Utilitarianism is one of the most commonly and widely used d concepts in organizations. Moist organizations use the theory to ensure they make ethical decisions. Utilitarianism is a concept that strives to make sure that any action leads to the best consequences possible. In essence, utilitarianism always ensures that there are maximum positives and the negatives are to the minimum levels. It is primarily concerned with the outcomes rather than the actual process of decision making. Utilitarianism analysis is concerned with whether or not the decision made lead to the greatest good for the greatest number of people (De George, 2010). With this in mind, it is inevitable to point out that there are three conditions required to ensure practical usability of the concept in business decision making. Firstly, the cost-benefit analysis will be fundamental in this process. Furthermore, positive consequences for taking the correct decision are another essential condition for applying the concept. Thirdly, it is also necessary to have an impartial decision maker to make sure that the decisions made are fair and will ensure the best for all the involved parties.

Cost-benefit analysis is essential as it helps in evaluating the business situations from a financial perspective. Every decision made in the firm must be considerate of the business financial position as it remains the primary objective of any business organization. Positive consequences help in having the right environment from a moral perspective. As aforementioned, the utilitarianism theory is based on the principle of greatest balance of goods over harms. It is, therefore, imperative to ensure that all the consequences arising from the decision-making process provide more good than harm to the involved parties, in a moral perspective (De George, 2010).  An impartial decision maker is capable of thinking broadly and consequently makes decisions that are favorable to all stakeholders in a business that includes; employees, consumer environment, and globalization.

As aforementioned, utilitarianism is a widely used concept in making ethical decisions in a business set up. According to proponents of this theory, utilitarianism is a moral principle that asserts that a morally right course of action in any situation is the one that produces more benefits as compared to harm to all the affected parties. It is nevertheless prudent to understand that the utilitarianism theory is only concerned with the consequences and not the process followed. In essence, the theory is concerned with more good than harm regardless of whether the benefits are produced by lies, manipulation or coercion.

The cost-benefit analysis involved in utilitarianism decision making requires that business organizations assign values to the benefits and harms resulting from some actions and compare them against damages and benefits arising from other actions. This approach will be critical in the business set up as it will offer guidance to the course of action with more benefits than harm. It is, however, essential to note that this is a difficult exercise as it proves difficult to give value to some costs and benefits (De George, 2010). Furthermore, it is at times difficult to be certain for all the consequences resulting from our actions. It is, therefore, essential to note that the process can only be effective if applied together with other approaches involved in decision making.

Reference

De George, R. (2010). Business ethics (1st ed.). Upper Saddle River, N.J.: Prentice Hall.

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