BSN550 – Responsible Enterprise
Tutorial 3: Consequentialism
Jill Lovell
jill.lovell@qut.edu.au
CRICOS No.00213J
CRICOS No.00213J
Objectives for Week 3
• Consequentialism
• Ethical egoism
• Altruism
• Utilitarianism
• Business ethics
• Modern Slavery
CRICOS No.00213J
Week Module Topic Assessment
Introduction to Responsible Enterprise
Week 1 Introduction
Week 2
Ethics as Rules / Duty [Deontology] Why do we
think
Introduction to Ethical Ethics as Consequences [Teleology] something is
Week 3
Frameworks
ethical
Ethics as Virtue and Values [Axiology]
Week 4 Asessment 1 due
Systems Thinking and Dynamics
Week 5
Week 6
Mapping Complex Systems How wrong
Systems thinking and ethics things happen,
Analysing and influencing systems
Week 7 and how to
Systems and Ethics address them
Week 8 Assessment 2 due
Scenario planning and uncertainty
Week 9
Evaluating scenarios What can
Week 10
Scenario Planning and ethics Scenario planning and ethics
organisations
Week 11 do about
Aligning personal values, organisational ethical issues
Week 12 responses and system dynamics
Reflections and wrapping up
CRICOS No.00213J
Week 13 Wrap Up and Review Assessment 3 due
Three approaches to ethics
Deontology
Week 2
[Rules / Duty / Rights]
Ethical
Theory
Virtues and Values Consequentialism
Week 4 Week 3
[Character] [Outcomes]
CRICOS No.00213J
Consequentialism
Outcomes based Focus is on the
approach results of what
you do (the ends)
not what you do
to ethics
CRICOS No.00213J
Consequentialist Ethics
• Directed towards a particular end, or outcome; only concerned with
consequences not ways and means, rules, principles or duty.
• Also called teleological ethics.
• GR: teleos: - afar – ends
CRICOS No.00213J
Different Approaches to Consequentialism
Indigenous value:
Relationship,
Consequentialism Reciprocity
Ethical
Egoism Altruism Utilitarianism
Good of oneself Good of others Good of as many
as possible
CRICOS No.00213J
Ethical egoism
CRICOS No.00213J
Ethical Egoism
What is egoism?
Egoism is the theory that, whatever we may claim, we
actually do only those things that we believe will benefit
We are morally ourselves.
obliged to act
in our own self
interest What is ethical egoism?
Ethical Egoism is the moral sanction for that approach
namely that everyone should pursue their own self-interest.
(Thompson Ethics p63)
Do what is best for yourself, what brings you the most pleasure.
CRICOS No.00213J
What does it look like to “be your best self”?
Do we have a “duty to be selfish” like Ayn Rand
states?
CRICOS No.00213J
Arguments against ethical egoism
• Prioritises one individual over all others.
• Can justify acts which would otherwise be considered unethical.
• Morality is seen as utterly subjective.
CRICOS No.00213J
Altruism
CRICOS No.00213J
Altruism defined
Comte and George Lewes
Lewes introduced the word ‘altruism’ into the English language in 1853 with his
translation of Comte's Philosophy of the Sciences.
The Oxford English Dictionary defines altruism as:
Devotion to the welfare of others, regard for others, as a
principle of action; opposed to egoism or selfishness.
George Lewes, Comte's Philosophy of the Sciences (George Lewes trans, 1890 ed);
J.A Simpson and E.S.C Weiner, The Oxford English Dictionary (2nd ed, 1989).
CRICOS No.00213J
Altruism
• Can you think of any of examples of acts of altruism
that you have witnessed?
• Is it possible to do something that is purely just for the
best of others?
• What about when what’s best for others has negative
consequences for you?
CRICOS No.00213J
Arguments against altruism
• Many would argue that you always receive some benefit (tax deduction, warm
inner glow, better afterlife) if you give to others.
• It can be very difficult to determine motive.
CRICOS No.00213J
Utilitarianism
“The greatest good for the greatest number”
CRICOS No.00213J
Jeremy Bentham (1748 - 1832)
“It is the greatest happiness of the
greatest number that is the measure
of right and wrong.”
CRICOS No.00213J
Basis of Utilitarianism
• Thought leaders are Jeremy Bentham and John Stuart Mill (19th Century).
• Utilitarianism took the search for individual happiness and relocated it in the
context of the whole community.
• Analyses the consequences for different actions for everyone affected by those
actions – for good of all persons.
• Then compares alternative actions – and works out which would create the most
overall happiness (preferences).
• Uses hedonic calculus.
What is “happiness”? What is “the good”?
CRICOS No.00213J
Hedonic Calculus
To a person considered by himself, the value of a pleasure or a pain considered by itself,
will be greater or less, according to the following circumstances:
• Its intensity;
• Its duration;
• Its certainty or uncertainty;
• Its propinquity or remoteness;
• Its fecundity, or the chance it has of being followed by, sensations of the same kind;
• Its purity, or the chance it has of not being followed by, sensations of the opposite kind;
• Its extent; that is, the number of persons to whom it extends.
CRICOS No.00213J
Challenges with utilitarianism
What do you see as some of the challenges of this ethical
approach?
What was interesting to you from the reading this week?
Gustafson, A. (2013). In Defense of a Utilitarian Business Ethic. Business and
Society Review, 118(3), 325-360. https://doi.org/10.1111/basr.12013
CRICOS No.00213J
Summary
Ethical Egoism: moral agents ought to bring about the best
consequences for themselves.
Ethical Altruism: moral agents ought to bring about the best
consequences for others.
Utilitarianism: moral agents ought to bring about the best
consequences across the board.
CRICOS No.00213J
Moral agents - Business ethics
How does Consequentialism apply in a business
context?
Ethical Egoism: moral agents ought to bring about the best consequences for themselves.
Ethical Altruism: moral agents ought to bring about the best consequences for others.
Utilitarianism: moral agents ought to bring about the best consequences across the board (for
the majority).
CRICOS No.00213J
Assume that it is legal to
– Ford Pinto Case
Example 1 manufacture a vehicle with
known design flaws
• You produce a cheap motor vehicle and it is very popular.
• You find a design fault which could cause the vehicle to catch fire. There is a solution to
the problem but it is expensive.
• You ask the US Government to estimate the cost to society for each potential death
of individual which came in at $10,000.
• What would you do? Consider the three different consequentialist approaches.
Option A - keep selling Option B – rectify problem
Potential cost to society 180 deaths / 180 burn Replace faulty products in
(recompense) victims replacement cars thousands of cars
Potential Cost to company $49.5 million $137 million
https://peped.org/philosophicalinvestigations/utilitarianism-and-business-ford-pinto-case/
CRICOS No.00213J
What
Example 2 – Hypothetical would you
do?
• The government decides to implement a new regulation making it illegal to use a
certain chemical due to health concerns.
• A cost benefit analysis is undertaken which shows that the benefits to society
(including overall cost to the health system) would be $150 million per annum.
• A local town which is the location of the factory which makes the chemical would
be hard hit with the closure of a business and resulting loss of jobs. It is
estimated there would be a loss of $50 million to the company and $40 million to
employees and community.
• What would you do?
• After the law is implemented a mistake in the calculations is found and the
cost to the town and company was actually $190 million.
CRICOS No.00213J
Modern Slavery &
Consequentialism
CRICOS No.00213J
Modern Slavery
What are some of the consequences
of Modern Slavery?
Consequences for individuals?
Groups? Businesses? Communities?
CRICOS No.00213J
Modern Slavery
How would someone explain that Modern Slavery is
ethical or unethical from the consequentialist
approaches?
Ethical Egoism: moral agents ought to bring about the best consequences for themselves.
Ethical Altruism: moral agents ought to bring about the best consequences for others.
Utilitarianism: moral agents ought to bring about the best consequences across the board.
CRICOS No.00213J
Strengths and Critiques of
Consequentialism
It is a clear and simple All we need to do is work
rule which applies to out how to maximise the
everyone and is fair in good outcomes for the
that sense. most people.
It is very difficult to Another difficulty is that
consider all possible the ends justifies the
consequences. means.
https://ethics.org.au/ethics-explainer-consequentialism/
CRICOS No.00213J
Application to Modern Slavery
You are a company looking at your supply chain in compliance with the Modern
Slavery Act. You are aware that some of your suppliers have not provided you with
the information you need to ensure that you meet your obligations under the Act.
However, they are the only suppliers of that product at a reasonable price.
From a utilitarian perspective – is it better to risk:
a) Potential reputational damage in keeping the supplier?
or
b) Disruption to your operations (and profits) in trying to replace the supplier?
or
c) Potential loss of supplier by conducting a forensic audit of their operations?
CRICOS No.00213J
Application to Modern Slavery
• You run a factory in a developing country and are interviewing for new
employees.
• An applicant comes in who is very small. You ask the age and find out that they
are only 11 years old. You find out that their parents have both died and the child
is the oldest of 4 siblings.
• Is it ethical to employ the child?
• Consider this from a deontological perspective and consequentialist
perspectives.
CRICOS No.00213J
Deontology vs Teleology
Where do you stand?
Deontology Consequentialism
Rights /
Duty
Justice
Ethical
Egoism Altruism Utilitarianism
Various
Religious /
Responsibility Relationships sources of
Spiritual
rules
In the culture you are from, are there ethical approaches that are more
prominent than others?
CRICOS No.00213J
Assessment 1
CRICOS No.00213J
DUE
Friday 29 March
11.59pm (Brisbane time)
CRICOS No.00213J
Have you chosen an industry?
• National Action on Modern Slavery • Telecommunications:
• National Action Plan to Combat Modern Slavery 2020–25 • Telco Together Foundation | Industry Impact Hub
(homeaffairs.gov.au)
• Property:
• https://www.abc.net.au/news/2022-02-07/human-rights-
groups-demand-more-action-on-modern-slavery/100809012 • Mirvacs-2020-Modern-Slavery-Statement.pdf (azureedge.net)
• Fruit Picking: • Finance:
• Calls for royal commission as report details allegations • Modern Slavery and Human Trafficking in Financial Services
blueberry farmers pay workers $3 an hour - ABC News — THEMIS (themisservices.co.uk)
(ampproject.org)
• Chocolate:
• Australia: Employers accused of exploiting Pacific seasonal
workers - Pacific Beat - ABC Radio Australia • Seven chocolate manufacturers named in Ivory Coast cocoa
sector child labour lawsuit | Confectionery Production
• Fishing:
• Jewellery:
• Ship to Shore Rights: Decent work for fishing and seafood
migrant workers in Asia Pacific (ilo.org) • https://www.ft.com/content/7983b80f-f430-40eb-b6b1-
8ece720aaab4
• Why is it so difficult to stamp out seafood slavery? There is
little justice, even in court (ampproject.org) • Banking:
• Fashion: • https://www.theguardian.com/business/2020/jun/18/barclays-
hsbc-and-lloyds-among-uk-banks-that-had-links-to-slavery
• https://www.oxfam.org.au/shoppingforabargain/
• https://www.mondaq.com/australia/money-
• A World Without Human Trafficking - YouTube (Outland laundering/872168/westpac-accused-of-enabling-child-sex-
Denim) trafficking
CRICOS No.00213J
ASSESSMENT 1: WHY SHOULD MODERN DAY SLAVERY BE RESPONDED TO?
TS 4.1 Exercise self-reflection and accountability in applying knowledge and skills for own learning and effective
practice.
You clearly identify ethical frameworks and other factors that may have influenced your initial response to the
problem. You explain how the experience of exploring an issue from multiple perspectives has clarified your
ethical framework and identify how this may impact on the decisions you make in the future. You frequently use
examples to illustrate your reflections.
SE 5.1 Demonstrate and apply knowledge of ethical and legal principles and practices of
business in critically analysing and effectively responding to complex business issues.
You critically analyse the issue using both deontological and teleological approaches, addressing a
range of rights, rules (laws) and consequences.
CRICOS No.00213J
What questions
do you have?
CRICOS No.00213J
