“Moral Issues in Business” by Shaw and Barry Essay

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Shaw and Barry distinguish two different forms of utilitarianism. What are these two forms? Briefly describe each

Ethical theories aim to provide all the necessary help to complete ethical analysis as to be means of a concrete guideline for making decisions. Each theory has its own points, goals, and consequences. Utilitarianism is defined by Shawn and Barry as the theory that takes into consideration any person who may be affected by actions. (Shaw and Barry, 59) Act utilitarianism and rule utilitarianism are the two types presented by Shawn and Barry. Act utilitarianism is all about happiness and determination of outcomes: the consequences of good actions should make all people stronger. Rule utilitarianism also underlines the importance of positive outcomes but turns out to be more or less flexible. Rules are significant for society and carry certain moral weight.

What do economists mean by the “declining marginal utility of money”?

The marginal utility is a kind of utility when things like taste can stay equal, and a person still imputes less value to any good that serves as an outcome. The “declining marginal utility of money” is considered to be a growing gap that takes place between rich and poor and a kind of decrease in money usage that calls to promote social welfare.

Robert Nozick presents his entitlement theory as a function of three basic principles. What are these three basic principles?

Robert Nozick, an American philosopher, presented 3-part “entitlement theory”, where he demonstrated his belief that “free market exchanges respect people as equals.” (Johnson) There are three main principles which have to be considered: the acquisition principle (a person should be entitled to a holding if he/she acquires this holding according to the justice principle in acquisition); the transfer principle (a person may be entitled to a holding if he/she acquires this holding according to justice principle in transfer from another person, who has already entitled to the same holding); the rectification principle (no one may be entitled to a holding taking into consideration the principle # 1 and # 2).

Two main features of John Rawls’ theory of distributive justice are particularly important. What are these two features? Describe them

John Rawls’ theory of justice aims to explain the ideas of how society should be structured, what the duties of individuals are, and which advantages in the economic and social sphere people may have. One of the features that are significant in the theory of distributive justice is equal rights, this is why every person should have the same rights to achieve positive results in any sphere of life. Another feature that plays an important role is the idea of social and economic inequalities. These inequalities are inherent to individuals in order to benefit one of them and make another achieve the same position.

What is the MAXIMUM rule for making decisions?

The maximum rule for making decisions tells that a person has to find out an alternative according to which the worst things happening to this person turn out to be better that the worst things happening with the same person under some other alternative. So, it is necessary to “maximize the minimum that you will receive.” (Shaw, 229)

What is the role of the “veil ignorance” in Rawls’ theory of distributive justice?

The “veil of ignorance” is a method, offered by Rawls, in order to clear up which social customs may be just and unjust. The key of this method is that any rule may be just only in case if everyone can agree to it, taking into consideration their ignorance to their positions in society. So, race, gender, parentage, and wealth should be put aside in order to create just society. Such omission of crucially important issues plays a significant role in the theory of distributive justice.

According to Shaw and Barry, deciding what sort of economic arrangements would best promote human happiness requires the utilitarian to consider many things. What are the five considerations mentioned Shaw and Barry?

According to Shaw and Barry, the utilitarian should consider several things in order to promote human happiness:

  1. economic ownership;
  2. proper organization of production and distribution;
  3. the nature of social security and other significant provisions;
  4. a kind of arrangement between authority and products;
  5. incentives, their range, material, and character.

Works Cited

Johnson, R. N. Nozick. 2009. Web.

Shaw, William. Contemporary Ethics: Taking Account of Utilitarianism. Wiley-Blackwell, 1999.

Shaw, William, H. and Barry, Vincent. Moral Issues in Business. Wadsworth Publishing, 2006.

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