Comparison of Utilitarianism and ethics in business
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Comparison of Utilitarianism and ethics in business
In business, ethics is a vital component for success. Utilitarianism ethics by Jeremy Bentham is one form of ethical theory that focuses on outcomes of a decision by having a determination, whether it is right or wrong. More importantly, it holds that a business decision with the most ethical choice tends to be that which can have the highest good linked with the most significant number. Since most business decisions are based on cost and benefits metrics, unethical decisions that businesses undertake are explained by the same principle. Moreover, in business, shareholders are often interested in return for their investments, which tends to compel owners or management of the business to choose critical decisions (Fok, & Payne et al., 2016). Some of the critical decisions tend to be inclined to take shortcuts or actions that are only inclined towards the collective benefits to every stakeholder rather than the value of process or moral reasoning.
Besides, the utilitarian approach typically evaluates outcomes based on consequences. The majority of decisions that business owners tend to reach are often based on cost minimization for the majority of business processes at the expense of producing quality, whether its service or products. The reduced costs or cutting corners will often bring short-term gains that will attain the highest good for the business in terms of the bottom line, but in the long run, it would compromise the quality of service or reputation of the business. Thus, the monetary gain the business achieves in the short-term is reflective of outcomes that can be quantified in the form of shareholder dividends or employee benefits at the expense of long-term benefits that the business could attain. Also, in the business sphere, the utilitarianism approach is often based on statistical analysis focused on probable outcomes, which explains the unethical decisions for the business to reach, such as a goal. The same approach explains managers’ decisions to choose the marginal utility of an outcome for all the stakeholders in the business.
References
Fok, L. Y., Payne, D. M., & Corey, C. M. (2016). Cultural values, practical orientation, and ethical decision making: A comparison of US and Puerto Rican professionals. Journal of Business Ethics, 134(2), 263-279.