Business Ethics. Lecture Two :: Doing Ethics Utilitarianism - The Consequences. 4BSc IT :: CT436 Sorcha Uí Chonnachtaigh
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1 Business Ethics Lecture Two :: Doing Ethics Utilitarianism - The Consequences 4BSc IT :: CT436 Sorcha Uí Chonnachtaigh
2 Overview Theoretical What is a teleological theory? Utilitarianism: Principle of Utility Concept of human nature in Utilitarianism Difficulties with Util. ethics Practical Group work - IT application Fill in PA form, remember name and student ID Discussion 2
3 Introduction: Utilitarianism Util. is a normative theory: addresses the right and wrong of human action Utilitarianism most popular late 18 th century till late 19 th century Main proponents: J. Bentham, J.S. Mill and Henry Sidgwick Teleological: from Greek word telos, meaning end/goal (ultimate purpose) Utilitarianism is a teleological theory because it aims at an end, that end being happiness Also referred to as a consequentialist theory 3
4 What is Utilitarian Theory? The creed which accepts as the foundation of morals, Utility or the Greatest Happiness Principle, holds that actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness. (J.S. Mill) Actions are judged on their consequences and the amount of pleasure/happiness derived by those involved from those consequences The goal/end = greatest happiness of the greatest number 4
5 Bentham: Concept of Human Nature Psychological Hedonism Hedonism: theory that human beings are motivated only by promotion of pleasure and avoidance of pain Nature has placed mankind under the governance of two sovereign masters, pain and pleasure. It is from them alone to point out what we ought to do, as well as what we shall do (Bentham) Ought here indicates that pleasure/pain are not just motivators but define what is morally good/bad Psychological Egoism Egoism: theory that human beings are essentially selfinterested - Bentham held true even for altruism 5
6 Concept of Human Nature & Utility Principle of Utility: what is right is that which promotes the greatest happiness Utility is not referring to the usefulness of actions but the extent to which an action promotes the good (happiness) Hedonistic util - variety of experiences = pleasure and some more contemporary utilitarians are described as pluralists because they identify other intrinsic values besides pleasure such as courage, honesty, friendship and knowledge GH Principle applies to every single action - an action which involves heroic sacrifice but fails to increase the general happiness is morally wrong 6
7 Mill s Utilitarianism Bentham: society is an artificial construct Mill: society = more meaningful Mill s concept of human nature centred on basic desire, in all persons, for unity and harmony with fellow human beings Mill placed more value in social feelings than individual interests - we naturally have human compassion, hence the desire for the GH of greatest number 7
8 Main features of Util. & Business Maximisation of the good (happiness) = maximisation of production (min. of resources) - economic efficiency Maximisation = instrumental good What is intrinsic good in Util.? That which is good in itself - happiness (Bentham & Mill) For some, happiness can be constituted in a plurality of values: friendship, health, freedom from pain, knowledge, beauty In business: profit, expansion, distribution of rewards, contribution to economy = plural values 8
9 4 Types of Utilitarianism 1. Act Util: simple and straightforward Must judge each action on its outcome/results alone. With a choice between two courses of action we are morally obliged to take the one that yields the most happiness for the most people Prob: could permit child labour 1. Rule Util: attempts to resolve the moral loop hole in act utilitarianism Must not assess individual acts but the utility of a rule for action. We should judge an act like so: if everyone were to obey this rule, would the general happiness be maximised? Prob: often means inflicting pain on those immediately involved 9
10 3. Negative Util: focused on promoting the least amount of evil (or harm) for the greatest no. Must choose actions which will cause least harm to others Prob: effective minimimalisation of pain = quickest most painless death for all humankind 4. Preference Util: defines the good to be maximised as the fulfilment of people s preferences Right action = that which produces the best consequences - best consequences are those that satisfy personal preferences Can be a variety of goods/values besides pleasure Prob: Subjectivity preferences could incl. paedophilia, fraud, homophobia, sexism, etc. 10
11 Issues in business Bluffing Act util. would allow it if it increases the happiness for the majority of people involved (numerous stockholders v. small number of deceived customers?) Rule util. may also allow it if it is an act that could be made a rule - bluffing often presumed by both businesses and customers Tax evasion Act util. may allow it, say if the funds were directed to charities Rule util. would not allow it, as the rule if applied would decrease the overall happiness of all 11
12 Potential Problems 1. Utilitarianism, generally, is based on the goal of the greatest happiness - problem is measuring happiness so you can be sure to achieve it Better to be a satisfied pig than a dissatisfied Socrates? Pleasure/happiness is neutral? The happiness of a sadist and an altruist are equal in util. 2. Calculating alternative actions and possible consequences = impractical V 12
13 Potential Problems Cont. 4. GH of greatest number places minorities at a severe disadvantage - slavery could be justified? 5. Sacrifice of some human beings is sometimes required for the sake of others - contrary to intuition that all humans have inviolable intrinsic value 6. Consequential focus of util. neglects the importance of motives and intention 13
14 Glossary of key terms Teleological: a theory which aims at an end Normative ethical theory: theory that addresses the question of which actions are right, and which are wrong Utility: the Greatest Happiness Psychological Hedonism: acting always to promote pleasure and avoid pain Psychological Egoism: acting always to promote self-interests 14
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