6.2 UTILITARIAN THEORY
The theory discusses the character of the act itself, not its effects, in distinguishing between universal moral rights and wrongs. This theory stresses on the consequences an action might have on the stakeholders. The stakeholders refer to the people who are affected directly or indirectly by the decision or action taken. Utilitarian theory considers that trade-offs occur while making a decision. It focuses on generating maximum profits or getting maximum benefits while minimizing the cost/harm to all its stakeholders. This implies that the theory is based on a simple rule: “Greatest Good for the Greatest Number.”. Volkswagen case is a classic example of violation of the said theory.
There are certain rules and policies laid by the …show more content…
17 out of the 20 were German or Austrian which shows lack of regional (international mix) diversity. An executive with U.S experience compounded Volkswagen’s problems in North America. In addition to lack of gender diversity, Germany’s corporate governance system is held back by its cliquishness. Adding on there is a plenty of directors with overlapping business interests. Focus should be made to get a board with different people with different interests and expertise in different areas so that they can collectively solve a problem and lead an organisation to new heights.
Challenging the conventional approaches and basic assumptions, members from diverse groups can help companies grow. Certain conditions have to be met to make a shift by making the most of diversity:
1. Leaders should ensure that diversity brings in results. People are able to put forth their opinion and hence there are several approaches to a problem. There should be a motivation and people are appreciated and valued for their insights.
2. Learning opportunities as well as the challenges must be encouraged and appreciated by the leaders of the
The theory discusses the character of the act itself, not its effects, in distinguishing between universal moral rights and wrongs. This theory stresses on the consequences an action might have on the stakeholders. The stakeholders refer to the people who are affected directly or indirectly by the decision or action taken. Utilitarian theory considers that trade-offs occur while making a decision. It focuses on generating maximum profits or getting maximum benefits while minimizing the cost/harm to all its stakeholders. This implies that the theory is based on a simple rule: “Greatest Good for the Greatest Number.”. Volkswagen case is a classic example of violation of the said theory.
There are certain rules and policies laid by the …show more content…
17 out of the 20 were German or Austrian which shows lack of regional (international mix) diversity. An executive with U.S experience compounded Volkswagen’s problems in North America. In addition to lack of gender diversity, Germany’s corporate governance system is held back by its cliquishness. Adding on there is a plenty of directors with overlapping business interests. Focus should be made to get a board with different people with different interests and expertise in different areas so that they can collectively solve a problem and lead an organisation to new heights.
Challenging the conventional approaches and basic assumptions, members from diverse groups can help companies grow. Certain conditions have to be met to make a shift by making the most of diversity:
1. Leaders should ensure that diversity brings in results. People are able to put forth their opinion and hence there are several approaches to a problem. There should be a motivation and people are appreciated and valued for their insights.
2. Learning opportunities as well as the challenges must be encouraged and appreciated by the leaders of the