Utilitarianism In Business Ethics: Cost-Approach And Ethics

2450 Words 10 Pages
Register to read the introduction… According to utilitarianism an action will be morally right if it is for the greatest good for the greatest amount of people. Utilitarianism is a consequentialist theory; it focuses solely on consequences of an action and determines if the decision is ethical right or wrong by weighing the good results against the bad results. As this approach analyses two outcomes in one business decision then takes the outcome with the highest advantage and determines it to be ethically right it somewhat resembles cost-benefit analysis, Fritzsche (1997). Utilitarian analysis can be helpful when considering situations such as animal testing, it can be argued many human lives will be saved by testing the drugs on the animals, greatest good for the greatest amount of people. However utilitarianism does become immoral in a sense when situation such as the ford pinto case arises or the Toyota case. In each of these cases there was a fault with the car however the managers decided the amount of cars and people sacrificed is lower than the amount of people benefiting from the pleasure. Therefore the cars were distributed. Crane and Matten (2007) discuss there are some complication with the utilitarianism approach, for instance it will be difficult to assign costs and benefits to every situation such as the children as in the Toyota case. Furthermore the authors discuss by …show more content…
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