Business ethics
Kantian
Kantian ethics is a deontological theory which focuses on whether ethical decisions per se are right or wrong regardless of their consequences. The theory was developed by a German philosopher Immanuel Kant. The theory places emphasis on the decision or action rather than being concerned with the consequences or outcomes of the action. The morality of an action is based on whether the action is right or wrong rather than its results or consequences (Aune, 2014).
Utilitarianism
According to Mill (2016), utilitarianism focuses on the outcomes or consequences which an action might have. An action is considered to be ethical if it produces the highest balance of good over harm. One has to consider the outcomes of an action before doing it. According to utilitarianism, an act is morally right if it produces the highest amount of pleasure for the greatest number of people rather than maximizing individual welfare (Scarre, 2002).
Case study
Ricardo is the chief finance officer in a company. He was voted the best employee of the year last year. He is very hardworking, disciplined, and loyal. His contributions to the company are immense. He has contributed a lot to the success of the company. Ricardo, however, uses the company’s items for his benefit. For example, he occasionally takes home a box of staples from the office. He also takes home biro pens and books and other miscellaneous items. Also, he uses the office internet to play Youtube contrary to the laws of the organization. A fellow employee has seen Ricardo do this, and he has reported the case to the senior manager. Though these acts can be seen to be minor, they ultimately lower the profits of the company. Bearing in mind the crucial role that Ricardo plays in the success of the company, what is the best decision that the manager should take, fire him, or spare him?
In the above case study, Kantian ethics would mean that Ricardo is fired because his actions per se are wrong. A deontologist where Kantian ethics is based would argue that Ricardo should be fired because his actions are morally wrong. A deontologist will not consider the consequences of Ricardo being fired and how it will affect the company. According to Kantian ethics, actions are not justified by their results. In this case, the means justify the end, and thus Ricardo’s actions are wrong; he should be fired.
Utilitarianism, on the other, would argue in favor of Ricardo. A utilitarian would consider the consequences of firing Ricardo. Since Ricardo has brought a lot of success to the company, firing him would mean the company would lose a lot and possibly incur loses. Therefore a utilitarian would suggest that Ricardo not be fired. Since utilitarianism focuses on the outcomes of a moral act, it would be wrong to fire Ricardo because he has made the company proud, and everyone is happy about it. Maintaining the services of Ricardo produces the greatest amount of pleasure to the greatest number of people (stakeholders, employees, customers), and therefore firing him is morally wrong. His benefits of staying exceed the cost of existing. In utilitarianism, the end justifies the means. A utilitarian would do simple mathematics of the cost-benefit analysis. Comparing the small items that Ricardo carries home with the enormous profits he brings to the company, the teleontologist will conclude that Ricardo should not be fired.