MANAGEMENT 6

PRIMA, RIZELLE R. BSA3-A

MIDTERM

ETHICAL EGOISM
Ethical egoism is the promotion of one’s own good is in accordance with morality. It claims
that I morally ought to perform some action if and only if, and because, performing that action
maximizes my self-interest. Ethical egoism is often equated with selfishness, the disregard of
others’ interests in favor of one’s own interests. However, ethical egoism cannot be coherently
equated with selfishness because it is often in one’s self-interest to help others or to refrain from
harming them. There are situations many where promoting self-interest do not affect other people
in a negative way. For example, in business, the promotion of self-interest, especially on the part
of the employees is sometimes preferred over the interest of the organization, for instance, a
neophyte employee is performing his job diligently for fear that infractions of his duties may lead
to dismissal and eventually the loss of his job. This tells us that loving one’s own self or being
self-interested is not always and not as bad as people may think. It only becomes bad when other
people are being affected with the acts of being self-interested in a negative way.
The immediate attraction of ethical egoism within the field of business ethics seems to be
that ethical egoism focuses on what is in the company’s best interest. Companies focusing solely
on profit maximization seem thus to be acting in accordance with ethical egoism. In business
decision making, sometimes self-interest s considered and given priority over and above the
interest of others, for example, saving the company from bankruptcy by laying off or terminating
employees.
Ethical egoism encourages self-awareness. This is important in business, especially for
business leaders and managers. Self-awareness enhances leadership capabilities so that capacity
for accomplishments becomes higher. Productivity would rise in the business when ethical egoism
is in control. Ethical egoism suggests that when individuals pursue gratification of their insatiable
desires single-mindedly in the business, then they unintentionally benefit the organization as a
whole. It is as if the organization is led by an invisible hand.