Question

Ethics in Business and Accounting Question

What are some real or hypothetical examples of how Rawls' Maximin approach could be applied to a group (company, government, informal group, etc.)? Would "maximizing the minimum" for that group be an effective and/or ethical strategy to follow?

Answer 1

An example of application of the Maximin approach to a company would be for all stakeholders working towards improving the financial condition of the lowest paid worker and maximizing the wages for that person. Thus, this would lead to maximization of the benefits of the most vulnerable section and would lead to a more equitable distribution of wealth and earnings.

This approach of maximizing the minimum is a useful construct and ultimately lead to better distribution of finite goods or wealth and leads to upliftment of the weakest and most vulnerable. Hence, this is definitely a good thing from ethical standpoint.