What is utilitarianism and how does it apply to business ethics?

What is utilitarianism and how does it apply to business ethics?

Utilitarianism is an ethical theory that suggests actions are right if they promote the greatest happiness for the greatest number. In business, this means making decisions that maximize overall benefit to stakeholders.

Can you give me an example of utilitarianism in a business decision?

Sure! A company might decide to implement a new policy that reduces costs by automating certain jobs. While this may lead to job losses, the overall savings could allow the company to lower prices for consumers, benefiting a larger group.

What are some criticisms of utilitarianism in business?

Critics argue that utilitarianism can justify unethical actions if they result in a net benefit. For example, sacrificing a few employees' jobs for greater profit might be seen as acceptable, which raises moral concerns.

How can businesses balance utilitarianism with other ethical theories?

Businesses can adopt a mixed approach by considering rights, duties, and justice alongside utilitarian outcomes. This ensures that while maximizing benefits, they also respect individual rights and fairness.