John Stuart Mill Utilitarianism

Muhammad Umer

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Business Ethics Midterm

Question 1:

Define the terms:

Answer:

1) Capitalism

Capitalism is known as the “free market economy”. It is an economic system that has a private ownership on the sources of production, production of goods or services for generating profit or income. A group of large investors in the market invests and control the major or rules the system. This investment is called the capital. United States of America and many other countries are having capitalism as their economic system. Besides, USA has not fully capitalism, it is sort of mixed, but the capitalism is dominant.

Example:

Medical in USA is controlled privately, whereas in Canada, the medical is controlled by the Government whether provincial

According to this theory, an action is said to be good if they result of action leads to happiness and vice versa.

Mill explaining the purpose of this theory is to provide support for the value of utilitarianism as a moral theory, and to respond to misconceptions about it. Utilitarianism is a theory based on the principle that "actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness."

Mill defines happiness as pleasure and the absence of pain. He argues at a point while explaining his theory that pleasure can differ in both quality and quantity. Pleasures that are rooted in one's higher faculties should be weighted more heavily than baser pleasures. This law does not confine into the law of marginal utility but works parallel.

Example:

Reward is an example of utilitarianism. Employees according to their performances are rewarded in the form of wager or bonus. This helps in building a confidence in employees and job satisfaction.

5) Kantian

The profit comes in the form of higher stock prices. This results in attracting more customers or partnerships with green organizations just because creating a green impression in the society upon the environment. Cratering these temporary techniques regarding environment are unhygienic, short-term relation, and profit. Both capitalism and a green-focused approach to business aren’t mutually sustainable. The work inversely proportional due to which company’s policies are not consumer friendly and much of their policies are to increase and generate profit from the market. There is a huge investment on a sector which provides a consultation in using low cost of production and increasing the