value for money.’. The Oxford Living Dictionaries say the following regarding the term: “1. The theory of utilitarianism can be applied in business in many ways. 14th Jul 2017 Philosophy Reference this Disclaimer: This work has been submitted by a university student. Web. Would proponents of utilitarianism advise him to kill the joker? The fourth of the five theories is the Common Good Approach. 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 … Every business focuses on making and increasing more profits as its primary goal, which may lead them to use the means, which may be considered immoral, unethical or illegal. "Rule" Utilitarian Ethics An example of rule utilitarianism in business is tiered pricing for a product or service for different types of customers. The Utilitarian Approach assesses an action in terms of its consequences or outcomes; i.e., the net benefits and costs to all stakeholders on an individual level. For example, by selling quality and safe products, a business will be increasing its intrinsic value while meeting the needs of their customers at the same time. We all know that business class passengers pay a premium price to get all the luxuries of that class that the airline offers. By ensuring their employees are satisfied and happy at a personal standard, the business will also be putting themselves on the path to success. This measure directly influences demand, which subsequently determines the price of things. The second element that businesses require to apply utilitarianism is welfarism. Print. The application of this theory can either be positive or negative. Normative theories of ethics are those that offer a principle as the key criterion by which actions are determined to be good or bad. Back to the concepts of pain and suffering; the ethical position of utilitarianism is that human beings should be happier and have less suffering. In this regard, businesses will take actions that bring them happiness. Utilitarianism is a philosophical approach that is very often applied to ethics. Therefore, actions are morally wrong if they lead to unhappiness. The classic form of results-based ethics is called utilitarianism. “Utilitarianism ethics in healthcare.” International Journal of the Computer, the Internet, and Management, 12(3), 63-72, 2004. Happiness for businesses may include increased profits, increased customer satisfaction levels, superior reputation, and improved employee satisfaction levels, among others. However, this does not mean that everyone is a utilitarian because as a fundamental rule, there basic moral standards that one should not break. : Ethics provides a set of standards for behavior that helps us decide how we … It also measures the benefits and drawbacks of participating in an event or experiencing something. For example, giving a dry biscuit to a starving man will reduce his pain. 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