Act Utilitarianism In Business Ethics

Business ethics are standards and obligations (Kubasek et al, 2017), with which businesses should comply but are not legally obliged to. While business ethical norms determine what is considered as good or bad business conduct they are by no means set in stone and are open to interpretation (Kubasek et al, 2017). Corporate Social Responsibility (CSR) forms part of the ethical framework that shapes business decisions. Businesses should act fairly towards their employees, the community, and the country in which they operate (Green, 2003). This leads back to the infamous Berle and Dodd debate of the 1930s. Berle believed that corporations must be managed for the benefit of their shareholders only while Dodd advocated that due to the role companies play in society, they should be managed in the public interest for the …show more content…
It judges an act based on whether the outcome thereof can be rationalized and has achieved its desired results even if the means that act of achieving such result was unethical, immoral or even illegal (Kubasek et al, 2017). Consequential theories form part of the utilitarian school of thought, one of which is Act Utilitarianism (Kubasek et al, 2017). Act Utilitarianism determines an act as morally acceptable only when the act results in the maximum of good for the greatest amount of people (Sinnott-Armstrong, 2015). It is a calculation to determine whether the action, regardless of whether it is right or wrong, brings net happiness to society (Kubasek et al, 2017).
The Humanist Theory determines whether actions are ethically acceptable or not based on their contribution to “improving inherent human capacities such as intelligence, wisdom and self-restraint” (Kubasek et al, p. 193). Doing something in contravention of the law does not advance inherent human capacities such as intelligence, wisdom, and self-restraint, therefore the act is not ethical even if the consequences are