What Is Utilitarianism?

Utilitarianism is a theory of ethics that bases what is right and wrong solely on the outcomes of each outcome over another as well as taking into account the interests of others rather than one’s own interests (Caae.phil.cmu.edu, 2014), another way to describe utilitarianism is to say that the consequences provide the greatest good for the greatest number.

For Ted and Gwen, who are employees within Nick’s Patisserie, Ted is a homeless teenage and Gwen is a single mother whose only source of income is her pay from Nick’s Patisserie. Therefore, overstating profits and understating losses would benefit them both as it would mean that Nick would be able to get the loan he needs to keep the business running and keep both Ted and Gwen employed.
If Nick keeps the business going he will be providing income for himself as well as Gwen and Ted. Also, without the loan from the Bank the business may have to start charging a higher price for their products which might cause a decrease is customers which will eventually cause operations at Nick’s Patisserie to stop. Also, without the loan business may stop almost immediately which will also have a negative effect on customers as a product they like is no longer available. Nick’s decision to overstate profit and understate losses will have a negative effect on the Bank if the business was to continue doing badly. This is because if the business does not pick up as Nick believes it will it is less likely that Nick will be able to pay back the loan from the
One virtue that could be applied to Nick’s dilemma falls under personal recognition with the virtue being indifference according to Aristotle’s moral virtues table. Indifference is considered to be when good deeds are done for their own sake, not for personal recognition (Fisher & Lovell, 2003). In Nick’s situation, being indifferent would mean that he is changing the facts simply because they need to be changed not to improve his business or get ahead in his career; however this is not the case. In this case, Nick is not being indifferent; instead he is portraying false modesty which is a corresponding vice to being indifferent. Nick is portraying false modesty because his intentions appear to be helping Gwen and Ted while there is an underlying reason for him to manipulate the data he provides to the bank which benefits him, therefore, according to virtue ethics, by overstating profit and understating losses for the bank Nick is not being