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2 Utilitarianism Utilitarianism is one of the newer areas of ethical thinking. Just like hedonism, the subject has abundant literature. The word utilis originates from the Latin meaning useful. This school of thinking was initiated in England, with Jeremy Bentham regarded as the founder. The principle it supports is simple: good is useful. The objective is to maximise utility for as many people as possible. In Europe and North America, this is the most widespread ethical system around today. Anzenbacher describes the way to maximise useful good for the widest population possible by using empirically rational principles.

Principle of hedonism Ethical and moral judgment is based on fulfillment of human needs and the evaluation of pleasure that actions have brought about. IV. Social principle Ethical and moral judgment is based on creating the most possible happiness for the largest possible number of people. com 32 Business Ethics: Introduction to the Ethics of Values Normative Ethics Schools Utilitarianism builds its ethics on two pillars: -- Empirically proven actions; and -- Reasonably justified gain. For the purposes of business ethics, only actions that achieve gain are considered ‘good’.

It should pay heed to the freedom of each individual. That is why Hayek mentions freedom in terms of a balance between general rules stipulated by law and general rules of behaviour. Justice is the balance between an individual’s personal freedom and their obedience to law and order. Justice has two principles in economics: -- The commutative principle: this refers to commutative or equalising justice. This is justice that determines ‘rightness’ through arithmetical logic. In reality, this means that all are entitled to own an equal part of all goods.

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