Question

What are some examples of Utilitarianism in Accounting??

Answer 1

Utilitarianism is an ethical theory that determines right from wrong by focusing on outcomes. The belief system says that most ethical choice is the one that will produce the greater good for the greatest number. It is the only moral framework that can be used to justify military force or war. It is also the most common approach to moral reasoning.

Example

• Pricing for a product or service to different types of customers. For example, the airline industry offers first class, business class and economy class seats on many of their airplanes. Customers who fly in first or business class pay a much higher rate than those in economy seats, but they also get more amenities.
• Releasing a drug that has been governmentally approved with known side effects because the drug is able to help more people than are bothered by the minor side effects.

Limitation

The main limitation to utilitarian ethics is that it is difficult to achieve in the workplace. People are taught to focus on self before others, making it difficult to practice utilitarianism.