Application of Utilitarianism in Business

Application of Utilitarianism in Business

In my opinion, the utilitarianism principle is the most often applied in business because it focuses on consequentialism. According to Stuart Mill (2015), the result, which is the consequence, should be the most important consideration in any implemented act. In business, utilitarianism motivates individuals within the business to be responsible and act in ways that improve the business’s reputation. Business people also apply utilitarianism by adopting a mentality that only considers favoring the business by meeting the needs of the majority of stakeholders, including shareholders and any other individual affected by the business’s actions (Poff, 2018). The outcome is viewed as the determining aspect and not the intent of the actors. Most business people prefer using utilitarianism because it does not provide for mental or emotional harm (Scalet, 2018). Eggleston & Miller (2014) argue that the harm is considered to have no significance if it cannot be measured in physical terms.

During the current Covid 19 pandemic, most businesses have been forced to cut operational costs because of reduced profit margins. One of the things that most business people have considered an effective strategy for reducing operating costs is laying off some employees. This has been a tough decision because some businesses have had to lay off employees who have been loyal employees for a long time. In some organizations, employers have been forced to reduce salaries and eliminate benefits hence negatively affecting employees while benefiting the business in terms of achieving profit maximization. Business people are also applying the utilitarianism principle to increase their profit margin by looking for cheaper suppliers even though cheaper suppliers could offer low-quality products. Another general application of utilitarianism is evident in businesses that are still accommodating too many employees in the workplace and not adhering to social distancing requirements to avoid slowing down production because reduced productivity translates to reduced profitability.

References

Eggleston, B., & Miller, D. E. (2014). The Cambridge companion to utilitarianism. Cambridge University Press.

Poff, D. C. (2018). Utilitarianism. Encyclopedia of Business and Professional Ethics, 1-3.

Scalet, S. (2018). Public Goods and Utilitarianism. Markets, Ethics, and Business Ethics, 110-128.

Stuart Mill, J. (2015). What utilitarianism is? On Liberty, Utilitarianism and Other Essays. https://doi.org/10.1093/owc/9780199670802.003.0009

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Application of Utilitarianism in Business

After reviewing the concepts of utilitarianism and universalism in this unit’s reading, discuss which of these principles you think is most often applied in business. Explain your reasoning by providing examples to support your thought process.