Conclusion. From Utilitarianism point of view, theftis not always bad

 

From Utilitarianism point of view, theft is not always bad. There could be moral (ethical) theft.

 

We could easily imagine ethical theft by Strong Version of Utilitarianism – a starving beggar steals the piece of bread from rich shopkeeper.

 

We could imagine ethical theft by Weak Version of Utilitarianism – informational products which may be copied with zero costs and would not be bought otherwise.

 

(BTW, media producers often overstate their losses – they assume that all unlicensed users would buy their products by market price.)

 

 

Storchevoy M. A. Corporate Social Responsibility. 2013

Topic 2 (1) Normative Analysis: Utilitarianism

 

 

Asymmetry of information

The firm sells fake vitamins (harmless but useless)

 

Case 1. Consumers get aware that they are cheated and receive the negative utility (negative emotions).

 

 

Strong version: The firm gains, consumers lose. We need to compare the gain of the firm and losses of consumers. Could we make some propositions about their magnitudes? A priori, it is unclear which is larger. INDEFINITE.

Weak version: One party wins, other party loses – these states is NON-COMPARABLE.

 

 

Case 2. The consumers do not get aware and are happy about these vitamins.

Strong version. The company got profit, the consumers got satisfaction. IMPROVEMENT

Weak version. Both parties win, it is Pareto IMPROVEMENT.

 

 

Case 3. Consumers’ health deteriorates from vitamin deficiency.

Strong version. The firms gains, consumers lose, but we can not definitely say which gain or loss is

large. INDEFINITE.

Weak version. One party wins, other party loses – these states is NON-COMPARABLE.

 

Storchevoy M. A. Corporate Social Responsibility. 2013

Topic 2 (1) Normative Analysis: Utilitarianism