Describe the 'Three Ethical decision criteria'

An individual can use 3 different criteria in making ethical choices, The first the utilitarianism is to provide the greatest good for the greatest number. This view tends to dominate business decision making. It is consistent with goals such as efficiency, productivity and high profits. By maximizing profits for e.g.: a business executive can argue he is securing the greatest good for the greatest number—as he hands out disarmingly notices to his employees.
Another ethical criterion is to focus on rights. This calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights. An emphasis in rights in decision making means respecting and protecting the basic rights of individuals, such as the right to privacy, to free speech and to due process.
A third criterion is to focus on justice. This requires individuals to impose and enforce rules fairly and impartially so there is an equitable distribution of benefits and costs. Union members typically favour this view. It justifies paying people the same wage for a given job, regardless of performance difference and using seniority as the primary determination in making lay off decisions. Each of these three criteria has advantages and liabilities. A focus on utilitarianism promotes efficiency and productivity, but can result in ignoring the rights of some individuals, particularly those with minority representation in the organization. The use of rights as a criterion protects individuals from injury and is consistent with freedom and privacy, but it can create an evenly legalistic work environment that hinders productivity and efficiency. A focus on justice protects the interests of the under represented and less powerful, but it can encourage a sense of entitlement that reduces risk taking, innovation and productivity.
Decision makers particularly for — profit organizations, tend to feel safe and comfortable when they use utilitarianism. A lot of questionable actions can be justified when framed as being in the best interest of “the organization” and stock holders. But many critics of business decision makers argue that, this perspective needs to change. Increased concern in society about individual rights and social justice suggests the need for managers to develop ethical standards based on non-utilization criteria. This presents a solid challenge to today’s managers because making decisions using criteria such as individual rights and social justice involves far more ambiguities than using utilization criteria such as effects on efficiency and profits. This helps to explain why managers are increasingly criticized for their actions. Raising prices, selling products with questionable effects on consumer health, closing down plants, laying off large number of employees, moving production overseas to cut costs aud similar decisions can be justified in utilitarian terms. But that may no longer be the single criterion by which good decisions should be judged.

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Titany answered the question on September 7, 2021 at 11:26