Utilitarianism is a philosophical theory that seeks to understand the foundations of ethics and morals from the consequences of actions. In this case, utilitarianism is the idea that an action can only be considered morally correct if its consequences promote collective well-being. If the outcome of the action is negative for most, it is classified as morally reprehensible.
In the case of Pet Products Inc., the company's president needed to reduce its workforce by 10 percent to lessen the impact the company suffered from the recession. According to the utilitarian approach to moral reasoning, this was an ethical decision because it was made to keep the company running and to keep workers even in time and recession.
