Business Ethics ยท Moral Systems
Chapter: Utilitarianism
๐ŸŽ“ Study Guide โ€” Ethical Theories Pt. 2

Utilitarianism

The greatest good for the greatest number โ€” a practical guide to outcomes-based ethics

C ยท O ยท G ยท G Consequences ยท Outcomes ยท Greatest ยท Good
01 โ€” Foundation

What is Utilitarianism?

An ethical theory that judges the morality of an action solely by its consequences. If an action increases total happiness, it's good. If it causes harm, it's bad. Simple.

โš–๏ธ Jeremy Bentham
Founded utilitarianism. Developed the "hedonic calculus" โ€” literally measuring pleasure vs. pain.
๐Ÿ“– John Stuart Mill
Refined the theory. Argued quality of happiness matters too โ€” not just quantity.
๐Ÿง  Memory Hook โ€” "H = Aยฒ"
"Happiness = Advantage + Absence of pain"
All the synonyms in one shot:
Happiness Advantage Benefit Good Pleasure Profit Unhappiness Disadvantage Cost Evil Pain
02 โ€” The Core Principle

The Principle of Utility

Also called The Greatest Happiness Principle.

Right Action = Action that produces the most happiness
for the greatest number of people affected
๐Ÿ‘ Focus on OUTCOMES
What matters is the result of the action, not the intent or attitude behind it.
๐Ÿšซ Not about intentions
You could have good intentions but if the outcome causes harm โ†’ it's wrong.
โœ“
โœ“
โœ“
โœ“
Benefits
โš–๏ธ
โœ—
โœ—
Harms

Weigh the total benefits against the total harms across ALL affected parties

03 โ€” Two Types
Type 1

Act Utilitarianism

Evaluate each individual action on its own. Ask: "Will THIS specific act produce the most good right now?"

๐Ÿ” Judge act-by-act, case-by-case
Type 2

Rule Utilitarianism

Follow rules that, when universally followed, produce the greatest happiness overall.

๐Ÿ“‹ Judge rules, not individual acts
04 โ€” Act Utilitarianism Deep Dive

Act Utilitarianism

An act is morally acceptable if and only if its consequences produce the greatest good for the greatest number of people affected.

๐Ÿ“ Real Case Study โ€” Highway Construction
Compensate 150 homeownersโˆ’$20M
Construction costs (taxpayers)โˆ’$10M
Environmental impact (animal habitats)โˆ’$1M
Savings to drivers over 25 years+$39M
Net result+$8M (benefit wins)
โœ“ Build the highway โ€” total benefit ($39M) > total cost ($31M)
โœ… Case FOR Act Util
  • Focuses on real, practical happiness
  • Intuitive โ€” most people think this way
  • Considers everyone affected
โŒ Case AGAINST Act Util
  • Unclear who to include in calculations
  • Can justify breaking promises
  • Ignores our sense of duty/obligation
โš ๏ธ The Promise Problem โ€” Why Act Util Gets Tricky
X promised Y something โ†’ Keeping promise = 1,000 units of good for Y
Breaking promise = 1,001 units of good for Z
Act Util says: Break the promise! โ†’ But this feels wrong ๐Ÿค”
05 โ€” Rule Utilitarianism Deep Dive

Rule Utilitarianism

An action is right if it follows a rule that leads to the greatest good. The correctness of a rule is determined by how much good it brings when universally followed.

"Is it OK for everyone to do this?"
Not just: "Is it OK for me?"
โœ… Case FOR Rule Util
  • Easier to apply โ€” just follow the rule
  • No need to calculate every decision
  • Rules survive exceptional situations
  • Avoids the bias of "what's good for me"
  • Appeals to a broad cross-section of society
  • Solves the promise problem โœ“
โŒ Limitation
  • Rules may sometimes produce less good in specific edge cases
  • Requires agreement on which rules to follow
06 โ€” Side-by-Side Comparison

Act vs. Rule โ€” At a Glance

Dimension โšก Act Utilitarianism ๐Ÿ“‹ Rule Utilitarianism
Unit of evaluation Each individual act The rule behind the act
Question asked "Does THIS act produce most good?" "Does following this RULE produce most good?"
Promise scenario Break it if it gives 1 more unit of good Keep it โ€” the rule of keeping promises gives more good long-term
Bias risk Higher โ€” each decision is isolated Lower โ€” asks "is it OK for everyone?"
Ease of use Harder โ€” must calculate every time Easier โ€” just follow the established rule
07 โ€” Common Confusion: Rule Util vs. Kantianism

Both Follow Rules โ€” But Why?

Rule Utilitarianism and Kantianism both use rules, but they arrive at them very differently.

๐Ÿ“‹ Rule Utilitarian

Follows a rule because its universal adoption produces the greatest happiness.

Focus: Consequences

vs
โš–๏ธ Kantian

Follows a rule because it aligns with the Categorical Imperative โ€” treat humans as ends, never merely as means.

Focus: The will / intention

๐Ÿง  Memory Hook
"Util looks at WHERE you end up. Kant looks at WHY you're going."
08 โ€” Quick Review Flashcards

Test Yourself

๐Ÿ‘† Click any card to reveal the answer
What does "utility" mean?
The tendency of an object/action to produce happiness or prevent unhappiness for an individual or community.
Who founded utilitarianism?
Jeremy Bentham and John Stuart Mill.
What does Act Utilitarianism evaluate?
Each individual action based on whether it produces the greatest good for the greatest number affected by that specific act.
What does Rule Utilitarianism evaluate?
Rules โ€” an action is right if it follows a rule that, when universally followed, leads to the greatest good.
What is the main criticism of Act Utilitarianism?
It can justify breaking promises or duties if doing so produces even 1 more unit of good โ€” ignoring our innate sense of obligation.
How does Rule Util solve the promise problem?
The rule "keep your promises" produces more good overall when universally followed, so we keep promises even if breaking one might give slightly more good this one time.
What's the key difference between Kantianism and Rule Util?
Rule Util follows rules based on consequences (what produces most happiness). Kantianism follows rules based on the Categorical Imperative (treat humans as ends, not means).
Another name for the Principle of Utility?
The Greatest Happiness Principle.

๐Ÿ—บ Big Picture Summary

STEP 01
Identify the action
What are you considering doing?
STEP 02
Who is affected?
List all individuals/groups impacted.
STEP 03
Calculate consequences
Estimate total benefits vs. total harms for everyone.
STEP 04
Choose Act or Rule
Act: judge this act alone. Rule: does a universal rule apply?
STEP 05
Moral verdict
Net benefit โ†’ morally right. Net harm โ†’ morally wrong.