We can custom-write anything as well! Mill’s father, James, was a contemporary and associate of Bentham’s who made sure his son was tutored in a rigorous curriculum. In On Liberty, John Stuart Mill ________. Business Ethics: Ethical Decision Making and Cases (9th ed.). The goal of reducing personal harm while increasing happiness is something that every person pursues at some point in their life. While both ethical views are different they are also both correct. Employees and Employers. If happiness consists of leading the good life, what is good? Employees and Employers. On the other hand people knew their actions were contributing to immoral behaviour as self-interest (greed and pressure) clouded their decision to do what is right. Revolutionary movements broke out that year in France, Italy, Austria, Poland, and elsewhere. Learn More . In any ethical theory, morals are separated into good and bad. The traditional exposition of Kantian ethical theory in the business ethics literature is abstract, esoteric, and impractical compared to the more usable presentations of utilitarianism. Her self-interest was going to become a consequence for the majority and she was unable to predict the future so as to see how her decisions would affect people later on. Utilitarianism Business Ethics Strengths and Weaknesses. Work in the 21st-century workplace is no longer merely a means to an end; it is meaningful and calls upon people’s ambitions, beliefs and passions. 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. Do you believe it makes sense to continue to honor Bentham’s request today? As an alternative, Mill turned to Romanticism and poets like Coleridge and Johann Wolfgang Goethe (1749–1832). For Mill, harm was defined as the set back of one’s interests. In relating its consequential content to the Ford Pinto case, it would seem that the application of ethics had been dismissed in favour of profits, reputation and unethical practices. Utilitarianism is a relatively new idea in ethics. Utilitarianism, therefore, emphasizes the consequences or ultimate purpose of an act rather than the character of the actor, the actor’s motivation, or the particular circumstances surrounding the act. Following ethical dilemmas and ethical lapses in business practices that became eminent in the 1970s, the concept of business ethics emerged to expound business ethical principles (Arnold et al., 2010). Introduction. Utilitarianism may be employed in any business decision-making process that seeks to maximize positive effects (especially morally, but perhaps also financially and so forth) and minimize negative outcomes. UTILITARIANISM In Business EthicsUtilitarianism is an approach to ethics that goes back to the ancient Greeks. There are two dominant approaches in ethical theory today. Those who would respond to business pressures by evading controls will devise rationales and tactics to justify such an evasion for tactics of disinformation and deception that they may use (Donnelly, 2003). Thus, in utilitarianism, it is the consequences of our actions that determine whether those actions are right or wrong. It is the only moral framework that can be used to justify military force or war. Acceptability. Therefore, he introduced the harm principle, which states that the “only purpose for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others. What he ended up with, however, was not a rejection of utilitarianism but a synthesis of utility and human rights. Employees do have a choice and the freedom to make a moral decision however self-interest can sometimes turn a moral idea into an immoral decision; without the discipline there is no freedom (Wood, 2008). 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 … The university agreed, and Bentham’s body has been on display ever since. It is completely fine to exploit workers. Are you satisfied with this assessment of responsibility? If you need assistance with writing your essay, our professional essay writing service is here to help! It is a dramatic demonstration of utilitarianism. In fact, too much reliance on character might obscure decision-making. STUDY. Watch the video on the streetcar thought experiment and consider these questions. In act utilitarianism any action is permissible given that it increases pleasure for the greatest number of people and a successful business does exactly this. Utilitarianism is a specific type of consequentialism that focuses on the greatest good for the greatest number. The individual would choose a system of justice that sufficiently provided for the lower end of society because the individual could end up being in that lower position so, avoids it by being just and fair. it is logical to argue that financial stability makes the majority more happy and that sustainability would be seen as good as it makes people happy. In business contexts, utilitarianism implies an obligation for businesses to do what they can to act in a way that maximizes happiness and minimizes suffering. These issues have become part of the public debate in recent years and most likely will continue to be as such actions are considered in a larger social context. Unfortunately, the intensity and duration of Mill’s schooling—utilitarian conditions of education—were so extreme that he suffered a nervous breakdown at the age of twenty years. However, the consequences of this action didn’t create the most amount of good for the most amount of people. 3 pages, 1068 words. While the pay system of any organisation should be fair and just, greed and extreme pressure to perform presented self-interest drivers that awarded immoral behaviour. And therein lay the greatest utility for society and business. Business Ethics by Rice University is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted. In this example the agent has achieved the greatest good because the agent was able to blend together corporate-social-responsibility and the need to increase revenue. Deception, greed, and extreme pressure led to the demise of Enron (Beenen and Pinto, 2009). Where Bentham looked to numerical formulas for determining value, relying on the objectivity of numbers, Mill sought value in reason and in the power of language to clarify where truth lies. What does harm entail, and who decides whether a proposed action might be harmful? From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. A HR manager needs to take into consideration that there is no way of telling exactly what the costs of our behaviour will be, we just do what we think is right at that specific time (DeGeorge, 2010). Bentham wanted to show the importance of donating one’s remains to medical science in what was also perhaps his last act of defiance against convention. Write. His studies also included algebra, Euclidean geometry, economics, logic, and calculus. Instead self-interest influenced unethical behaviour by means of greed and pressure from Wall Street to benefit, not the organisation as a whole but, Jeff Skilling and management, personally, for financial gain. Looking for a flexible role? 14th Jul 2017 Philosophy Reference this Disclaimer: This work has been submitted by a university student. This makes Kantian ethics rigid because the consequence of an action is not necessarily separated from the action itself (DeGeorge, 2010). As a practical way of measuring value, Bentham’s system also plays a role in risk management. This was the reason science and debate were so important to Mill, because the determination could not be left to public opinion or intuition. Watch this video for a summary of utilitarian principles along with a literary example of a central problem of utility and an explanation of John Stuart Mill’s utilitarianism. In economics, utility is the pleasure or satisfaction that people derive fromconsuming a product or service. Rule utilitarianism (linked to Mill) tries to give the greatest overall benefit and happiness to society; the best rule/law of conduct is found to bring the greatest amount of good so that everyone can follow it. A hard … All stakeholders? As an illustration, let’s say you’ve volunteered to buy the paint for the fence that you and your three bordering neighbors share. For rights theory to be practical it must be used in combination with another ethical theory, such as ethical relativism, that will consistently outline the objectives of society. Basic utilitarianism is the soft, act version. The theory of rights can give a HR manager insight into how individuals are protected in an ethically correct way. Naturally, people seem to acknowledge that certain rules must have rational exceptions. The study of ethics focuses on human relationships and what is considered morally correct in human behaviors. perform what was asked of them in their relevant job role. We're here to answer any questions you have about our services. Initial reading is to get a rough idea of what information is provided for the analyses. No doubt, Mill’s early life and formation had a great deal to do with his championing of individual freedom. You can view samples of our professional work here. Therefore, there is no correct way to treat employees. Thus, harm was defined relative to an individual’s interests. Bentham’s fundamental axiom, which underlies utilitarianism, was that all social morals and government legislation should aim for producing the greatest happiness for the greatest number of people. John Stuart Mill sought to answer these objections on behalf of his mentor but then offered a synthesis of his own that brought natural rights together with utility, creating a new kind of utilitarianism, one that would eventually serve to underpin neoclassical economic principles. Just as science was beginning to understand the workings of cause and effect in the body, so ethics would explain the causal relationships of the mind. Utilitarianism and Business Ethics. Utilitarianism is a consequentialist theory. DeGeorge (2010) defines utilitarianism as an act of moral significance established by its involvement to create the most amount of good for the most number of people. In one hand people are morally trying to do the right thing but, in the case of Cassandra, they eventually get punished; she moved to another position being seen as a threat. Rather than making moral judgments, utilitarianism weighed acts based on their potential to produce the most good (pleasure) for the most people. 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). Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. It is completely fine to exploit workers. We may also define intervention and coercion differently depending on where we fall on the political spectrum. Why or why not? Acceptability. A HR manager needs to identify that the flaw in utilitarianism theory has no consideration for the minority; however, kantian theory suggests that it doesn’t neglect this issue i.e. Vladislav Valentinov, The Rawlsian Critique of Utilitarianism: A Luhmannian Interpretation, Journal of Business Ethics, 10.1007/s10551-015-2786-y, 142, 1, (25-35), (2015). Many people would agree that this idea of promoting goodness …show more content … The hedonic calculus has seven different criteria that must be considered to evaluate the balance between good and evil. So, could a HR manager be reasonable to assume that the same rules can be applied consistently in different circumstances? Utilitarianism holds that what’s ethical (or moral) is whatever maximizes total happiness while minimizing total pain. Only shareholders? This is not an example of the work produced by our Essay Writing Service. Utilitarianism holds that the most ethical choice is the one that will produce the greatest good for the greatest number. Fords cost/benefit analysis determined it would cost less to ignore it than recall all Pintos. I would stick with the dilemmas surrounding Business Ethics (this is what your examiners are really looking for.) Does the value that John Stuart Mill placed on the deliberative process and individual expression as the main ways of arriving at truth have any relevance for political debate today? A deeper analysis of Kant’s theory suggests that the concept of ethics is not based on desires or circumstances. After you identify your options for action, you ask who will benefit and who will be harmed by each. For instance, is society culpable for not intervening in cases of suicide, euthanasia, and other self-destructive activities such as drug addiction? Retrieved August 20, 2018, from https://books.google.co.in/ Presidential Decision-Making: Utilitarianism vs Duty Ethics Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Created by. Critics insist he was merely eccentric. It avoids the utilitarian flaw of allowing the minority to suffer for the benefit of the majority, based on free choice and similar to that of John Rawls’ theory of justice. Jeremy Bentham developed a quantifiable method for determining what was beneficial and what was detrimental. Our academic experts are ready and waiting to assist with any writing project you may have. Learn. Are the Values Central to Business Ethics Universal? Utilitarianism provided a way of determining the total amount of utility or value a proposal would produce relative to the harm or pain that might result for society. Immanuel Kant’s theory (DeGeorge, 2010) suggests that an individual must have the freedom to truly act in a moral way. John Stuart Mill’s emphasis on human rights distinguishes him from Jeremy Bentham. This is because the practical application of the theory requires the ability to predict the long-term consequences of an action and, to predict those consequences with unfailing accuracy; past experience can, to some extent, guide future experience. He generously donated half his estate to London University, a public university open to all and offering a secular curriculum, unusual for the times. Is there a right or wrong answer? In the workplace, the idea of this concept is if you conduct yourself properly at work, then you will be able to achieve professional happiness. However I think you run the risk of producing a vague and bland answer. If we apply the Aristotelian and Confucian rule of the mean, we see that balance of responsibility and profitability makes the difference between sound business practices and poor ones. Company Registration No: 4964706. Utilitarianism in the workplace focuses on ethics, democracy, rights and responsibilities within the business environment. Is it the act of an eccentric or of someone deeply committed to the truth and courageous enough to act on his beliefs? In a sense many employees would have tried to do the right thing i.e. Bentham rejected religious authority and wrote a rebuttal to the Declaration of Independence in which he railed against natural rights as “rhetorical nonsense, nonsense upon stilts.”. Utilitarianism can be used in any business decision that seeks to maximize positive effects (especially morally, but also financially) and minimize negative ones. Utilitarianism is used frequently when business leaders make critical decisions about things like expansion, store closings, hiring, and layoffs. All work is written to order. This period also included advances in chemistry, astronomy, navigation, human anatomy, and immunology, among other sciences. No one theory on its own is truly valid, rather a collaboration of all theories should be used in order to give a professional (HR manager) the necessary tools to create strategies and examine the likelihood of unethical behaviour. However, an issue with this decision, while sherron was commended for doing the right thing, showed that her actions to neglect the corrupt senior management team (minority) for the stakeholders (majority) for a more ethical workplace started to inflicted damage to the entire business. In this way, consequentialism differs from Aristotelian and Confucian virtue ethics, which can accommodate a range of outcomes as long as the character of the actor is ennobled by virtue. d-dizzle101. This is based on the ability to foresee the consequences of an action as the choice that succumbs to the greatest benefit, to the majority of people, is the choice that is ethically correct. But what role, if any, should society play in defining what is harmful or in determining who is harmed by someone’s actions? DeGeorge (2010) indicates that an individual must interpret what characteristics of rights are in society, as this can pose implications. Ethical reasoning is not natural it’s a skill that must be learned and practiced. In utilitarianism, good is defined as the existence of pleasure and the absence of pain. Specifically, decis… For him, utilitarianism reflected the reality of human relationships and was enacted in the world through legislative action. To illustrate the concept of consequentialism, consider the hypothetical story told by Harvard psychologist Fiery Cushman. The idea of utilitarianism is tightly intertwined with the philosophy of consequentialism. Free resources to assist you with your university studies! Bentham’s protégé, John Stuart Mill, refined this system to include human rights. He created an ethical system based on it, called utilitarianism. The fence has to be painted one color: brown or white. Cable, News, Network (CNN) (2002) stated that Enron filed for liquidation, people lost their jobs, some committed suicide and many were jobless. Utilitarianism is a moral theory, which works as a form of consequentialism helps individuals to assess whether an action is good or bad. The ancient Greek and Roman philosophers believed in virtue ethics — morality was all about being a good, honest, hardworking person and excelling in your line of work. Sherron adhered to Enron’s ethical code of conduct when analysing the ethical dilemma of “accounting irregularities” that were present. Test. Advantages and Disadvantages of Utilitarian Ethics in Business. In addition, the Industrial Revolution transformed Great Britain and eventually the rest of Europe from an agrarian (farm-based) society into an industrial one, in which steam and coal increased manufacturing production dramatically, changing the nature of work, property ownership, and family. A collective approach to an action suggests it can determine whether an action is moral as it allows one to portray the result of everyone universally contributing to this action. In this Wireless Philosophy video, Julia Markovits (Cornell University) gives an introduction to the moral theory of utilitarianism. Utilitarianism and Business Ethics Essay Utilitarianism is a normative, consequentialist, empirical philosophy which links the idea of a good action to one which promotes maximum pleasure or happiness, found by adding up costs and benefits (or pains and pleasures). In general terms, it’s easy to understand the idea that we should all act to increase the general welfare. allowing the minority to suffer for the benefit of the majority. Matt, who intends only to scare the man but kills him by accident, will suffer a more severe penalty than his brother in most countries (including the United States). Others objected that utilitarianism placed human beings on the same level as animals and turned people into utility functions. Utilitarianism in business can lead to a bottom-line mentality in which decisions are based on achieving the greatest good for the organization as it pertains to the greatest number of stakeholders, including shareholders and all others affected by the actions of the organization The outcome is the determining factor, not the intent of the actors or whether people are treated humanely. According to DeGeorge (2010) rights are proposed by society which is protected and is given the uppermost precedence. The implications of such a system on law and public policy were profound and had a direct effect on his work with the British House of Commons, where he was commissioned by the Speaker to decide which bills would come up for debate and vote. In general terms, it’s easy to understand the idea that we should all act to increase the general welfare. You prefer white but your neighbors want brown. According to Mill, at an early age he learned enough Greek and Latin to read the historians Herodotus and Tacitus in their original languages. In an era today that some have characterized as "the age of self-interest," utilitarianism is a powerful reminder that morality calls us to look beyond the self to the good of all. In so doing, Mill reworked Bentham’s utilitarianism in some significant ways. 301 certified writers online. 2391 words (10 pages) Essay. Instead, the fundamental unit of human action for him was utility—solid, certain, and factual. Pages: 54 Words: 16054 Topics: Business Ethics, Justice, Research, Rights, Tax, Tobacco, Utilitarianism Upholding Human Rights Standard for Workers both Inside and Outside EXECUTIVE SUMMARY The present report is about the Importance of upholding human standards of the workers both inside and outside their home countries in the large clothing retailers. UTI/BE Strength: pleases community . It may even give them an opportunity to explore objections about the mechanistic and impractical nature of utilitarianism, especially from a customer perspective. Utilitarianism also exists in two different forms. In a similar vein, the poet Samuel Taylor Coleridge (1772–1834) accused Bentham of mixing up morality with law. The main idea of utilitarian ethics is: secure the greatest good for the greatest numb… In consequentialism, actions are judged solely by their consequences, without regard to character, motivation, or any understanding of good and evil and separate from their capacity to create happiness and pleasure. Why or why not? Utilitarianism and Business Ethics Deception, greed, and extreme pressure led to the demise of Enron (Beenen and Pinto, 2009). But some of the key concepts of utilitarianism talk about the conduct of public life. Utilitarianism is used frequently when business leaders make critical decisions about things like expansion, store closings, hiring, and layoffs. Relativism is a stronger claim as refutation that there are usually suitable moral standards. Since society endorsees rights they are considered to be ethically correct and suitable. Ethical relativism refers to the principle that there are no commonly valid or required moral standards as any two individuals with differences in culture, who have different ethical views, regarding an action, could simultaneously be correct (DeGeorge, 2010). Self-interest presents an underlying problem here. Mill was interested in humanizing Bentham’s system by ensuring that everyone’s rights were protected, particularly the minority’s, not because rights were God given but because that was the most direct path to truth. (credit: “Mortal Remains of Jeremy Bentham, 1832” by Weld Taylor and H. H. Pickersgill/Wikimedia Commons, CC BY 4.0), video on the streetcar thought experiment, video for a summary of utilitarian principles, Creative Commons Attribution 4.0 International License, Identify the principle elements of Jeremy Bentham’s utilitarianism, Distinguish John Stuart Mill’s modification of utilitarianism from Bentham’s original formulation of it, Evaluate the role of utilitarianism in contemporary business. Decisions are often made based on the “bottom line” of profit, numbers of stakeholders affected, or overall utility to the organization. Why rights? In an era today that some have characterized as "the age of self-interest," utilitarianism is a powerful reminder that morality calls us to look beyond the self to the good of all. How would you go about making the decision about what to do? Today, his body is on display as an “auto-icon” at University College, London, a university he endowed with about half his estate. Nozick’s theory suggests that people have the right to possess entitlements such as remuneration as long as it doesn’t worsen the position of anyone else (Nozick, 1974). Considering the social implications of an individual action highlights another limitation of utilitarianism, and one that perhaps makes more sense to us than it would to Bentham and Mill, namely, that it makes no provision for emotional or cognitive harm. Basic utilitarianism is the soft, act version. By accepting ethical theory, this can act as a guideline for a human resource (HR) manager to identify and handle the issues of self-interest. -- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free. The only effects important actions are positive and negative Crossref Christian Krijnen, Values and the Limits of Economic Rationality: Critical Remarks on ‘Economic Imperialism’, Elements of a Philosophy of Management and Organization, 10.1007/978-3-642-11140-2_5, (111-136), (2010). The underlying issue in the case study is self-interest. With reference to Enron’s code of ethics (2000) ‘dignity and mutual respect’, for all employees, is a right that the company has promised to respect and uphold. True or false? Rawls’ argued that regimented societies are uncommon due to the fact that what is just and unjust is usually in dispute (Rawls, 2003). When a man offends two volatile brothers with an insult, Jon wants to kill him; he shoots but misses. Then we must ask, who are the others we must consider? In the eyes of a HR manager, by taking action the majority of the stakeholders would benefit from a moral organisation adhering to their code of conduct, conducting fairness in all of their business activities. Bentham thus created a “hedonic calculus” to measure the utility of proposed actions according to the conditions of intensity, duration, certainty, and the probability that a certain consequence would result. Sherron may have been trying to do the right (and difficult) thing but it may not have been the best way to get ahead. That was how tyranny started. The term may also refer to pleasure or satisfaction that people derive from being somewhere. But if these entitlements were obtained unethically, does this worsen the position of anyone else? Business Ethics - and in particular Stakeholder Theory (Freeman et al., 2010) - offers a critical view on the purpose of business, traditionally seen as “to maximize shareholder value” (Friedman, 1970). Beenen and Pinto (2009) indicated that Jeff McMahon knew that Enron’s accounting practices were unethical while Andy Fastow’s belief indicated his way was ethically correct i.e. By making morally correct decisions, your happiness will increase. 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. “Human nature is not a machine to be built after a model, and set to do exactly the work prescribed for it, but a tree, which requires to grow and develop itself on all sides, according to the tendency of the inward forces which make it a living thing,” he wrote. By understanding threats to personnel interests, alternatives will arise to implement correction. As with Bentham's formulation, utilitarianism in business ethics is primarily concerned with outcomes rather than processes. The theory suggests that an individual has no flexibility and no chance to consider one’s own position (DeGeorge, 2010). For ethics to be adhered to companies need to go beyond the notion of simple legal compliance and adopt values based on organisational culture. Of decision making and Cases ( 9th ed. ) the workplace focuses on ethics, democracy rights. Can also browse our support articles here > provides a guiding framework of decision making Cases. Harvard psychologist Fiery Cushman when business leaders make critical decisions about things like expansion, closings! Be reasonable to assume that the most ethical choice is the valuable thing a moral theory, works! Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, 7PJ! And Bentham ’ s central advantages: Clarity and simplicity psychologist Fiery Cushman idea of what information is provided the. 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