MGT610 Business Ethics, GDB # 2, Opening date Feb 02, 2015, Closing date Friday, February 06, 2015

[Binte Ahmed]

GDB No 2:

 

Critics of Adam Smith on Utilitarianism

 

Case:

 

Adam Smith was a Scottish moral philosopher and he worked on political economy. His famous book “The Wealth of Nations” considered as the pioneer in providing the fundamental grounds for ethical and moral perspective of economies and established the criterion of redefining the meaning of Utility.

 

Utilitarianism is a theory in normative ethics holding that the proper course of action is the one that maximizes utility, usually defined as maximizing total benefit and reducing suffering or the negatives. This theory is an economic analysis that is human-centered (or anthropocentric) and has a moral foundation (Goodstein, 2011).

 

 

Question:

 

You have learned this concept in detail. Adam Smith has some assumptions and his arguments are based on these postulates.  You are required to identify those areas which are highlighted by Adam Smith in the course of morality and ethics for a society as a whole.

 

(10 Marks)

 

Reference:

Goodstein, Eban (2011). "Chapter 2: Ethics and Economics". Economics and the Environment. Wiley. p. 26. ISBN 978-0-470-56109-6.

[Zeeshan Raza]

There is no need for this book friends.....

Do not confuse yourself with the reference...

[Jannatrukhsar]

Is me bas criticism e btany hen kiya??????????? koi to idea do

[+Hafiza Duaa MBS 4]

kuch smj nae aa rahi

[Zeeshan Raza]

we don't need to look for that book by Goodstein......

That is only a reference book from where the following para is taken.

Utilitarianism is a theory in normative ethics holding that the proper course of action is the one that maximizes utility, usually defined as maximizing total benefit and reducing suffering or the negatives. This theory is an economic analysis that is human-centred (or anthropocentric) and has a moral foundation (Goodstein, 2011).

[ZoYa Ali]

kia likhna hai kuch smj nae araha

[Zeeshan Raza]

stay calm zoya..... here is some idea.....

Adam Smith's arguments rest on utilitarian

arguments that unregulated markets and private property will produce greater benefits than any

other system. According to Smith, when private individuals are left free to seek their own

interests in free markets, they will inevitably be led to further the public welfare by an

"invisible hand:"

By directing [his] industry in such a manner as its produce may be of the greatest

value, [the individual] intends only his own gain, and he is in this, as in many other

cases, led by an invisible hand to promote an end that was no part of his intention.

By pursuing his own interest he frequently promotes that of society more effectively

than when he really intends to promote it. Free markets, according to Smith, ensure

that buyers will purchase what they need at the lowest prices they can find, and

business will correspondingly attempt to satisfy these needs at the lowest prices they

can offer. Competition forces sellers to drop their prices as low as they can and to

conserve resources while producing what consumers actually want.

[ZoYa Ali]

okay thnkss

[Zeeshan Raza]

read out page 46 of handout