Ethics in business guides what should be done and what should not be done. The application of ethical theories is vital in deciding on the actions to take to solve problems and promote business success. According to the Concise Encyclopedia of Business Ethics (2022), ethical theories try to give a clear account of our obligations. The theories do not state specific examples but tell us what we need to do. This paper focuses on consequentialism theory and its application in business.
Section 1: Overview of Consequentialism Theory
Definitions of the Theory
According to Pirie-Gifiths (2021), consequentialism theory is a theory that argues that an action is considered wrong or bad based on its outcome (p. 1). Actions that come with benefits as the results are good, while actions that have negative consequences are wrong. Consequentialism is an attractive theory because it guides on what should be considered ethical and what should be regarded as unethical. It is easy to apply consequentialism theory in situations where the outcome can be predicted.
Contributors to the Development of Consequentialism Theory
One of the contributors to the development of this theory is Jeremy Bentham (Pirie-Giffiths, 2021). Bentham came up with the utilitarianism approach, which explained that the morality of an action should be judged by its ability to make people happy. The most ethical steps are those that bring happiness and pleasure.
Another contributor to this theory is John Stuart Mill. According to Pirie-Griffiths (2021), John argued that we should consider an action ethical if it brings lasting happiness. Actions that do not bring lasting happiness should therefore be avoided. His theory stresses doing a cost-benefit analysis before taking action.
Historical Foundation of this Theory
Consequentialism theory has been around for a long time. According to the Seven Pillars Institute (2018), the term consequentialism was first coined by philosopher Elizabeth Anscombe in the essay “Modern Moral Philosophy.” In the 18th and 19th centuries, different philosophers came up with ideas that shaped the consequential theory we have today. Some of the famous theorists that helped in building the theory are Stuart Mill and Bentham Jeremy (Pirie-Griffiths, 2021). The societal element that made theorists develop a consequential approach is the motivation to help humans identify what is ethical and what is not.
Advantages and Disadvantages of Incorporating Consequentialism theory into decision-making
One of the advantages of consequentialism theory is that it focuses on the overall good. According to the Stanford Encyclopedia of Philosophy (2003), consequentialism explains that an action is morally correct based on its chances of leading to positive consequences. Another advantage is that it enables humans to be careful before making decisions so that they can only arrive at beneficial conclusions in the long run. The theory also provides a clear framework that people can apply when making decisions; what humans have to think of before making decisions is whether the decision will be beneficial or will cause harm.
The theory also has disadvantages; one of the disadvantages is that it cannot be applied in a complex situation where it is difficult to predict outcomes. Another disadvantage is that it can result in actions that cause harm since people understand happiness differently. For instance, when the theory suggests that what brings long-term joy is ethical, some people may apply the theory to kill their enemies so that they can become happy.
Using my GVV-based values and purpose profile
This theory would align with my decision-making because I prefer making decisions that bring long-term benefits to an organization. When faced with ethical dilemmas, I always go back to my values and choose what I believe is the best step to take. I believe in doing a cost-benefit analysis of decisions to identify the best decision that can be made to give good results to the people involved.
Section 2: Analysis of a current business situation or event
Business and Societal Ramification of Conflict of Interest
The business selected for this analysis is Pfizer. The conflict of interest identified is collusion with the National Institute of Health (NIH) to give faked studies about the efficacy of the Covid-19 vaccine and to hide information about the vaccine’s side effects so that the vaccine can be taken by many members of the public (Joseph, 2023). According to Wallstreetmojo (2022), conflict of interest is where a person’s or organization’s interests compromise professional duties and interests. The activities that can be termed conflict of interest are usually illegal. Troy (2022) posit that conflict of interest occurs when an entity becomes unreliable because professional interests clash with selfish interests (p. 1).
Summary of Selected Business
The company name is Pfizer, and it belongs to the pharmaceutical industry. The Company’s values include excellence and courage; it strives to achieve excellence through innovation (Pfizer, 2023). Other values include equity and joy. Pfizer is a public company since members of the public own some of its shares. Pfizer is an international company worth $ 227.98 billion. In terms of size, it is a large company that supplies pharmaceutical products to different countries worldwide. Pfizer’s mission is to become the most valued pharmaceutical Company. The Company’s vision is to be innovative and bring therapies that improve patients’ lives.
Why I selected the Company
I have selected Pfizer because it is one of the companies at the forefront in helping fight the Covid-19 pandemic. Pfizer has manufactured Covid-19 vaccines currently used by different countries to stop the spread of the virus. I am interested in whether Pfizer has been ethical throughout the vaccine development and distribution process.
Overview of the Conflict of Interest
The conflict of interest is in the collusion with NIH to successfully supply vaccines to the public (Joseph, 2023). Pfizer is accused of having colluded with NIH to hide information that would discourage some people from using its vaccines. The conflict of interest raises a legal concern because some people have experienced side effects of Covid-19, but Pfizer did not come clear on the possible side effects of their vaccine. The possible cause of this conflict of interest is for the Company to make a lot of money in supplying vaccines.
Section 3: Personal Application
Using the theory
I would use this theory when creating the Company’s action plan. I will use the theory because it will help me identify the right action to take. The advantages I would derive include making ethical decisions and coming up with decisions that bring long-term happiness. The disadvantages are that I can find myself in an ethical dilemma or make a decision that may bring losses to the Company.
Values and Purpose Profile
My values include integrity and acting in utmost good faith. A personal purpose statement is a roadmap (Kristenson, 2022), which I need to follow to keep my values alive. My purpose profile, therefore, states “I am dedicated to acting in integrity and utmost good faith to promote happiness”.
How I would integrate my Values and Purpose into the action plan
I would use the values to identify the decisions that promote integrity. I would also apply the values in identifying actions that can promote people’s well-being. I will revise possible actions to identify those in line with acting in utmost good faith.
In conclusion, consequentialism theory has been in existence for a long time. It encourages taking actions that lead to happiness. The theory was developed by theorists who were motivated to help people make ethical decisions. The theory has advantages and disadvantages that have to be considered before it is applied in making decisions.
References
Concise Encyclopedia of Business Ethics. (2022). Ethical Theory: Overview. https://conciseencyclopedia.org/entries/ethical-theory/
Joseph, M. (2023). Conflicts of Interest: Pfizer’s Secret Collusion with the NIH. Big Pharma Endangers Public Health. https://www.globalresearch.ca/conflicts-interest-pfizer-secret-collusion-nih/5812823
Kristenson, S. (2022). 37 Personal purpose statement examples and ideas. Happier Human. https://www.happierhuman.com/personal-purpose-statements/
Pfizer. (2023). Our Values and Culture. https://www.pfizer.com/sites/default/files/investors/financial_reports/annual_reports/2019/our-purpose/our-values-and-culture/index.html
Pirie-Griffiths, O. (2021). Ethics explainer: Consequentialism. The Ethics Centre. https://ethics.org.au/ethics-explainer-consequentialism/#:~:text=Consequentialism%20is%20a%20theory%20that,of%20this%20theory%20is%20utilitarianism.
Seven Pillars Institute. (2018). Applying Utilitarianism: Are Insider Trading and the Bailout of GM Ethical? https://sevenpillarsinstitute.org/ethics-101/applying-utilitarianism-are-insider-trading-and-the-bailout-of-gm-ethical/
Stanford Encyclopedia of Philosophy. (2003). Consequentialism. https://plato.stanford.edu/entries/consequentialism/
Troy, S. (2022). Conflict of Interest Explained: Types and Examples.Investopedia. https://www.investopedia.com/terms/c/conflict-of-interest.asp
Wallstreetmojo. (2022, September 22). Conflict of Interest. https://www.wallstreetmojo.com/conflict-of-interest/
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