Let's begin with an overview of utility ethics. In utility ethics, it is the outcome, or the consequences, of an act that determines whether that act is a good or bad one.
Utility ethics are also referred to as "teleological" ethics, a word that is rooted in the Greek wordtelos, and which may be translated as an "end" or "purpose." Therefore, utility ethics are concerned with the ends or purposes (the outcome) of an act, and not with the act itself.
The following reading from the Seven Oaks School is a good overview of utility ethics. Read the section entitled "Utilitarianism":
Virtue ethics. (2011). Seven Oaks Philosophy. Retrieved from https://www.sevenoaksphilosophy.org/ethics/virtue.html
Next, read the following article from the Markkula Center of Applied Ethics:
Velasquez, M., Andre, C., Shanks, T., & Meyer, M. J. (2008). Ethics and virtue. Markkula Center for Applied Ethics. Retrieved from
https://www.scu.edu/ethics/practicing/decision/ethicsandvirtue.html
For purposes of the Case assignment, we will focus on the Utility Test:
Hamilton, B. (2012, June 7). Utility test. Ethics Ops. Retrieved from
https://ethicsops.com/UtilityTest.php
The Utility Test may be best understood with a review of the following examples - also from Ethics Ops. Be sure that you review both examples thoroughly, as we will be using the Utility Test in the Case assignment:
https://ethicsops.com/LessSugarMarketing.php
https://ethicsops.com/PhantomExpenses.php
Require Reading: Madsen, S., & Vance, C. (2009). Unlearned lessons from the past: An insider's view of Enron's downfall. Corporate Governance, 9(2), 216-227.
1. Choose an ethical issue raised by the Enron case study - e.g., Enron's accounting fraud, the company's reward systems, its use of "special purpose entities," or Enron's "deal making" culture.
2. Apply the Utility Test: https://ethicsops.com/UtilityTest.php
3. Be sure that you follow each step of the Utility Test (use a separate section heading for discussion of each step of the test):
A. Introduce the test.
B. Briefly discuss why utility ethics is a valid way of deciding right and wrong.
C. Apply the test
Step 1: Identify the alternative actions that are possible and the persons and groups (the stakeholders) who will be affected by these actions.
Step 2: For each of the most promising alternatives, determine the benefits and costs to each person or group affected.
Step 3: Select the action in the current situation that produces the greatest benefits over costs for all affected.
Step 4: Discuss what would happen if the action were a policy for all similar situations.
D. Draw a conclusion. If the same action is selected in Steps 3 & 4, then the action is an ethical one. If different actions are selected, decide whether the individual action will produce the greatest good and the least harm, for all affected, over the long term.
4. Be sure to use at least two sources from the library to support your discussion and analysis.
5. Be sure to cite references