Applying Utilitarianism to Business Discussion

 
After working through all of the content for this week and watching the video above we are going to take a
moment to reflect on the ways that this principle might apply in the business world.
1. According to the presenter we now live in a world where 1 out of 7 companies commit fraud every year. This
fraud costs shareholders…but also society. Based on his opening and the quote that fraud can be considered a
feature not a bug in financial services, comment on how you personally view the importance of ethics in the
business world. Is doing the right thing important when you are in a competitive business environment?
2. Given the two visions of ethical motivation, Adam Smith’s version of economic Utilitarianism which values
the benefits relative to the costs for justifying moral behavior, how might this type of thinking find its way into
business decision making? What are the pros and cons of this type of philosophy for business? Why might it
be important to understand this philosophy if you are in a management position?
3. Based on the results of the coin experiment and the philosophy of Immanual Kant on intrinsic motivation,
how might you manage a business differently than if you strictly adhered to the incentive based philosophy of
Adam Smith? How might your view of your employees differ?