Consequentialist Theories in Business Ethics

Ethics and Responsibility


New Topic

Dhiraj Khatri
Student (MBA), Australia

Consequentialist Theories in Business Ethics

Most theories pertaining to Business Ethics, Corporate Governance or Corporate Responsibility are either Consequentialist or Non-consequentialist by nature.
According to this branch of corporate governance, consequences alone determine whether an option is morally correct: "The end justifies the means". Hence, according to consequentialist theories the consequences of one's conduct are the ultimate basis for any judgment about the rightness or wrongness of that conduct. It might be okay to lie or act unethically in order to generate a greater happiness. Hence, the consequences decide how a decision should be made.
Utilitarianism and Egoism are two most prominent consequentialist theories. Here is some more information on the main Theories of Consequentialism:
  • UTILITARIANISM: An action is justified if it is generating greater good for all even at any harm. An example of this might be if the cruise ship is sinking and the captain has the chance of saving a 1000 lives at the cost of two. The act is considered to be justified by Utilitarians, as it is generating greater good at the end.

  • INDIVIDUAL ETHICAL EGOISM: In individual ethical egoism, individuals always act in order to generate an output which is in their best self interest. An example of this would be an athlete taking performance enhancers in order to stay ahead of his or her competitors.

  • UNIVERSAL ETHICAL EGOISM: This theory suggests that everybody ought to act in their best interest. Furthermore, it also states that one should be concerned with others well-being to the extent that it contributes to their self interest. An example of this might be the health and welfare programmes of corporations that also have an agenda to efficiently lower sick leaves at the workplace. Hence, the corporation is serving its employees with the purpose of serving its own interest.
It is prominent from each of the theories and the examples that with consequentialist theories consequences are of paramount importance while taking a moral standpoint.
⇒ Please share you further observations, cases or experiences of consequentialism in business organizations. Thank you.

Source: Hooker, B. (2000). Ideal Code, Real World: A Rule-consequentialist Theory of Morality. Oxford University Press, Chicago.

Start a new forum topic


More on Ethics and Responsibility
Ethics and the Ego-ridden Individual
What are Accountancy Ethics?
Good Business Ethics Not Easy to be Noticed
Ethical Business Has a Long Time Horizon
When are Misdeed Committers Accepted as Advisors?
Good Example of Succeeding in CSR
Success Requires Responsibility
Integrity in Business: Definition and Issues
Organizational Justice
Consequentialist Theories in Business Ethics
Ethical Issues in Using Social Media Conversation Data for Business
Ethics in Public Administration
About 'De' (德), an Ancient Chinese Moral and Ethical Virtue
Ethical Issues in Human Resources Management
Ethics & Poor Environment
Ethics, Culture and Values
🔥Framework for Codes of Ethics for Accounting Professionals
Leadership and Integrity Does your Management Have Integrity?
Loyalty and Ethics in Business
Personal Ethics and Responsibility Must Come First
Planned Obsolescence: Ethical or Not?
Shan Zhai and the Trickster
Ethics in Dealing with Employees in Family Businesses
Ethics Change According to Time, Place, Situation
Best Practices
To study the user's Ethics in using service through the Online Social Network Sites
Why People / Organizations Act Ethically?
Professional Management Code: The MBA Oath
Female managers more ethical
Emerging of Ethics After a Chaotic State
Ethics Oath for Public Servants?
Doughnut Economics: 21st Century Economics
The Difference between Ethics and Values
Ethics & Organisational Culture
Why are Business People / Managers not Ethical?
Superiors have Different Ethics
Buying a Problematic Business
Economics with Spiritualism and Ethical Businesses are Needed
Ethics is Universal, Flavor is Regional
Is the term 'Third World' Ethical?
The Need for a Global Business Ethics and a Global Police
Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Ethics and Responsibility

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 19-4-2021. All names of their owners.