The Sole Remaining Supplier Trisha Bouchard Orlando Bustos

The Sole Remaining Supplier Trisha Bouchard, Orlando Bustos, Priscilla Correa, Jeremy Mah, Yves Prosperine-Laflamme

Agenda Summary of the Case Discussing the Problem Immediate Issues Underlying Issues Conclusion

Case Summary

Sole Supplier Case Details Case dates back to 1975 We are on the board of directors of a company that makes transistors. Back then, several deaths occurred due pacemaker implantation in humans Several factors could be to blame, 3 in particular We need to make a decision Summary Immediate Issues Underlying Issues Change Alternatives

The Pacemaker in 1975 A pacemaker is a medical device that sends electrical impulses to regulate a heartbeat However, it disables the patient’s normal heartbeat If the pacemaker fails, the patient dies Summary Immediate Issues Underlying Issues Change Alternatives

Stakeholders Patients Transistor Company Summary Immediate Issues Pacemaker Company Underlying Issues Change Alternatives

Pacemaker Company Creates pacemakers that give the ability to sustain life, and live a normal life Require transistors for their pacemakers Creating faulty pacemakers that are killing patients Due to this, many suppliers have terminated contracts with them due to liability Summary Immediate Issues Underlying Issues Change Alternatives

Patients require a pacemaker to live, as it is the only option A basic right to live Summary Immediate Issues Underlying Issues Change Alternatives

The Transistor Company Due to this issue, the company may be legally responsible for deaths related to faulty pacemakers Many members on the board no longer recommend selling transistors to the pacemaker company However, they are the sole supplier available in the market, and could lose market share Summary Immediate Issues Underlying Issues Change Alternatives

Immediate Issue

The Dilemma Protect your shareholders interest and stop selling the transistor, therefore, eliminating legal liability Summary Immediate Issues Continue to sell the transistor, risking legal liability, and the dissatisfaction of shareholders Underlying Issues Change Alternatives

Underlying Issues

Underlying Issues The right to live, the most basic human need Summary Risks of lawsuits Immediate Issues Underlying Issues Risking Human lives Change Alternatives

Obligations Moral Duty to continue supplying transistors? Summary Immediate Issues Obligation to their shareholders Underlying Issues Change Alternatives

Rights + Moral Obligations Does the right to life affect our obligation to look after our own needs first? Deontologist position Summary Immediate Issues Underlying Issues Change Alternatives

Change

Technological Change Advancements in technology allow for an improved implantable pacemaker Failures during implantation and reliability causing injury and death Summary Technological advancements improve reliability and quality Immediate Issues Underlying Issues Pacemaker risk is virtually nonexistent and safe for patients Change Alternatives

Economic Change Sole remaining supplier Patients Stakeholders Supplying Transistors Pacemaker company Society Summary Immediate Issues Underlying Issues Change Alternatives

Legal Change New technologies do not have proper laws or regulation No quality of assurance for products Vulnerable to lawsuits and liability Summary Immediate Issues Underlying Issues Change Alternatives

Discussing the Problem What would you do?

Alternatives

Utilitarianism An action is right if it produces the greatest amount of good for the greatest amount of people Actions are evaluated by looking at their consequences Summary Immediate Issues Underlying Issues Change Alternatives

Alternative 1: Terminate Supply + Summary • Avoid potential lawsuits • Focus on other markets • Reduce risks for stakeholders • The pacemaker can potentially save many lives • Casualties • Further development of the pacemaker is stalled • Lose market share Immediate Issues Underlying Issues Change Alternatives

Alternative 2: Do Nothing and Keep Selling + • Fulfill obligation to protect human life • Save many lives • Keep 100% market share - • Many Potential lawsuits • Casualties of pacemaker deaths • Reputation damage • Currently not in stakeholder’s interest Summary Immediate Issues Underlying Issues Change Alternatives

Alternative 3: Create legal contracts and regulations to reduce liability + Summary • Keep market share • Potentially save many lives • fulfill obligation to protect human life. • Allow for further advancement of the pacemaker • No liability • Potentially have a faulty product • Expensive and time consuming Immediate Issues Underlying Issues Change Alternatives

The Decision Alternative 3: Create legal contracts and regulations to reduce liability Summary Immediate Issues Underlying Issues Change Alternatives

Why? Utilitarian Analysis Duty-Based Analysis Degeorge Special obligations Summary Immediate Issues • “produce the greatest amount of good for the number of people affected by the action” Underlying Issues Change Alternatives

What really happened? Continued to sell BUT: Increased standards Assured against liability "showing compassion without sacrificing business. . . in this way they felt that they were serving the common good, protecting people's rights to a promising new medical technology, the pacemaker. ” Summary Immediate Issues Underlying Issues Change Alternatives

Questions?

Thank-You