Business ethics - Utilitarianism

Question 1

How can utilitarianism be misapplied to business?

Answer 1

It could be reasoned that more profit can be made by ignoring corporate social responsibility and assuming that profit will bring the greatest net happiness.

Question 2

Apply the Hedonic Calculus to Nike in the 1990s.

Answer 2

They could have decided that the extent of Happiness would be more if garments were made faster and more cheaply as more customers than employees would be happy as well as other stakeholders such as suppliers. It may lead to more duration of happiness and certainty.

Question 3

How can the Hedonic Calculus support corporate social responsibility?

Answer 3

It can lead to the greatest happiness - if social corporate responsibility results in more profit because stakeholders think they are valued and the business is loyal to them and keeps its word then they will do this.

Question 4

Give the example of M&S.

Answer 4

In the Corona-Virus outbreak, M&S gave bonus rewards to employees who came in and worked in the period. According to the Hedonic Calculus, it could be because it gives more extent of happiness making both employees and employers happy as well as customers and suppliers.

Question 5

What role does motive play in Utilitarianism?

Answer 5

It doesn’t matter if the motive is to make people happy or to make profit, as long as the outcome is good the means can justify the ends - Bentham would support this.

Question 6

Apply Mill’s higher pleasures to business ethics.

Answer 6

Higher pleasures were important - these included virtues of promise keeping, truthfulness e.g. in advertising and labelling of food products and loyalty and could be extended between businesses and their stakeholders.

Question 7

Apply Mill’s no harm principle to business ethics.

Answer 7

Rules that bring about no harm should be adhered to such as contracts between employees and business and businesses should conform to government laws that might bring these virtues.

Question 8

Which view on globalisation would Mill support?

Answer 8

Business should also show a sense of corporate social responsibility and adhere to human rights - Michael Sandel. Mill would have agreed - his stress on higher pleasures ensured that human rights are adhered to in the work place.

Question 9

What would be Singer’s view on Corporate social responsibility?

Answer 9

A business should be taking into account all the preferences of its stakeholders and trying to avoid pain for them - so globalised businesses should treat their employees in a fair and just way.

Question 10

What would Bentham argue a whistleblower should do first?

Answer 10

Try to solve the problem through the businesses own complaints procedure as this would most likely cause greatest happiness. It would solve a problem of unethical practice and make people happier without a business closing down and having bad press.

Question 11

What would be Bentham’s view on whistleblowing?

Answer 11

One must weigh up whether blowing the whistle will cause more harm than good to a business.

Question 12

Give an example of where whistleblowing would lead to net happiness.

Answer 12

Orchid Care Home - the extent of happiness would be far reaching - clients would be happier and their families would be knowing they were being treated well and society at large would be happier because we want to be able to trust what is going on in care homes.

Question 13

Give an example of where whistleblowing wouldn’t lead to net happiness.

Answer 13

Edward Snowden - could be argued that it caused more harm than good when he blew the whistle - he compromised national security.

Question 14

What would a Rule Utilitarian say about whistleblowing?

Answer 14

Be inclined to follow a rule that allowed whistleblowing as it would help the common good and retain ethical practice in business.

Question 15

Why does Utilitarianism lend itself to business?

Answer 15

It used the cost benefit analysis - when the costs of the business and this can include cost in terms of profit and non profit are weighted up against the benefits of the action

Question 16

What was the Ford Pinto example?

Answer 16

1970s’s Ford -the Pinto - small car which had the fuel tank in a dangerous position, which had led to fires in rear end collisions leading to loss of life.

Question 17

How did Ford apply the cost benefit analysis?

Answer 17

Decided that design changes would save an estimated 180 burn deaths and 180 serious injuries per year, a benefit to society of $49.6m - the cost of life lost and injuries was less than the benefit of the profit to be made - criticised for this and gained a poor reputation.

Question 18

How would net happiness apply to the Ford case?

Answer 18

If Ford Pinto had taken into account the care of its customers it would have corrected the faults of the car design and sacrificed profit in the short term.

Question 19

What is the issue with using Utilitarianism in business ethics?

Answer 19

Taking into account the happiness of all the stakeholders is time consuming and difficult and predictions are impossible to make. In that case good ethics is not good business necessarily.

Question 20

What would be the act utilitarian view of a zero hour contract?

Answer 20

It is more cost effective and allow for more flexibility in the work place and so it might be moral.

Question 21

What would be Mill’s view of a zero hour contract?

Answer 21

He might consider this an exploitation of the worker and a lower pleasure. Therefore, good ethics based on the higher pleasures which lead to human rights and less harm overall is good business.

Question 22

What does Singer argue needs to be taken into account in good business?

Answer 22

Trade offs when considering preferences of sentient beings. For example, a farmer may want to make a profit but he may consider the preferences of his animals not to feel pain and trade this off with his own preference to make a profit - leading to organic farming and free range farming.

Question 23

Apply Singer to Pepsi’s plant in India?

Answer 23

There have been complaints that the Pepsi plant has led to draughts because of water usage etc. Pepsi could trade their preference to make profit with the preferences of the locals to have water - would be ethical.

Question 24

What would be Bentham’s view on globalisation?

Answer 24

Leads to happiness for the stakeholders and shareholders - more employment at cheaper costs and more profit overall. However, it could cause more unemployment in the UK - not leading to happiness of workers and suppliers.

Question 25

What would a utilitarian argue about globalisation?

Answer 25

Does bring more happiness on the whole in a consumerist and capitalist world. More jobs are created, costs are cheaper and more profit is made as supply and demand are kept up with. This allows poorer countries to become more prosperous.

Question 26

What would a rule Utilitarian say about globalisation?

Answer 26

It is destructive and causes more harm than good. (British American tobacco etc.) Mill and Brandt would argue rules need to be in place (based on higher pleasures). Mill would not have approved based on Golden rule and no Harm principle.

Question 27

What are the strengths of Utiltiarianism on the whole?

Answer 27

Teleological and the outcomes are important - ends justify the means in ethics (Unless there are some rules as is the case for Mill)
Compassion is important
As atheists all stress is on reason rather than a set of morals from God

Question 28

What are the strengths of Bentham’s approach?

Answer 28

Relative approach so flexible
In our human nature to be happy

Question 29

What are the strengths of Mill’s approach?

Answer 29

Rules help protect minority rights but if the situation demands it they can be broke so some flexibility
Happiness is a fact - naturalists. Empirical evidence supports this view
Recognises that humans have the potential to be virtuous, fulfil their human nature as reasoned and intellectual beings. Quality of happiness is more important than quantity of Happiness

Question 30

What are the strengths of Singer’s approach?

Answer 30

All sentient beings have preferences, including animals
Your own preference should be best suited to the general welfare

Question 31

How would Dostoevsky criticise Utilitarianism?

Answer 31

People cannot cope with too much freedom

Question 32

What is the issue with a teleological approach?

Answer 32

Better to base ethics on the feature of the act itself and motive rather than on unpredictable outcomes.

Question 33

What is the issue with the Hedonic Calculus?

Answer 33

Can be tricky to work out. We can disagree about factors.

Question 34

How did Robert Nozick criticise Utilitarianism?

Answer 34

Rejects the idea that pleasure leads to human contentment. Qualities such as integrity, self worth which can lead to suffering give people more contentment.

Question 35

What does Bentham call rights?

Answer 35

“Nonsense upon stilts”

Question 36

How would Moore criticise utilitarianism?

Answer 36

Naturalistic Fallacy - cannot derive values from the way human nature is

Question 37

What is the issue with Mill?

Answer 37

Puts far too much emphasis on intellectual pleasures. Bodily pleasures and basic pleasure such as food bring happiness too. Too intellectually superior and arrogant.

Question 38

What is the issue with Singer?

Answer 38

Our own preferences are not always what everyone else wants as Singer assumes.