Utilitarianism and Corporate Responsiblity Flashcards
What is Adam Smiths model for Utilitarianism?
Enlightened self interest model
Sum up Adam Smiths approach
We act for the benefit of others because we will benefit ourselves
Sum up Bentham’s approach
Unless I make others happy, then society will not benefit, and I will not be happy
For Bentham and Smith, why would acting in the interest of shareholders be good?
Because this will make the most money and so will benefit all due to trickle down economics
Why is the hedonic calculus like a cost benefit analysis?
It weighs up the cost of labour, material etc against the financial return
Invisible hand
By looking after the needs of the stakeholder, the shareholder is benefitted, as, given a better working environment, employees will be more productive
What kind of utilitarianism is Mill’s?
Quantative
Why would prioritising profit be favouring the tyranny of the majority for Mill?
Because you are favouring the lower pleasure of making money over the higher pleasure of contributing positively to society
What is the danger of the consequential nature of utilitarian approach to corporate responsibility?
You have to consider the ‘the consequences for whom?’
An example which makes a consequential approach complicated?
Fast food, benefits the company if they sell a lot, however, this makes profit at the expense of societal obesity and diabetes epidemics ~ so should the business take some social responsibility?
