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Constitutional Law
Student’s Name
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Professor’s Name
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After analyzing the various legal and ethical issues that affect businesses, I conclude that
Utilitarianism is the best ethic for a business to be both ethical and profitable.
Utilitarianism as an Ethical Framework
The ethical theory originates from Jeremy Bentham works and states that an action is
right if it results in the greatest happiness possible. This framework emphasizes the outcomes as
it pursues what is beneficial “to most people” (Komu, 2020).
Why Utilitarianism?
Outcome-Oriented: It aims to maximize the satisfaction of the affected parties while striving to
maximize profit.
Flexibility: However, Utilitarianism remains more flexible than rigid rule-based ethics, which is
helpful in the unpredictable business environment.
Long-term Success: As businesses increase overall happiness, customers, employees, and
investors will gravitate toward the positive image they establish (Dacin et al.,2022).
How Utilitarianism Guides Decision-Making
Identify Stakeholders: Identify the stakeholders involved (e.g., direct stakeholders: Employees,
customers, shareholders).
Assess Consequences: Consider possible benefits and risks for each stakeholder category.
Weigh Benefits and Harms: Compare the benefits and harms for each stakeholder group,
selecting the action with the most significant net benefit for the whole system.
Make the Decision: Choose the action that results in maximum net benefit and express it clearly
and honestly.
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Review and Reflect: Evaluate the consequences of the decision and incorporate these findings
into future choices.
Example
A company considering closing an unprofitable factory would: A company considering closing
an unprofitable factory would:
Identify Stakeholders: Workers, relatives, communities where they reside, stockholders, and
consumers.
Assess Consequences: Layoffs for employees, negative economic impact on the community,
possible improvement in the company’s profitability for shareholders.
Weigh Benefits and Harms: Shut down the factory if the benefits of the action are more
significant than the harms in the long run (for example, job stability) while minimizing the harm
through sustainable programs.
Review and Reflect: Review the overall performance of the closures and the efficacy of support
and assistance programs.
While evaluating consequences and seeking to achieve the most significant level of
happiness, Utilitarianism offers a workable and ethical approach to business choices, leading to
sustainable success and credibility in the business environment (Dacin et al.,2022).
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References
Dacin, M. T., Harrison, J. S., Hess, D., Killian, S., & Roloff, J. (2022). Business versus ethics?
Thoughts on the future of business ethics.>Journal of business ethics,>180(3), 863-877.
Komu, S. S. (2020). Pleasure versus Virtue Ethics in The Light of Aristotelians and the
Utilitarianism of John Stuart Mills and Jeremy Bentham.>Al-Milal: Journal of Religion
and Thought,>2(1), 37-56.
