Business Ethics and Consequentialism

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The Case of the Remaining Transistor Supplier for Pace Makers

Background

In the case of The Sole Remaining Supplier Introduced by the Markkula Center for Applied Ethics
a company that manufacturers transistors is concerned about its position. The company supplies
transistors to a manufacturer of pacemakers, which are used to keep individuals' hearts beating
regularly. The problem is that some members of the board are concerned about the new pacemaker
technology which has not yet been perfected. Those on the other side of the argument say that as the
only provider of transistors to the pacemaker producer they are obligated to provide the necessary
parts, as pacemakers can save lives.

Application of Utility Test

In step A of the Utility Test the consequences or outcomes determine what is right or
wrong. It can be asked whether the company is maximizing benefit and reducing harm in the
decision making process. Those against supplying the transmitter are concerned about harm. One
man was able to pull the wire out of the pacemaker with a simple chest movement. The company
is concerned about liability but also about the potential benefit. If happiness can be measured by
pleasure and pain then the transistors may lead to more pain than pleasure. Therefore, discontinuing
sales of the devices to the pacemaker company is less likely to result in pain for the patient whose
pacemaker malfunctions. If the company retains its positive public image members of the organization
retain their jobs and provide for their families. If, on the other hand, selling the transistors does more
good for patients who need pacemakers the company is doing more good by continuing to supply the
transistors.

B. WHY IS UTILITY A VALID WAY TO DECIDE RIGHT AND WRONG?

If the most happiness or the least happiness are considered continuing to supply the transistors
may be the best decision. Patients will benefit from the pacemakers. Families of the pacemaker
manufacturer employees will enjoy a better way of life when the company does not fold. The
employees and families of the transistor supplier will also experience greater happiness. Some family
members of patients with successfully implanted pacemakers will be happy to see their loved ones
experiencing better quality of life.

C. APPLY THE TEST

STEP 1: Identify the alternative actions that are possible and the persons and groups (the stakeholders)
who will be affected by these actions.
Discontinuing sales of the transistor to the pacemaker manufacturer affects: Families and
employees of the pacemaker manufacturer, possibly families and employees of the transistor
manufacturer, those who would receive pacemakers and their families, and surgeons and medical staff
involved in inserting the pacemakers.
Continuing sales of the transistor will affect the same stakeholder groups.

STEP 2: For each of the most promising alternatives, determine the benefits and costs to each person
or group affected. These ...