Cherries on Top, a national ice cream shop, is struggling financially to keep up with the bigger chains. The top executives have decided to close all the stores in the Northeast and Texas, as that will give them an additional one million dollars to put into marketing. This executive is practicing the
A) individual approach.
B) utilitarian approach.
C) moral-rights approach.
D) justice approach.
E) value system approach.

Question

Quizplus · Accepted Answer

Ethical behavior in the utilitarian approach is guided by what will result in the greatest good for the greatest number of people. Managers often take the utilitarian approach, using financial performance-such as efficiency and profit-as the best definition of what constitutes "the greatest good for the greatest number." Thus, a utilitarian "cost-benefit" analysis might show that in the short run the firing of thousands of employees may improve a company's bottom line and provide immediate benefits for the stockholders.

Cherries on Top, a National Ice Cream Shop, Is Struggling