What Is Utilitarianism?

Utilitarianism is a theory of morality that advocates actions that foster happiness or pleasure and
oppose actions that cause unhappiness or harm. When directed toward making social,
economic, or political decisions, a utilitarian philosophy would aim for the betterment of society
as a whole.

The 3 Generally Accepted Principles of Utilitarianism :-

1)Pleasure, or happiness, is the only thing that has intrinsic value. To say that something has
intrinsic value means that it is simply good in itself. Intrinsic value contrasts with instrumental
value. Something has instrumental value when it is a means to some end.

2)Actions are right if they promote happiness, and wrong if they promote unhappiness.
This principle is quite controversial since it involves that the moral quality of an action is decided
by the size of its consequences. So long as an action produces maximum benefits for the
greatest number of people, utilitarianism does not care whether the results are driven by
immoral motives. However, this principle can be refuted since most people would agree that the
moral quality of an action depends on the motive or intention behind it.

3)Everyone’s happiness counts equally. Although this axiom may seem quite obvious, this
principle of equality was radical and progressive in Bentham’s time. By then, it was commonly
accepted that some lives and some people’s happiness were simply more important and
valuable than others. Betham’s principle of equality makes the government responsible for
creating policies that would benefit all equally, not just the elite.

Utilitarianism Concept :-

Utilitarianism is a theory of morality that advocates actions that foster happiness and oppose
actions that cause unhappiness.
Utilitarianism promotes "the greatest amount of good for the greatest number of people."
When used in a sociopolitical construct, utilitarian ethics aims for the betterment of society as a
whole.
Utilitarianism is a reason-based approach to determining right and wrong, but it has limitations.
Utilitarianism does not account for things like feelings and emotions, culture, or justice.

Quantitative Utilitarianism
Quantitative utilitarianism, or Benthamite utilitarianism, is a branch of utilitarianism that was
developed out of the work of Jeremy Bentham (1747-1832) – an English philosopher,
economist, political scientist, legal scholar, and social reformer. Quantitative utilitarianism is
concerned with aggregate utility maximization (i.e., maximizing the overall happiness of
everyone) and uses a hedonic calculus to determine the rightness or wrongness of actions.
Bentham’s fundamental axiom states that, “It is the greatest happiness of the greatest number
that is the measure of right and wrong.” The concept of hedonic calculus (also known as felicific
calculus) was developed by Bentham in his 1789 text, “Introduction to the Principles of Morals
and Legislation.”

According to quantitative utilitarianism, every action results in some amount of “pleasure” and
some amount of “pain” for an individual. Hedonic calculus aggregates the individual “pleasures”
and “pains” on the basis of their intensity, duration, certainty, propinquity, fecundity, purity, and
extent.

Qualitative Utilitarianism
Qualitative utilitarianism is a branch of utilitarianism that arose from the work of John Stuart Mill
(1806-1873) – an English philosopher, civil servant, and politician. Qualitative utilitarianism
rejected hedonic calculus and categorized “pleasures” and “pains” in a more qualitative manner.

Mill argued that certain “pleasures” and “pains” were of greater consequence than others, even
if there was no quantifiable proof of their increased importance. He argued that “higher
pleasures” could only be recognized by those who have experienced them.

Criticism of Utilitarianism

1. Human happiness is impossible to quantify

This is one of the primary criticisms of quantitative utilitarianism. Human perception of the same
experience varies greatly among individuals. That fact does not allow for a consistent
quantifying process. In addition, all ethical systems stemming from consequentialism (the belief
that actions are judged on the basis of their consequences) are limited by the ability to guess at
the future consequences of present actions.

2. Aggregate measures of happiness ignore distributional aspects

Consider three actions: X, Y, and Z. The effect of each of the actions on five individuals is given
below:

Aggregate Measures of Happiness

Utilitarianism would prefer action Z over actions X and Y. In addition, actions X and Y would be
considered equal because they yield the same level of aggregate happiness.

3. The motives behind actions are ignored

Consider two individuals, A and B, who donate $100 and $1,000, respectively, to a charity.
Suppose individual A donated the money because he wanted to help the charity and individual
B made the donation so that he could improve his own standing in society. Utilitarianism would
consider individual B’s donation to be superior to individual A’s donation, despite the fact that it
was made with ulterior, and less noble, motives.
Impact of Utilitarianism In Business and Commerce
Utilitarianism holds that the most ethical choice is the one that will produce the greatest good for
the greatest number. As such, it is the only moral framework that can justify military force or
war. Moreover, utilitarianism is the most common approach to business ethics because of the
way that it accounts for costs and benefits.
The theory asserts that there are two types of utilitarian ethics practiced in the business world,
"rule" utilitarianism and "act" utilitarianism.

The CEO’s Role In Nurturing And Shaping Culture

Posted on May 18, 2020in Artists0 Comments
Every employee in an organisation has a role in creating culture. Culture is something that
needs to be consciously nurtured and shaped. Albeit the CEO is one person, they set the tone
for the type of organisational culture whether they do it intentionally or not. The decisions they
make, their habits, what they focus on, their behaviours all provide guidance for others to follow
suit. If the CEO’s behaviour contradicts the values in the organisation, it very quickly tells
employees that the values are in fact irrelevant. How the CEO engages in all aspects of the
company culture can influence how people feel and how they perform.

When the purpose, vision and culture are aligned and in sync, the company is much more likely
to deliver consistent and profitable growth. Employees are energized, engaged and motivated
to do their best work. They take pride in working for the organization and are brand advocates.
In contrast when a culture is misaligned to the strategic direction of a company, it is much more
likely that the organisation performance is impacted, the energy is low, employees are less
engaged and are probably brand detractors.

The responsibility of organisation culture cannot be delegated. To consciously shape culture in

a meaningful way, it needs to be a strategic priority driven by the CEO. It requires leaders at
the top being fully committed and aligned and it should regularly feature at Board discussions.

No alt text provided for this image

There are a few essential ingredients for CEO’s to attend to if they are serious about shaping
culture:

1. Be clear on the organisation purpose. Purpose isn’t simply what the business does, it
addresses the ‘why’. It’s at the intersection of two fundamental questions: ‘Who are we?’ and
‘What need do we fulfil in society?’ It defines the reason for existing, it provides clarity and
focus that emotively connects customers and employees to the organisation.

2. Articulate the desired culture. Although culture is an intangible aspect of organisation life,
taking the time to understand it and knowing how it needs to be reshaped to ‘live and breathe’
the purpose and vision of the organisation is a quantum leap in the right direction.
3. Engage leaders and employees in understanding and shaping the culture. If time is taken
to engage employees, they are more likely to own it and take care of it. Everything from
onboarding, communications, development and engagement of the employee should reflect the
desired culture.

4. Define and embed the values and behaviours that bring the culture alive. The values need
to be unique and meaningful to the organisation. The less bland and the more connected to the
direction of the organisation, the more likely that they will stick and guide decision making.

5. Determine the priorities to shape the culture. Attend to these, track measurable progress.

6. Bring the culture alive through story telling. Every day examples of the culture in action
reinforces what is valued and recognised in the organisation. Use both formal and informal
networks to spread the word on the culture you want to shape.

7. And finally, be persistent, patient, push through obstacles and overcome resistors.

Culture change can often take 5+ years, yet the CEO tenure can very often be shorter, leaving
employees feeling that the culture initiative is ‘a project’ that will pass. Boards can safeguard
against this by making sure there is continuity with the incoming CEO and that they will continue
the journey of nurturing and shaping a purposeful culture.

Culture is fundamental to organization success. Purpose is the driver of culture, and culture is
the driver of organization outcomes, including the long-term success of the CEO. Establishing a
purposeful culture is the primary vehicle for any CEO to safeguard the long-term health and
success of an organization and what better way to leave a legacy behind.

Ethical Leadership:-

Ethical leadership is defined as “leadership demonstrating and promoting ‘normatively

appropriate conduct through personal actions and interpersonal relations’.” When you boil it
down, this really means that ethical leadership is defined as putting people into management
and leadership positions who will promote and be an example of appropriate, ethical conduct in
their actions and relationships in the workplace.

In the business world today, ethics are an increasingly important element and point of
discussion. So leadership with ethics is very important to understand, to develop, and to
recognize in the business world. If you want to become a business leader, learning about ethical
leadership is crucial to help you get there. It's your responsibility to model moral behavior in the
workplace when you're in a position of power in an organization. Integrity, moral behavior, and
ethics are key to being a great leader.

Learn about the value of ethical leadership, how to become an ethical leader, and see examples
of leadership with ethics around us in the business world today.
The importance of ethical leadership:-
Leadership that is ethical is important for a variety of reasons, for customers, employees, and
the company as a whole. Leadership skills are crucial to help create a positive ethical culture in
a company. Leaders can help investors feel that the organization is a good, trustworthy one.
Customers are more likely to feel loyal when they see leaders in place in an organization. Good
press is likely to come when there are ethical leaders in an organization. Partners and vendors
will similarly feel they can trust and work well with an organization when they see leadership that
is ethical displayed.

In the short-term, ethical leaders can help boost employee morale and help them feel excited
about their management and their work. It can increase positivity and collaboration in your
organization and make everyone feel happier to be at work.

In the long-term, ethical leadership can prevent company scandals, ethical dilemmas, and
ethical issues. It can also help organizations gain more partnerships and customers, which can
lead to more money at the end of the day. Loyal employees are also a crucial element of long-
term success for a business.

At the end of the day, Leadership with ethics and ethical principles have major short-term and
long-term benefits for organizations and individuals alike.

What is ethical leadership?

Leader at whiteboard in board room teaching two women on laptop
Ethical leadership is defined as “leadership demonstrating and promoting ‘normatively
appropriate conduct through personal actions and interpersonal relations’.” When you boil it
down, this really means that ethical leadership is defined as putting people into management
and leadership positions who will promote and be an example of appropriate, ethical conduct in
their actions and relationships in the workplace.

In the business world today, ethics are an increasingly important element and point of
discussion. So leadership with ethics is very important to understand, to develop, and to
recognize in the business world. If you want to become a business leader, learning about ethical
leadership is crucial to help you get there. It's your responsibility to model moral behavior in the
workplace when you're in a position of power in an organization. Integrity, moral behavior, and
ethics are key to being a great leader.

Learn about the value of ethical leadership, how to become an ethical leader, and see examples
of leadership with ethics around us in the business world today.

The importance of ethical leadership.

Leadership that is ethical is important for a variety of reasons, for customers, employees, and
the company as a whole. Leadership skills are crucial to help create a positive ethical culture in
a company. Leaders can help investors feel that the organization is a good, trustworthy one.
Customers are more likely to feel loyal when they see leaders in place in an organization. Good
press is likely to come when there are ethical leaders in an organization. Partners and vendors
will similarly feel they can trust and work well with an organization when they see leadership that
is ethical displayed.

In the short-term, ethical leaders can help boost employee morale and help them feel excited
about their management and their work. It can increase positivity and collaboration in your
organization and make everyone feel happier to be at work.

In the long-term, ethical leadership can prevent company scandals, ethical dilemmas, and
ethical issues. It can also help organizations gain more partnerships and customers, which can
lead to more money at the end of the day. Loyal employees are also a crucial element of long-
term success for a business.

At the end of the day, Leadership with ethics and ethical principles have major short-term and
long-term benefits for organizations and individuals alike.

A professional stands in front of a group of her colleagues during a meeting.

The traits of ethical leaders.
There isn’t just one correct way to lead ethically. However, there are some basic elements that
are fairly consistent among ethical leaders. Behaving in an ethical manner takes consideration
and thought. Developing these traits will help you start on the journey to become an ethical
leader.

Leads by example. Ethical leaders should have the same expectations for themselves as for
those that work for them. Ethical leaders help their employees with daily tasks, so they have an
in-depth understanding of what the other workers do and the challenges that can come with
their work. These leaders are then able to guide employees as they do their daily tasks. Ethical
leaders also show how to be ethical and moral in their own work, which is a crucial example to
other employees. When employees see that their leaders are constantly making decisions with
integrity and honesty in mind, they are also willing to make those ethical considerations in their
work.

Willing to evolve. Good leaders need to be able to evolve and adapt to the changes that are
sure to come in the business world. As businesses expands, get bought out, merge, and more,
adaptability is key for success. Good organizational leaders are willing to take the changes that
are coming and meet them head on. This helps encourage employees to be adaptable and
evolve with changes as well. Whatever comes for a business, leaders can help steer the ship in
a positive and ethical way.
Respects everyone equally. Respect is a vital element of ethical responsibility. Leaders that are
ethical will respect everyone, from their superiors to their employees, equally. Not showing
respect to the people around you can quickly create a negative or hostile work environment. It’s
a sure way to lose trust and create issues inside your organization. Not showing the same level
of respect can make people think they’re being treated unfairly, and can cause even more
problems in the workplace.

Communicates openly. Leaders who have ethics need to excel at communication to make sure
their organization is a place of trust and honesty. Without communication, issues can go
undetected for a long time. This can create hostility and distrust in your organization. Leaders
who have ethical behavior focus on having good communication that is honest and open with
every single person in their organization.

Manages stress effectively. Leaders and managers are faced with stressful situations every day,
both in their work life and their personal life. It’s not acceptable to take out your personal or even
your professional stress on your workers. This is taking advantage of a power dynamic and can
create anger, frustration, or fear in your employees. Leaders who have ethics know how to
handle their stress in a productive and positive way. Regular outbursts aren’t acceptable and
will make your other workers feel stressed as well. Good leaders who practice ethical behavior
find ways to deal with their stress, and encourage their employees to improve if needed, in
positive, helpful ways.

Mediates fairly. A moral leader is an expert in solving problems in a way that is fair to everyone
involved. They consider all the opinions and people involved in order to be fair and impartial.
Good organizational leaders are compassionate and kind when helping solve problems and
issues. They want to make sure everyone can continue to work together well after the disputes
are resolved, and are focused on positive interactions moving forward. Employees will trust
leaders who practice ethics who they know will listen and care about them.