Which ethical standard describes a company's choice to cut employee pay instead of layoffs?

The utilitarian ethical standard focuses on actions that maximize overall happiness or benefit for the greatest number of people. In the context of a company choosing to cut employee pay instead of resorting to layoffs, this decision reflects a utilitarian approach because it aims to preserve jobs and overall employment stability, which benefits the majority of employees and the larger community. By opting for pay cuts, the company attempts to distribute the burden of economic challenges more evenly across its workforce, rather than a more drastic measure like layoffs that could disproportionately impact some individuals.

This approach indicates a consideration of both the immediate impacts on employees and the long-term health of the organization. The company likely believes that maintaining employment, even with reduced pay, is a better outcome for the overall workforce, thus aligning with the utilitarian principle of promoting the greatest good for the greatest number in the face of economic difficulties.