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English According to this philosophy, an action is morally right if its consequences lead to the happiness of people and wrong if they lead to their unhappiness. C. people have dignity and need to be treated as such. Utilitarianism provides a guiding framework of decision making rooted in social benefit which helps direct business toward more ethical behavior. "Utilitarianism and Business Ethics" in Business Ethics: A Philosophical Approach by Werhane and Donaldson Andrew Gustafson at the expense of the many taxpayers-because the relative significance of the taxes used for the trial are insignificant in comparison with the good of his fair trial.Bentham said that in each instance, we must consider the following aspects of the forcasted outcome:1. Answer Utilitarianism is a consequentialist ethical approach – it focusses on the outcomes of an act to judge its ‘goodness’. The Utilitarian ethics was proposed by John Stuart. Enter the email address you signed up with and we'll email you a reset link. We don’t want to live in misery all of the time, even if pessimism is the star of every thought that we have. 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. Utilitarianism holds that what’s ethical (or moral) is whatever maximizes total happiness while minimizing total pain. • Mill was suspicious of universal male suffrage, and advocated education for all as a key to graduating to the happy life. Ethics in the Workplace Classical and Contemporary Ethical Philosophies Ethical philosophies served as guide for people in the workplace to make moral decisions in conducting business. A CASE STUDY - STRATEGY AT H&R BLOCK, INC. 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. Instead, the fundamental unit of human action for him was utility—solid, certain, and factual.. What is utility? Calculating Consequences: The Utilitarian Approach. • Pleasures were distinguishable between lower bodily pleasures and higher intellectual or spiritual pleasures – and if you wanted to know which was better ask someone who’d experienced both. , implementing new technology. Rule utilitarianism is a form of utilitarianism that says an action is right as it conforms to a rule that leads to the greatest good, or that "the rightness or wrongness of a particular action is a function of the correctness of the rule of which it is an instance". 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. Examples for utilitarianism: business and workplace issues. Mill would argue that we are concerned for others because of a general feeling of sympathy, which as a matter of fact, we all have. Our moral belief about life changes over time. The decision making in business must be based on the ethics of utilitarianism and deontology to combine the better part of both ethics and produce desirable results. Let a Professional Expert Help You, Ask a professional expert to help you with your text, Give us your email and we'll send you the essay you need, By clicking Send Me The Sample you agree to the terms and conditions of our service. Utilitarianism can be used in any business decision that seeks to maximize positive effects (especially morally, but also financially) and minimize negative ones. John Stuart Mill's idea of rule utilitarianism is an ideal approach to business ethics due to consideration of not only the consumer but the employees. Utilitarianism holds that the most ethical choice is the one that will produce the greatest good for the greatest number. Mill was worried to move away from what he once called a “swinish” philosophy based upon base enjoyments, to something subtler. That part of his personality that harbours these hostile antisocial feelings must be excluded from membership, and has no claim for a hearing when it comes to defining our concept of social utility. This seems very simple to claims one’s act to be ethical and is widely used in the practical world today. Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. Examples Of Utilitarianism In Business . D. human beings have fundamental rights and privileges that transcend national cultures. Real Life Examples Of Utilitarianism . • Goodness was based on more than just pleasure, but on the virtue of sympathy for our fellow human beings, a concern for their rights and our duty to promote the common good. For example, Bentham defined benefits and harms in terms of pleasure and pain. Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. One approach maintains that we judge actions by their consequences and the other maintains that we judge actions by appeal to rules. Whether actions lead to unhappiness or happiness depends on the circumstances. He concerned argue for the abolition of the monarchy, universal male suffrage (not simply linked to land), and guideline by parliament as judge of the common interest. As with Bentham’s formulation, utilitarianism in business ethics is primarily concerned with outcomes rather than processes. 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. Utilitarian Approach Example The Ford Pinto case is where Ford realised that their batch of cars was faulty but still decided to sell them on the grounds that compensation was a lot cheaper. you Enumerating certain trade-offs as a result of making design choices is a great example of using utilitarianism in engineering design. In this article we make some initial remarks on Bentham and Mill prior to evaluating a famous case in 1972 where utilitarian principles seemed to cause a really unethical result – the Ford Pinto case. This study analyzes these theories in the context of the case of deaths at the Massey Energy Company. In this article, I suggest and support a utilitarian approach to business ethics. In applying utilitarian principles to business ethics, the cost-benefit analysis is most often used – it is a good decision making tool. Mill adapted his form of the utilitarian theory so that it would reflect the fact that pleasures are not all of equal value, and that he took human nature into account. All these normative ethics are tested using the Utilitarian approach. $35.80 for a 2-page paper. Utilitarian decisions are those that ultimately produce a significant benefit, or common good, when performed. Bentham believed … When applying utilitarian ethics, the most important consideration, which is a common interest for everyone, is the benefit it may give to the general population (Hammond 42). B. the moral worth of actions or practices is determined by their consequences. The goal of reducing personal harm while increasing happiness is something that every person pursues at some point in their life. If a tax is then placed on UK business to pay for this, the cost is borne by the UK taxpayer, the benefit is enjoyed by Sweden. According to this theory, the happiness or pleasure of the greatest number of people in society is considered as the greatest good. We are pleasure-seekers (hedonists). spam or irrelevant messages, We use cookies to give you the best experience possible. Sample papers. 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. It should be stated that the business ethics can be viewed in two different dimensions, namely the utilitarian and deontological. You can download the paper by clicking the button above. In this article, I suggest and support a utilitarian approach to business ethics. These theories can be used on their own or in combination with each other. As with Bentham’s formulation, utilitarianism in business ethics is primarily concerned with outcomes rather than processes. People who work for income are members of the utilitarian organization. Utilitarianism is used frequently when business leaders make critical decisions about things like expansion, store closings, hiring, and layoffs. 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). Hire a subject expert to help you with Kantian Approach to Business Ethics. Ethical behaviour of people doing business is very important in our society. As a part of general and practical ethics, business ethics focuses on moral or ethical principles and issues that occur in the business environment, providing judgments as … We maximise happiness by obeying laws and social conventions which experience has shown promote the common good – such as respect for life, personal freedom and private property, or good manners and politeness. As Lawrence Hinman observes, the aim is to find “the greatest overall positive consequences for everyone” (Ethics, 136). John Stuart Mill was the Godson of Bentham and grew up a utilitarian, he adapted some of the ideas of the Bentham, Mill believed that happiness was the basic standard for utility and not pleasure. The idea of applying utility to ethics has its roots in 18th century philosophy. Utilitarianism and Business Ethics. MAHAYANA-01 Utilitarianism and Business Ethics In this article, the author presents and supports a utilitarian approach to business ethics. Bentham’s fundamental axiom states that, “It is the greatest happine… Other intentions such as duty, regard, are unimportant. Therefore Act utilitarianism can also be used to justify many horrible and evil things, such as killing millions of people to achieve peace for example. In the whole of the history of the ethical theory, utilitarianism can best be discerned following that it has been used there for long. ” – There is one excellent, enjoyment, and one evil, pain. Companies will attempt to work out how much something is going to cost them before taking action that should, ideally, result in consequences favourable to everyone. ” (Ethics, 137). A few different business ethics theories exist, such as the utilitarian, rights, justice, common good and virtue approach. Workplace Example Of Utilitarian Ethics. Get a verified expert to help you with Utilitarianism and Business Ethics, Are You on a Short Deadline? Utilitarianism answers this question with an economic analysis that focuses on human lives and says that those actions that make people happy are good. There are classical normative ethical philosophies as well as contemporary ethical philosophies being used. Utilitarianism provides a guiding framework of decision making rooted in social benefit which helps direct business toward more ethical behavior. The action of saving him will result in great unhappine… Retrieved from http://studymoose.com/utilitarianism-and-business-ethics-essay. If the outcome leads to the greatest good (or the least harm) for the greatest number of people, then it is assumed the end justifies the means. Why you must treat utilitarian, emotional and fanatical customers. – Social goals should be fixed by aggregating individual goals in terms of increasing enjoyment and minimising discomfort. Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. Utilitarianism provides a guiding framework of decision making rooted in social benefit which helps direct business toward more ethical behavior. "Mill's Theory of Utilitarianism" (in Gale Researcher Philosophy Series 1 and 2 (Internet Library Reference Database) (Detroit, MI. Another example of the utilitarian organization is a business organization where an employee works in a company for the salary he receives as compensation. (2016, Dec 09). Business Ethics and Consequentialism. 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. Two of the most popular approaches to ethics in modern philosophy are utilitarianism and deontological ethics, both of which are normative theories. Why should they? Ethical business practice, using utilitarianism, would thus consider the good and bad consequence for everyone the action would affect, treat everybody as having equal rights (at least in Mill’s weak rule utilitarianism), with no bias towards self, and would use it as an objective, quantitative way to make a moral decision. Sorry, preview is currently unavailable. JOHN STUART MILL (1806-73) Mill’s variation of utilitarianism was so different from Bentham’s that it almost appears that he rejects it. If one is to apply the Kantian theory on this situation – stealing as the maxim and the reason for doing is justifiable – the supervisor must be taught of a lesson, then stealing can become the universal law of getting even to supervisors. Students looking for free, top-notch essay and term paper samples on various topics. • Mill was keen to see fairer distribution of wealth and income and rejected the extreme form of free market economics. Applied to business, Kantian ethics is too rigid as the principle of duty stifles progress. Utilitarianism is an ethical theory that asserts that right and wrong are best determined by focusing on outcomes of actions and choices. -- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free. Such rules as “always pay your taxes” suffer from this problem, that the rich are actually subsidising the poor. Lastly, It is impractical to say that we should calculate the morality of each choice. More generally, we are reviewing five theories that provide the ethical building blocks you can use in your classroom to debrief any ethical dilemma. BUSINESS ETHICS :: Utilitarianism • Introduction • Jeremy Bentham • Theory of Utility • Types of Utilitarianism • Some Criticisms • Moral Dilemma Introduction Over the course of the next two lectures we will be looking at two of the most politically and philosophically significant theories of modern times (1500- However, when two principles or rules come into conflict, such as the choice to lie to save my friend’s reputation, I revert to being an act utilitarian – making my decision based on a balance of outcomes – choosing that action which maximises happiness. What Is A Utilitarian Approach. Rule utilitarianism is the belief that higher intellectual pleasures are more valuable than lower, physical pleasures. Utilitarianism is a philosophical approach that is very often applied to ethics. Although it is not embraced by all people, the utilitarian approach has been used by humans for many years. Utilitarian approach- This approach assesses an action in terms of the consequences and the outcomes. "Rule" Utilitarian Ethics An example of rule utilitarianism in business is tiered pricing for a product or service for different types of customers. Saving a loving mother from drowning will make her, her husband, children, other relatives, and friends very happy. 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. A person displaying ill will toward others does remain a member of this community, but not with his whole personality. Ethical Approaches To Decision Making . By continuing we’ll assume you’re on board with our cookie policy, Don’t waste Your Time Searching For a Sample, Philosophical Concepts of Act and Rule Utilitarianism, Theories of Justice: John Stuart Mill’s Harm Principle. Post author By Joseph; Post date July 6, 2018; In the history of philosophy, utilitarianism is known to be very powerful approach that has been useful for many years. Utilitarian and deontological ethics in medicine. This opinion is shared by Alasdair Macintyre when he states ‘Utilitarianism can justify horrendous acts as being for the pleasure of the many’. 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. Preference utilitarianism suggests that a mid-point should be found between this ‘trade-off’ of consumers material preference and employees welfare preferences. Utilitarianism provides a guiding framework of decision making aligned for the benefit of society which helps direct business toward more ethical behavior. Examples Of Utilitarianism In Workplace . Five ways to shape ethical decisions: utilitarian approach. But suppose (as a matter of fact) I don’t share this feeling, then the rational utility maximising thing to do is to avoid paying tax as far as possible – move abroad, set up tax shelters, register my company in the lowest tax economy. Just as John Stuart Mill objected to the coldest, most basic version of the theory, modern business ethicists point to utilitarianism’s limits for practical choices. It is a universal concept that all of us can understand. Generally speaking, utilitarian philosophy teaches that the consequences of actions are always of great importance and that justice and beneficence should be the guiding principles while making decisions (Hales 1608). Utilitarian Ethics In Business . By creating a society which places more value on actions that bring happiness, we could create a place where there is more common ground to be found. Hire verified expert. We all know that business class passengers pay a premium price to get all the luxuries of that class that the airline offers. Thus, it is the intention behind an action rather than its consequences that make that action good. How does Utilitarianism affect business ethics? Design with a Utilitarian Approach in engineering is more about identifying these tradeoffs in design dilemmas, and weighing the costs and benefits that come with them. 1. 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. Doing what is right is obeying your duties and the rule that guide a business. Utilitarianism is already widely used as a business ethic approach. The second theory, called deontology, will be addressed later. As an ethical theory, it was supported by the works of John Stewart Mill and Jeremy Bentham. Quantitative utilitarianism, or Benthamite utilitarianism, is a branch of utilitarianism that was developed out of the work of Jeremy Bentham (1747-1832) – an English philosopher, economist, political scientist, legal scholar, and social reformer. In this article, I suggest and support a utilitarian approach to business ethics. For example, in a family run business, they may be partial to choose employees based on who they know and so are motivated by personal interest. As Hinman comments “utilitarians must answer the question of whom are these consequences for? Of course, every dilemma can be dissected using more than one approach, and thus, the end result or decision may […] – The empirical computation might be made with a hedonic calculus which allocates hedons of enjoyment to various options. – Human nature is naturally encouraged by “2 sovereign masters, satisfaction and discomfort”. (p. 138) The utilitarian approach to business ethics suggests that: A. people should be treated as ends and never purely as means to the ends of others. 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. However, giving a dry biscuit to a man who is dying of thirst will increase his pain. The origins of this principle date back to the 18th and 19th centuries, beginning with the writings of the English legal reformer named Jeremy Bentham. Consequentialism is a moral theory that states that the consequences of one's actions are the basis for any morality or judgment toward that action. 64. It is the only moral framework that can be used to justify military force or war. Sign up to order such articles directly from a professional writer, and save enormous costs charged as commission by agents Our first approach: Utilitarian. Also read utilitarianism and business ethics essay. Academia.edu no longer supports Internet Explorer. BENTHAM (1748-1832) Bentham turned down Christianity and was influenced by David Hume (1711-76) and the French philosophe Helvitius, who argued that real justice was synonomous with the good of the whole. An example of rule utilitarianism in business is tiered pricing for a product or service for different types of customers. – The objective of federal government is to harmonize conflicting interests by passing laws with proper charges for those who cause discomfort to others – thus customizing their behaviour. According to this ethics any decision would be made for the greater good. If we delve deeper, we can see a lot of examples of utilitarianism in business and workplace. To act from a good will is to act from duty. • Mill argues for a weak rule utilitarianism. To get better involved in the issue, the two different philosophical approaches should be taken into account. Imagine that the U.S. Central Intelligence Agency gets wind of a plot to set off a dirty bomb in a major American city. Utilitarianism is a normative, consequentialist, empirical viewpoint which connects the concept of a good action to one which promotes optimal pleasure or joy, discovered by including up expenses and benefits (or discomforts and enjoyments). Quantitative utilitarianism is concerned with aggregate utility maximization (i.e., maximizing the overall happiness of everyone) and uses a hedonic calculus to determine the rightness or wrongness of actions.
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