The Importance Of Utilitarianism In Business

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Richard T. DeGeorge defines utilitarianism as, “an ethical theory that holds that an action is right if it produces, or if it tends to produce, the greatest amount of good for the greatest number of people affected by the action. Otherwise the action is wrong.” (p. 44). In business, individuals and corporations are faced with many actions or decisions that affect other people and employees. These decisions can be very complicated and can become a “double edged sword” situation for the individual making the decision. This essay will analyze what is required to apply utilitarianism in business.
Most businesses are in business to make a profit. DeGeorge writes, “Because the aim of a business is to make money, those actions that tend to help it
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According to DeGeorge, “we can evaluate certain business practices on the basis of their consequences. If they tend to produce more bad than good, they are immoral. If the harm done to society by these practices is sufficiently serious, then legislation might be passed, subjecting the action to legal as well as moral sanctions.” (p. 49). Although the coal mine does create many “good” consequences for society it can create a nightmare for those people who live near the mine. For example, the Surface Mining Control and Reclamation Act (1977) was passed to ensure the mines protected the surrounding environment and restored the mines to beneficial uses after mining is …show more content…
While trying to become as profitable as possible corporations can face countless moral issues that affect their employees and the citizens where they conduct business. If decision makers use this approach to analyze future actions to take within the company in theory they will do the greatest amount of good. According to Richard DE George, “Utilitarianism, far from being a self-serving approach to moral issues, demands careful, objective, and impartial evaluation of consequences.” (p. 59). The evaluation process of this approach can be very tedious, but by using this approach actions taken will be well thought out and planned. Utilitarianism is a powerful moral decision making tool and it is well worth perfecting and implementing in

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