3 - Classical Ethical Theories

Question 1

What is the core principle of Utilitarianism?

Answer 1

Actions are ethical if they produce the greatest good for the greatest number (consequentialist ethics – outcome focused).

Question 2

What is the difference between Bentham and Mill’s Utilitarianism?

Answer 2

• Bentham: Quantitative — pleasure measured numerically (hedonic calculus).
• Mill: Qualitative — some pleasures (e.g. intellectual) are higher than others.

Question 3

How does Utilitarianism apply to business?

Answer 3

Decisions should maximise happiness or utility for the most stakeholders (e.g. consumers, employees, investors), even if some groups lose out.

Question 4

What are key critiques of Utilitarianism in business?

Answer 4

• Difficult to calculate outcomes or compare happiness.
• Can justify harmful actions to minorities.
• Focuses on consequences, not intentions or rights.

Question 5

Define Deontology (Kantian Ethics).

Answer 5

Ethics based on rules/duties. An act is ethical if it follows a universal moral law, regardless of outcome. People must always be treated as ends, not means.

Question 6

What is Kant’s Categorical Imperative?

Answer 6

1. Act only on maxims you’d will to become universal laws.
2. Treat humanity always as an end in itself, never as a means.
3. Act as if you are legislating universal moral law.

Question 7

How does Deontology apply to business?

Answer 7

Ethics means respecting stakeholder rights, honesty, fair contracts, and not exploiting others — regardless of profit.

Question 8

Criticisms of Kantian ethics in business?

Answer 8

• Rigid; may lead to impractical decisions.
• Ignores consequences.
• Doesn’t prioritise collective well-being over individual rules.

Question 9

What is Rational Self-Interest, and who are the key thinkers?

Answer 9

• Adam Smith: Individuals pursuing their own interest unintentionally promote societal good (“invisible hand”).
• Ayn Rand: Ethical egoism — moral to act in one’s rational self-interest without sacrificing self for others.

Question 10

How does Smith’s ‘invisible hand’ relate to capitalism?

Answer 10

Free markets work best when individuals act in self-interest, leading to overall economic benefit (e.g. innovation, efficiency).

Question 11

Rand’s perspective on altruism?

Answer 11

Rand rejects altruism. Helping others at one’s own expense is unethical. Ethics = rational pursuit of one’s own happiness and success.

Question 12

Benefits of Rational Self-Interest in business?

Answer 12

• Encourages competition and innovation.
• Aligns with real-world motivations.
• Foundation for free-market capitalism.

Question 13

Ethical concerns with Rational Self-Interest?

Answer 13

• Can justify greed, inequality, exploitation.
• Undermines communal responsibility and justice.
• Encourages moral relativism — what’s ethical = what’s profitable.

Question 14

How do classical ethical theories influence business ethics?

Answer 14

• Provide structured ways to evaluate corporate responsibility.
• Shape modern CSR debates (e.g. stakeholder vs shareholder theory).
• Reveal tensions between outcomes, rules, and self-interest.

Question 15

In what ways are classical ethical theories limited in business?

Answer 15

• Simplify complex moral decisions.
• Often ignore power dynamics or cultural context.
• May not account for emotion, identity, or community.