Business and It\'s Environment 7th Edition Chapter 22: Ethics Systems: Rights an
ID: 362283 • Letter: B
Question
Business and It's Environment 7th Edition
Chapter 22: Ethics Systems: Rights and Justice
Page 652 Case: Genetic Testing in the Workplace
8. Consider the case of a company with a production process that requires the processing of a metal, such as beryllium, that can be toxic to workers with a particular genetic deficiency. The company has installed dust collection and ventilation equipment, and the workplace meets all government safety requirements by a substantial margin. Nether the less, an individual with a particular genetic deficiency can develop chronic and serious long-terms illnesses from exposure to the metal. At an annualized cost of $1 million the company could install additional equipment that would reduce by half the risk an employee with the genetic deficiency, but illnesses could still occur. For jobs in the metals processing unit, the company could also screen job applicants for the genetic deficiency and not hire those who have the deficiency. The cost of the screening would be approximately 10 percent of the cost of the additional equipment and would reduce the risk of disease by 90 percent. The company also has the alternative of replacing 80 percent of the workers in the metals processing unit with sophisticated and expensive robotic equipment at a net annualized cost of $3 million (net of the savings in labor cost). This would result in the layoff of 48 employees. What should the company do?
Explanation / Answer
Considering the above case, instead of risking the lives of the people by employing them in the metals processing unit and expose them to serious long term illness, company should invest in the robotic machinery by replacing the workers. This can atleast save them from the serious illness that might occur due to the exposure to the metal. Since, being in good health is wealth, it is better to layoff workers from the division. By staying in good health, Workers can at least search jobs else where for their livelihood. By staying there and working, it can be a solution to the short term income, but in long term, exposure to the metal can create serious health issues for life long.
If company installs additional equipment of cost $1 million, the risk would reduce by half. But if workers are screened at 10% of the cost of the equipment, then the risk would reduce by 90%, yet there will be a risk of 10% even after screening and additional equipment. That risk could affect any body or any worker working in the metals processing unit. This is also a risk.
Therefore, looking at the above situation, company should install an expensive robotic equipment and layoff the employees. Looking at the future prospects of the healthy workers, and in the welfare of the workers, company should layoff people who are working in that department, and compensate them if necessary. This will be a permanent solution.
Just in case, if any of the worker's health deteriorates, he might sue the company for using workers to work in the metals department instead of robotic arm. In such case, the charges due to the damages to the workers will be much higher than the cost of the robotic arm. So, as a permanent solution, workers should be laid off and robotic arm has to be installed instead of workers.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.