Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

What ethical perspective focuses on the consequences of one's actions?

1. Deontology

2. Utilitarianism

3. Virtue Ethics

4. Social Contract

The correct answer is: Utilitarianism

Utilitarianism is the ethical perspective that emphasizes the consequences of one's actions. It posits that the rightness or wrongness of an action is determined by its overall utility, or the degree to which it produces good outcomes for the greatest number of people. This approach encourages individuals and businesses to consider the broader impacts of their decisions, aiming to maximize happiness and minimize suffering. In a business context, utilitarianism would drive leaders to evaluate their strategies based on the potential benefits and harms to all stakeholders involved, guiding them toward decisions that promote the best overall results. By contrast, deontology focuses on adherence to rules or duties, evaluating actions based on whether they align with established ethical principles, regardless of the consequences. Virtue ethics centers on the character and virtues of the individual making the decision, rather than the outcomes of their actions. The social contract theory emphasizes the agreements made within a society that dictate moral obligations, rather than assessing the consequences of actions directly. Thus, utilitarianism stands out as the perspective specifically concerned with the results of actions.