Utilitarian Approach

Definition

The utilitarian approach is an ethical framework that advocates for actions that maximize overall happiness or well-being for the greatest number of people. This principle emphasizes the consequences of actions, suggesting that the best decision is one that results in the most favorable balance of good over harm. In supply chain management, this approach often leads to ethical leadership that prioritizes stakeholder interests and sustainable practices.

5 Must Know Facts For Your Next Test

1. Utilitarianism was founded by philosophers Jeremy Bentham and John Stuart Mill, who argued for the greatest happiness principle as a guide for ethical decision-making.
2. In supply chains, a utilitarian approach can help leaders make decisions that balance profit with social and environmental responsibilities.
3. Utilitarian ethics require careful consideration of both short-term and long-term impacts on various stakeholders involved in the supply chain.
4. This approach can sometimes lead to difficult trade-offs where the needs of a minority may be sacrificed for the greater good.
5. Implementing a utilitarian approach often involves using quantitative methods to evaluate the potential benefits and harms of different choices.

Review Questions

• How does the utilitarian approach influence ethical decision-making in supply chain management?
  • The utilitarian approach influences ethical decision-making in supply chain management by prioritizing outcomes that benefit the majority. It encourages leaders to consider the effects of their decisions on various stakeholders, including employees, consumers, and the environment. By assessing potential consequences, leaders can make informed choices that maximize overall well-being, while balancing profit motives with social responsibility.
• In what ways can the utilitarian approach create conflicts in stakeholder interests within a supply chain?
  • The utilitarian approach can create conflicts in stakeholder interests when pursuing the greatest good for the majority may negatively impact a minority group. For example, a decision that lowers production costs to benefit consumers might lead to job losses for employees or harm local communities. Such trade-offs challenge ethical leaders to carefully weigh different perspectives and consider how their actions affect all parties involved, striving for solutions that minimize harm while maximizing benefits.
• Evaluate how adopting a utilitarian approach can enhance or undermine sustainable practices in supply chains.
  • Adopting a utilitarian approach can enhance sustainable practices by encouraging decisions that benefit both society and the environment. When leaders prioritize overall well-being, they may invest in sustainable sourcing and eco-friendly technologies that promote long-term health. However, this approach can also undermine sustainability if immediate cost savings are prioritized over long-term environmental impacts. Ethical leaders must balance short-term gains with long-term consequences to ensure their practices align with sustainable development goals.

Related terms

Consequentialism: A moral theory stating that the rightness or wrongness of actions depends solely on their outcomes or consequences.

Stakeholder Theory: A theory in ethics and business that holds that the interests of all stakeholders, not just shareholders, should be considered in decision-making processes.

Moral Philosophy: The study of what is right and wrong in human conduct, encompassing various ethical theories including utilitarianism.