Utilitarian Issues Case Study Example | Topics and Well Written Essays - 1250 words

Utilitarian Issues - Case Study Example 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 facto r 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. ... 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 th e 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