Utilitarianism is a moral doctrine that we must always act in such a way that we produce the greatest possible good over evil, collectively, for all those affected by our actions. A branch of utilitarianism promoted by Jeremy Bentham, and generally considered “European” or “classical” utilitarianism, considers pleasure to be the highest good (Bentham, 1769; Shaw & Barry, 2007). This view, or rule, of utility considers community to be a fiction (Bentham, 1769, ยง 1, paragraph 4) and insists that only individuals be considered; it is a form of self-aggrandizement of the highest level. On the other hand, it is true that we view the world in the most favorable light for our own benefit.
Much of this distinction comes from the length of the lens through which events are viewed; a tragedy today can become the best of all possible worlds tomorrow. For example, a man may be devastated when his wife leaves him, but years later he can see that it was all for the best; the utility of what was originally considered a loss may be apparent. Similarly, those Harvard MBAs and PhDs who were lucky enough to receive job offers from Enron undoubtedly pat themselves on the back and were confident that their careers were guaranteed to be successful; later, many discovered they were unemployed because of the Enron name stain.
Therefore, when considering the utilitarian value of any event, we must take a long-term view of the situation; What may be a positive event that ultimately produces well can be shown to be the worst possible event, while what appears to be a bad outcome at the time may turn out to be the best.
References:
Bentham, J. (1781). Introduction to principles or morals and legislation (electronic version).
Shaw, WH and Barry, V. (2007). Moral problems in business (10th ed.). Belmont, CA: Thompson Higher Education.