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ACCA Applied Knowledge · Business and Technology · Ethical conflicts and dilemmas

The directors of Marlow Co are considering closing a loss-making factory. They choose the option which produces the greatest overall benefit for the greatest number of stakeholders, even though some employees will lose their jobs. Which approach have they used, and what is its main weakness?

The directors have used a utilitarian approach, judging the decision by the greatest overall benefit to the greatest number. Its main weakness is that it can justify serious harm to a minority, such as the employees losing their jobs, and consequences are hard to measure.

  1. AUtilitarian; it may justify harming a minorityCorrect
  2. BDeontological; it ignores rules and duties
  3. CUtilitarian; it ignores consequences
  4. DVirtue ethics; it relies on written rules

Explanation

Choosing the option giving the greatest benefit to the greatest number is utilitarianism. Its key criticism is that it can justify harming minorities, such as the dismissed employees, and that outcomes are hard to measure. The other options misdescribe either the approach or its weakness.

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