Utilitarian Issues of Transistor Company - Case Study Example

?Utilitarian Issues Inserts His/Her Inserts Grade Inserts 7th March, Utilitarian Issues Several utilitarian issues arise from this case as different positions and decisions could be made based on the case facts. One of the major utilitarian issues that arise is whether the transistor company should stop producing transistors for the pacemaker company hurting the company and its customers. Another utilitarian issue that should be looked into is whether the company executives have an obligation in extending the happiness of patients through continuous supply of transistors to the pacemaker company (West 41). The final utilitarian issue to be explored is whether the company should just honour the obligations of its shareholders and stop the contract with the pacemaker company. Utility Test The utility test looks into several factors in choosing the best approach to solving a dilemma. Using the utility test we have to deduce the outcomes of the decision to be undertaken by the board of directors of the transistor company. Several solutions will be put forward for consideration and the best decision that will be chosen will concentrate on the happiness of all stakeholders. Step 1: In the case of the transistor company and the pacemaker company. Several solutions exist and we have to choose the best alternative other than the suggested solution. The first step would be for the directors to analyze the results of their intended decision. In this case, we take a look at the three solutions put forward by different directors. The main criteria to be used in deciding the best solution will factor in happiness, the directors’ preferences and the cost of undertaking the decided solution (Mill 66). Step 2: Using the utility test, we look at the solutions brought forward by the different stakeholders. The first solution will analyze the effect on the company being bought and on its shareholders and employees. Another alternative solution would be to continue to produce transistors for the pacemaker company with another company taking care of the quality of pacemakers being produced (Hayry 99). Step 3: If we look at the current situation, we are able to see that the transistor company has a contract with the pacemaker company. However, the transistor company has the intention of annulling the contract since it is not happy with undertaking business with the pacemaker company. Step 4: The decision undertaken by the directors of the transistor company had different ideas on the best solution. Moreover, there was no policy guideline on how to make the correct decision. There were no policies to guide on making the correct decision since the pacemaker technology was quite new in the medical field (Mill 172). As a result, the directors had to look into the ethical implications of their decision and the effect happiness of all stakeholders. Alternative solutions have to be developed in accordance with the utility tests and these decisions will consider the groups that the alternative decision would affect. In the case of our company, the best alternative solution would be to an acquisition by the pacemaker company. This alternative would save the pacemaker company from going under and at the same time help in the continuous production of pacemakers (West 83). However, this solution would disadvantage the company and its other customers other than the pacemaker company. Rights Test A rights test is conducted with the main aim considering the respect of human rights. In the case of the Pacemaker Company and Transistor Company the rights of different stakeholders are analyzed. Step 1: The directors of the pacemaker company have the right to property and they make decisions on behalf of the company. However, while exercising their rights the directors cannot infringe the rights of the directors and employees of the pacemaker company from making a living. Patients who receive the pacemakers also have a right to life and good healthcare and thus their rights also have to be considered. Step 2: Laws recognize the rights of different individuals in the society and it this case, the directors of the company are mandated to represent the rights of all shareholders. On the other hand, the annulment of the contract with the pacemaker company could lead to massive job losses and eventual death of many people who rely on pacemakers to survive. As a result, the directors of the transistor company have to respect the rights of their partners as would have been the case if they were in their position (Hayry 74). Step 3: The rights of all the stakeholders in this case do not have to conflict with the rights of all other interested parties. Therefore, if the directors of the transistor company were to decide to annul the contract with the pacemaker company then it would infringe on the rights of the patients and pacemaker company directors and employees. By using the rights test, it outlines the importance of law and the respect of human rights. Based on the rights test, the best solution would be for all stakeholders would be for the agreement between the transistor and pacemaker companies to continue. Moreover, human rights are very important and they are recognized universally. Comparison The act of comparing different tests used in deciding the best solutions we make use of certain criteria. One of the criterions used in this case is analysing each of the tests used in making the right decision. In our case, we took a look at the utility test which focuses on the total happiness. This is in contrast to the rights test which focuses on the rights of all individuals. The comparisons of the two tests show correlation on the side of the best solution to be undertaken in our case. For instance, in the utility test we look at the outcome and it is decided that the best outcome is whereby the company continues with the production of transistors (Tannsjo 70). Moreover, this is the same solution arrived at when the rights test is applied since the rights of all stakeholders is considered with the aim of coming up with the best solution. In both cases, the same decision is reached by the directors of the companies (Hayry 59). The only difference arises on the reason for arriving at the designated solution. Using the utility test, the best solution was arrived at after analysis of the benefits and cost of choosing the best solution. On the other hand, the rights test came to the best solution after careful analysis of the rights of all the stakeholders involved in this situation. However, some of the directors of the company gave themselves overriding privileges and powers in choosing the best decision, their choices were overridden by the collective decision undertaken by all directors. Overview From the analysis of the above tests we have to decide which is the best test to be used in future decision making situations. The above two tests arrived at the same solution but each had different reasons for arrival at the specified solution. However, the utility test was more informative and better in arriving at the designated solution compared to the rights test. This is because the utility test looked at the alternative solutions, cost and the current situation. The utility test is best suited for complex situations since it has myriad ways of solving a persistent problem. This is different from the rights test which focuses on the rights of different stakeholders involved in a specific case (Tannsjo 56). Ascertaining the rights of different individuals or group is very difficult and this could worsen if the situation is complicated. In some cases, the protection of certain rights end up infringing other rights and therefore it is difficult finding a solution in such situations. In our case, the utility test looked into the alternative solutions that the directors of the transistor company could make use of in making a decision, the cost of implementing this decision (Mill 129). While the rights test focussed on how rights of different individuals could be balanced for the benefit of everybody. Therefore it is fair to conclude that the utility test was best suited solution mechanism for this scenario. Works Cited Hayry, Matti, 2002. Liberal Utilitarianism and Applied Ethics. London: Penguin. Print. Mill, Stuart, 2006. Utilitarianism: Easyread Large Edition. Chicago, IL: Pelshiver. Print. Tannsjo, Torbjorn, 2008. Understanding ethics: an introduction to moral theory. 2008. London: Routledge Falmer. Print. West, Henry, 2004. An Introduction to Mill's Utilitarian Ethics. Boston, MA: Edward Elgar Publishing. Print. Read More