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Utilitarianism

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Business and Economics Reporting

Definition

Utilitarianism is an ethical theory that suggests that the best action is the one that maximizes overall happiness or utility. This approach evaluates the moral worth of actions based on their consequences, seeking to produce the greatest good for the greatest number of people. It encourages individuals to consider how their decisions will affect not only themselves but also others in the broader community.

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5 Must Know Facts For Your Next Test

  1. Utilitarianism was developed by philosophers Jeremy Bentham and John Stuart Mill, who emphasized the importance of happiness and welfare in ethical decision-making.
  2. The principle of utilitarianism can be summarized by the phrase 'the greatest happiness for the greatest number,' highlighting its focus on collective well-being.
  3. Utilitarianism can be applied in various contexts, including economics, public policy, and personal ethics, guiding decisions that impact society as a whole.
  4. Critics argue that utilitarianism can justify morally questionable actions if they lead to a net increase in overall happiness, raising concerns about justice and individual rights.
  5. The theory distinguishes between act utilitarianism, which assesses each individual action for its utility, and rule utilitarianism, which evaluates the utility of following general rules.

Review Questions

  • How does utilitarianism differ from other ethical theories in its approach to moral decision-making?
    • Utilitarianism differs from deontological ethics, which focuses on adherence to rules and duties regardless of outcomes. While deontological theories may deem an action morally wrong regardless of its consequences, utilitarianism emphasizes the results of actions as the basis for morality. This means that utilitarian thinkers evaluate choices based on their ability to promote overall happiness, leading to more flexible but potentially contentious moral judgments.
  • Discuss how utilitarianism could be applied to a real-world scenario in business ethics, such as corporate decision-making.
    • In a business context, utilitarianism can guide corporate decision-making by evaluating actions based on their potential impact on stakeholders. For instance, when a company considers downsizing, a utilitarian approach would assess how this decision affects employees, shareholders, customers, and the community. If the action leads to greater overall benefits—such as saving the company from bankruptcy and preserving jobs—utilitarian ethics may support it. However, this also requires weighing short-term harm against long-term gains.
  • Critically analyze the implications of utilitarianism on social justice issues and how it might conflict with individual rights.
    • Utilitarianism's focus on maximizing overall happiness can lead to conflicts with social justice and individual rights when decisions prioritize majority benefits over minority protections. For example, if a policy benefits a large group while disadvantaging a small group, utilitarian logic might support it despite potential injustice. This raises ethical dilemmas about whose happiness counts more and how to balance collective good against individual rights. Critics argue that such an approach risks marginalizing vulnerable populations and undermining fundamental human rights.

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