Utilitarianism

• The ethical action is the one that achieves the greatest good for the greatest number of people.

• Recognizes trades-offs required in decision-making and proposes that the interests of all individual’s involved should be considered.

• Goal is to maximize benefits and minimize harm to all stakeholders

• Difficult to apply, as it is impossible to foresee all consequences of a decision and the potential costs and benefits of all actions may be difficult to measure.

>> More Accounting Terms & Glossary?