Business Ethics and Consequentialism



Business Ethics and Consequentialism

Introduction

There is a company which wants to start work on the pacemaker. A pacemaker is an electrical device which is used to generate the artificial heartbeats in the heart (Heart Foundation, 2010). The need of this device arises when the heart of an individual fails to function properly. For this device, the company needs transistor which a company manufactures, and this is the sole source for Pacemaker Company. The company of sole transistors is reluctant to supply the transistors because of some legal and ethical issues. The company does not want to take the risk (Santa Clara University, 1996). The opportunity cost is that if the company is not supplying the transistors, the pacemakers could not be completed.

Utilitarian ethical problems confronting the transistor company

In the utilitarian ethics, the main focus of action is on “What is the use of that action or “What would be the result of that action” (Hinman 2003, pp. 17-25). In the above case, the sole supplier of Transistor Company faces some utilitarian ethical problems. In the following lines, these are discussed one by one.

1. Firstly, if the company is not supplying the transistors, the technology will not be introduced in the market. Currently, it is in the infancy stage, but slowly and gradually it will be improved through research. So, the supply of transistors to the pacemaker company is in the interest of humanity.

2. Secondly, the need of such artificial pacemakers arises when the natural heart of the individual is not properly functioning. Those people who are dying because of the failure of pacemaker is not the responsibility of the company. In addition, the time period between the installations of pacemaker to death, is because of this technology. According to the utilitarian ethics, the company should supply the transistors as it gives some relief to the patients.

3. Thirdly, this Company is the sole supplier, it means there is no alternative for the pacemaker company to get transistor. The cancellation of the deal will make a trend and discourage other companies also to not supply the transistors.

4. Fourthly, as in some cases people are dying owing to the failure of transistor in the pacemaker. This indicates that, the transistors are of poor quality. It is the utilitarian ethical problem for the company to sell such a poor quality of transistors to the pacemaker company.

Theory of Jeremy Bentham and the company

Jeremy Bentham was the father and also the authority on the Utilitarianism. According to his “Utilitarian Calculus”, the moral acts are those which on one hand maximize the pleasure, minimize the pain on the other hand. Bentham focused on the qualitative for the utilitarian calculus. In this theory, Bentham put light on the consequences as well. If the consequences of any action are positive, the action is virtuous and justifiable. Furthermore, an action can also be judged from the experiences or consequences. However, the changing nature of society can also change the laws. Then past experiences and consequences can be translated ...