Probably the Most Widely Understood and Commonly Applied Ethical Theory Is Utilitarianism. in an Organisational Context, Utilitarianism Basically States That a Decision Concerning Business Conduct Is Proper If and Only

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Probably the most widely understood and commonly applied ethical theory is utilitarianism. In an organisational context, utilitarianism basically states that a decision concerning business conduct is proper if and only if that decision produces the greatest good for the greatest number of individuals. “Good” is usually defined as the net benefits that accrue to those parties affected by the choice. Thus, most utilitarians hold the position that moral choices must be evaluated by calculating the net benefits of each available alternative action. Importantly, all the stakeholders affected by the decision should be given their just consideration. As mentioned previously, teleological theories deal with outcomes or end goals. The often-stated declaration that “the end justifies the means” is one classic expression of utilitarian thinking. Several formulations of utilitarianism exist. Their differences harken back to the original writers on the topic, the nineteenth-century philosophers Jeremy Bentham and John Stuart Mill. One major school of thought, act utilitarianism, focuses on the action that has been taken, analysing it along the lines of whether the selected action produces more good than bad consequences. For example, a pharmaceutical company may operate by the principle that it will release any officially approved drug with some side effects as long as it helps more persons combat a particular disease than the number troubled by a minor side effect. If the benefits are sufficiently great and the problems with the side effects sufficiently limited, then the action of the pharmaceutical company may be justified on act utilitarian grounds. A second formulation, rule utilitarianism, looks at whether the option or choice conforms to a rule that attempts to maximize the overall utility. Some have criticised act utilitarianism on the grounds

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