John Stuart Mill's utilitarianism posits that the moral value of actions is determined by their consequences, specifically how much happiness or pleasure they produce for sentient beings. Mill's 'greatest happiness principle' suggests that actions are morally right if they promote happiness and wrong if they produce the opposite. He differentiates between intellectual and sensual pleasures, arguing that higher pleasures are preferable, and introduces the concept of subordinate principles derived from the fundamental principle to guide moral judgments.