Uncertainty of Outcomes

All the business decisions face the uncertainty outcomes : for example, will the product be successful as indicated by various tests? Will the efforts to add to the company’ product line make the company more productive? Will moving a manufacturing facility increase in profitability and efficiency? Etc.

Ethical of choices in business would be easy if one could be assured that he would make only safe products, that he (firm) would pursue only those policies that increase profits and protects the jobs of workers, or would always know how much to invest in new product and process development as to overcome competition.

Because of these reasons, according to the Rule Utilitarians one should be guided by broad, general principles rather than a case – by – case benefit analysis.

If the businessmen knew of the outcomes of their actions, then the ethical decisions would not be as difficult as they usually are.

Several current business practices are controversial because it is not known whether they are beneficial or harmful to society. As certain hostile takeovers. Like Sir James Goldsmith, a British businessman who has attempted several takeovers in the U.S. argues that he serves as a kind of cleansing agent, clearing up inefficiency and waste and making companies more profitable thean they were before.

The result is a more productive and competitive company, one that is better able to survive in an increasingly worldwide marketplace.

However, certain critics of such take overs argue that takeovers focus only on short – term gains, not long – term productivity they also destroy productive companies in the name of individual greed, and they cause unemployment for displaces workers and contribute to community economic decline.