Utilitarianism Is the Most Useful Ethical Theory to Guide Company Decisions. Discuss Essay Example
Topic 1: Utilitarianism is the most useful ethical theory to guide company decisions. Discuss
Introduction
Ethical theories are critical to organisational transformation. Ethical theory is generally based upon moral philosophy and may be classified on many different dimensions; however, there are several core moral philosophies which are used in business ethics. They are egoism, utilitarianism, deontology, rights and relativism (Bartlett, 2003). All of which can be used to guide company in decision-making process. This paper agrees that utilitarianism is the most useful ethical theory to guide company decisions but only to a certain extent.
Theory of Utilitarianism
Historically, the foundations of utilitarianism diverged into two paths. One path was taken by John Stuart Mill, who saw utilitarianism as providing guidance to human beings by regarding higher and lower preferences. The other path was taken by Jeremy Bentham, whose hedonistic calculus made no comparative judgments about the worth of preferences but simply took them as a given (Brady, 1999). Utilitarianism is derived from the word “utility”. Utility can be defined as what is best in a specific case or as what is generally preferred in most contexts (Johnson, 2007). Both of which basically describe the two versions of utilitarianism, Act Utilitarianism and Rule Utilitarianism, respectively. Utilitarianism holds that actions and plans should be judged by their consequences (Sidgwick, 1874; Smart, 1973). In its classical formulation, utilitarianism claims that behaviours that are moral produce the greatest good for the greatest number (Mill, 1863). Decision makers are required to estimate the effect and consequences of each alternative on all the parties affected and to select the one that optimises the benefits for the greatest number (Cavanagh et al, 1981). From utilitarianism, we are encouraged to focus on the results or the consequences of decisions made, not the motives behind the decisions or
Introduction
Ethical theories are critical to organisational transformation. Ethical theory is generally based upon moral philosophy and may be classified on many different dimensions; however, there are several core moral philosophies which are used in business ethics. They are egoism, utilitarianism, deontology, rights and relativism (Bartlett, 2003). All of which can be used to guide company in decision-making process. This paper agrees that utilitarianism is the most useful ethical theory to guide company decisions but only to a certain extent.
Theory of Utilitarianism
Historically, the foundations of utilitarianism diverged into two paths. One path was taken by John Stuart Mill, who saw utilitarianism as providing guidance to human beings by regarding higher and lower preferences. The other path was taken by Jeremy Bentham, whose hedonistic calculus made no comparative judgments about the worth of preferences but simply took them as a given (Brady, 1999). Utilitarianism is derived from the word “utility”. Utility can be defined as what is best in a specific case or as what is generally preferred in most contexts (Johnson, 2007). Both of which basically describe the two versions of utilitarianism, Act Utilitarianism and Rule Utilitarianism, respectively. Utilitarianism holds that actions and plans should be judged by their consequences (Sidgwick, 1874; Smart, 1973). In its classical formulation, utilitarianism claims that behaviours that are moral produce the greatest good for the greatest number (Mill, 1863). Decision makers are required to estimate the effect and consequences of each alternative on all the parties affected and to select the one that optimises the benefits for the greatest number (Cavanagh et al, 1981). From utilitarianism, we are encouraged to focus on the results or the consequences of decisions made, not the motives behind the decisions or