THE ETHICAL PERSPECTIVE

The AT&T and Verizon Merger - The Ethical Perspective

The AT&T and Verizon Merger - The Ethical Perspective

Utilitarian Ethical Analysis

The control of a company, in fact, is a power - and a responsibility - much more than the mere possession of the shares. Similarly, becomes important also that the use of this power is wants to do. And, therefore, in order to make a full assessment of the extraordinary transactions, it is necessary to take account primarily of the rectitude of intentions that animate actors in this particular market.

Figure 1 - Process for Implementation of Numerical Model of the Ethical Theory of Utilitarianism

The fact that in principle can be regarded as valid the opinion that the extraordinary can stimulate the enthusiasm of management aimed at greater efficiency, which increases the competitiveness in the market, regardless of the implementation and not always successful, this does not means that this reasoning can justify all the consequences that the marriage between companies involved. It is worth an example: if a company with strong growth prospects acquires one with low growth prospects, with what other reason can justify such an operation, if not with the mere intention of achieving short-term speculative gains? Again, if the organization start an acquisition after a restructuring plan based mainly on the sale of the assets of the acquiree and cuts to jobs, cannot help thinking that this was the real motivation for the operation? Or, if a company acquires another borrowing and then repays the debt dismembering the acquiree (so-called leveraged buy-out), that weight may have the statements of the new owners of the alleged greater critical mass or greater competitiveness achieved?

Stakeholders

Numerical Value

Investors

5

External R&D

5

Technical Regulatory Organizations

4

Customers

4

NGOs

2

Employees

-3

Related associations functioning in industry

0

Professional Associations

0

Suppliers

-2

Governments

0

Shareholders

4

Insurance Companies

2

Resultant numerical (ethical) value of action

21

Table 1 - Implementation of Numerical Model of the Ethical Theory of Utilitarianism on AT&T and Verizon merger

A close analysis of the AT&T and Verizon merger in light of utilitarian ethics reveals that the right intention that we can represent as the mental state of transparency and efficiency targets for specific voltage, can be traced in a nutshell, the purpose of improving the management of the acquired company and create value for distribution to all risk from exposure more generally known as the name of stakeholders (Collett, 2010; Syrjälä & Takala, 2008). This mindset implies that integration should lead to positive aspects of ethics and ethics negative.

The close examination of the AT&T and Verizon merger in light of utilitarian ethics discloses that the answer is that these justifications and these actions have no connection with the long-term growth and the role of wealth creation and development of the firm as an institution of social interest, should have (Richman, 1984; Miller, 2002). On the contrary, they are tied to the selfish interests that favor some - like what is called risk bearers (Stockholder) which managers and majority shareholders - at the expense of other, weaker in the chain: how employees who suffer layoffs, layoffs, mobility, reduction, or consumers who see ...