Welfare Principle

The Welfare Principle is a guideline used in decision-making, especially in finance and management, to prioritize actions that maximize overall well-being or benefits. It emphasizes choosing options that improve the welfare of the greatest number of people, rather than focusing solely on individual gains or profits. Essentially, it promotes fairness and social good by guiding decisions that lead to the best overall outcomes for society or stakeholders. This principle helps ensure that resources and efforts are used to achieve the greatest positive impact on collective welfare.