Case Study 1 Rachel Case Study

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256735 (Management Ethic Group J)

Case Study 1 Rachel Case Study Rachel works as a Quality Assurance Engineer at a large electronics company. She is responsible for the final testing of her company’s servers and is part of a team which decides when new products will be shipped to distributors for sale. Rachel’s company has a contract with another company which makes the chips which are incorporated into the servers Rachel’s company makes. The business model for this product is to release a new generation server approximately every six months, meaning Rachel has a limited timeframe to conduct her Quality Control tests. Because there is such a short amount of time between the releases of each next new product, the Quality and Assurance department cannot perform every possible test on the servers to ensure they are defect free. Rachel will not ship a product if there is any possibility that the server could malfunction and cause physical harm to the customer. However, she will ship a product that has minor likelihood of failure resulting in data loss for the customer, because she knows that if she doesn't, her company's competitor will.

Questions 1. Discuss and evaluate Rachel’s actions from the point of: a) Utilitarianism Utilitarianism is an ethical philosophy that focuses on consequences and decides right from wrong. This is a type of consequentialism. Utilitarianism holds that for the largest number, the most ethical choice is the one that will yield the greater benefit. We can see on this case that the company of Rachel has a deal with another company that produces the chips installed into the company of Rachel’s servers. The business model for this company is to release roughly every six months a new generation server, meaning that Rachel has a short timeline for performing its quality assurance tests. b) Rights The definition of rights-based ethics is that there are certain freedoms, both positive and negative, that all human beings have based solely on being human. Such privileges can be either normal or traditional. That is, the natural rights are those that are moral while those created by humans are normative and represent the values of the community. On this scene, she is responsible for the final testing of the servers in her company and is part of a team that determines when new items should be delivered for sale to distributors. c) Justice. On the basis of fair adjudication between competing claims, the concept of justice may be defined as the moral duty to act. It is linked, as such, to justice, right and equality. Such example, Rachel does not ship a product if the server has any risk of malfunctioning and causing the client physical damage. However, she will be shipping a product with a minor likelihood of failure resulting in data loss for the customer, because she knows that if she does not, the competitor of her company will.

AHMAD FAUZAN BIN YUHYI FAIZ

256735 (Management Ethic Group J)

2. Provide suggestions on what Rachel should do to overcome her problem. Rachel talks of the situation. Rachel works as Quality Control Engineer for a major electronics corporation. She is responsible for the final testing of her organization’s servers and is part of a team that determines when new items will be shipped to distributors for sale. Rachel’s company has a contract with another business that produces the chips built through Rachel's servers business. The business strategy for this company is to deliver a new generation server approximately every six months. Because there is a short time between the releases of the next new product, it is not possible for the Department of Quality and Assurance to carry out any possible test on the servers to ensure that they are defect free. Rachel will not ship a product if there is any possibility that the server will fail and cause physical harm to the customer. Nevertheless, she would ship a product with a higher probability of failure leading to data loss for the customer because she knows that if she doesn't, the competitor will be her company. The ethical question posed in this case is that Rachel sends out products that can cause physical damage to the consumer. The main reason that they are sent is because she doesn't want to take on other rivals. Rachel will always put consumer needs first before competing. Rachel, her father, her corporation and their families, the technology industry, consumers and government agencies are the stakeholders involved in those companies. The first solution we had in mind was to try to convince the higher executive to revamp the business plan and make it every eight months, so that they have more time to consider consistency. They wouldn't have to risk the wellbeing of the customer because if it's free of defects they can test every product. However, revamping the business model might cost them a lot of money since their rival would still sell new goods every 6 months. Second, the organization can have more staff at the quality control department. The downside to having this option would be that it would help both improve the degree to productivity and meet the deadline. It will also impact the allocation of wages to new workers in the budget of the organization. Furthermore, Rachel will ensure all goods are first reviewed and assured before shipping. Advantages include: product quality will not be challenged, and any flaws will be detected through re-examination of all the products. Disadvantages include: the competitors of Rachel’s business that take over the market and if the products are defective it will take time to launch another product. The whole last solution is to try their best to cope with quality compromised by the time-limit. The advantages: the company will meet the customer's time and therefore gain the company's trust. When time is worrying, this consumer will rely on the company and the company will gain a good reputation for meeting the deadline because if other consumers need a supplier who can perform like the company did, they'll return. The disadvantages: If the goods are returned, the company will lose more without good quality, products or services cannot be listed as "delivered." The first solution in my decision is where we ask the executives to extend the timetable so that if they have no flaws and if it works well, we will test the goods thoroughly. Revamping the model would now ensure that the product is free of quality and defects. This solution would secure the customer's right to have both a defect-free and a harmless product. Sure, it would take the company time to adjust to the 8 month, making the consumer wait every 8

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256735 (Management Ethic Group J)

months for the new product, but it will guarantee the quality and safety of the product, making the company praiseworthy. Reference

Utilitarianism. (2018, December 12). Retrieved June 29, 2020, from https://ethicsunwrapped.utexas.edu/glossary/utilitarianism University, S. (n.d.). Justice and Fairness. Retrieved June 29, 2020, from https://www.scu.edu/ethics/ethics-resources/ethical-decision-making/justice-andfairness/ US Legal, I. (n.d.). Duties and Rights Law and Legal Definition. Retrieved June 29, 2020, from https://definitions.uslegal.com/d/duties-and-rights/ Collin, A. (2017, March 19). Service Learning Journal 8. Retrieved June 29, 2020, from https://josefxtan.wordpress.com/2017/03/19/service-learning-journal-8/