The moral philosophy or ethical theory of Utilitarianism introduced by
the English philosopher, Jeremy Benthem towards the end of the 18th
century, is without doubt best suited for making business decisions. In
this essay we will discuss what is Utilitarianism, in which way(s) do the
principles of utilitarianism apply to decision making and why they are best
suited for making business decisions.
The principle of Utility was first advocated by Jeremy Benthem as "Any
action that promotes happiness of an individual or lessens pain is right
while any action that increases pain or decreases happiness is wrong." The
goal of Utilitarianism was later identified by Benthem and his follower
John Stuart Mill as "providing the greatest good for the greatest numbers."
The ethical theory of utilitarianism suits business decision making to
the "T" because the utilitarian criteria is focused on the outcomes' or
consequences' rather than about how' the outcomes are achieved. This
means that the philosophy is results oriented. At the same time, focusing
on the outcome in utilitarianism does not mean that one can achieve the
objective by hook or crook.' The proviso in the theory of seeking
happiness for the greatest numbers means that adoption of unsavory
practices for selfish reasons are unethical.' At the same time, it is
widely recognized that most for-profit organizations have to operate in the
best interests of the stockholders, the organization itself (including its
employees) and the customers. Hence, any decision taken in the interest of
the "greatest number" would be the most moral decision for the organization
as well as the society at large. Such decisions would also be consistent
with the business's goals of efficiency, productivity, and high profits.[1]
Some people may disagree with this theory on the plea that it could
work against the minority interests, but ...