In Teleological Theories of business ethics, principle of utilitarianism consists which of following elements?

The correct answer is All of the above.

Key Points

• Teleological Theories:
• According to teleological theories, the Tightness of an action is determined solely by its consequences rather than by any feature of the action itself. Actions that result in the greatest possible balance of good or evil are considered ethical. Thus, teleological theories are based on the concept of goodness.
• Now the question is which is good and what is evil. In classical utilitarianism, pleasure is regarded as good, and pain is considered evil. In broader terms, goodness is human well-being.
• Bentham and Mill explained the doctrine of utilitarianism:
• The Principle of Utility:
• Jeremy Bentham (1748-1832) explains this principle as follows:
• By the principle of utility is meant that principle which approves or disapproves of every action whatsoever, according to the tendency which it appears to have to augment or diminish the happiness of the party whose interest is in question or, what is the same thing, in other words, to promote or to oppose that happiness.”
• Thus, the consequences of an action are measured in terms of the pleasure and pain caused to different individuals. Bentham suggested a procedure called hedonistic calculus for this purpose.
• Bentham’s theory is criticized for two reasons. First, it is not always possible to measure in quantities the pleasure and pain caused by an action. Second, pleasure does not constitute human well-being. Even pigs are capable of pleasure and his theory is criticized as a ‘pig philosophy’ fit only for swine.
• According to critics, one absurd consequence of Bentham’s principle is that it would be better to live the life of a satisfied pig than that of a dissatisfied human being such as Socrates. For human beings, friendship and aesthetic enjoyment are as good as pleasure.
• The Principle of Utilitarianism:
• John Stuart Mill (1806-1873) modified the principle of utility by recognizing that pleasures differ in their quality which is as important as the quantity of pleasure. Mill concluded, “It is better to be a human being dissatisfied than a pig satisfied; better to be Socrates dissatisfied than a fool satisfied. And if the fools, or the pig, are of a different opinion, it is because they know only their side of the question.
• Thus, there are two forms of utilitarianism:
• 1. Action utilitarianism under which an action is right if and only if it produces the greatest balance of pleasure over pain for everyone. For example, telling a lie or breaking a promise is right if its consequences are better than those of any alternative course of action. Thus, classical utilitarianism does not require observing rules such as “Tell the Truth.
• 2. Rule Utilitarianism under which an action is right if and only if it conforms to generally accepted rules and produces the greatest balance of pleasure over pain.
• Act utilitarianism is simple and easily understood. But rule utilitarianism is morally more sound and does not require calculating the consequences of each action.
• The principle of utilitarianism consists of the following elements:
• Consequentialism- The Tightness of any action depends solely on its consequences.
• Hedonism- Pleasure alone is good.
• Maximization- A right action creates the greatest amount of net pleasure.
• Universalism- Everyone’s consequences are alike.
• Advantages of Teleological Theories:
• Teleological theories are consistent with ordinary moral reasoning. Utilitarianism why telling the truth, keeping a promise, and other acts which provide some benefit are morally relevant.
• Teleological theories provide an objective and precise method for moral decision-making. A decision-maker can choose the right course of action by calculating and comparing the consequences of different alternatives.
• Economists assume that people seek to maximize their utility or welfare. The economic theory is based on the ethical theory of utilitarianism.