AHMAD FAUZAN BIN YUHYI FAIZ 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
AHMAD FAUZAN BIN YUHYI FAIZ 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-and-
fairness/

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/