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What is utilitarianism and how does it relate to business?

What is utilitarianism and how does it relate to business?

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  • Utilitarianism is an ethical theory that promotes best actions which will maximize utility and subtract those actions that are unhealthy and can bring unhappiness or harm.
  • Utilitarianism is most commonly used approach to moral reasoning in business as it accounts for costs and benefits.
  • Businesses apply utilitarianism using four elements.

1. Consequentialism:- . businesses apply consequentialism by encouraging their Employees in earning maximum maximum profits which may lead them to use unethical means which may harm the customers.

2. Welfarism:- The businesses apply welfarism positively both the positive and negative aspects while at the same time improving their performance.

3. Individualism:- The businesses apply Individualism by taking actions that may bring them increased profits , customer satisfaction, improved Employee performance and overall success.

4. Aggregation:- Businesses apply this element of utilitarianism when they undertake activities that will maximize their profits and at the same time meet the consumer satisfaction.

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