Moral and Ethics in Engineering Profession

Assignment #2

Semua Boleh Ent.,a state owned auto manufacturing firm based in a BolehLand
were losing market share to foreign imports. Mr. Lee Baba, the CEO wanted a
2008 model to meet the competition. He reportedly ordered that the company
produce a SUV crossover that would be priced at less than RM100k. The car had
to be designed and produced in 24 months rather than 42 months for a new car
line. The resulting car was “1juaraKereta(1JK) ”. Because of the accelerated
production schedule1JK was not tested for rear-end impact until it was produced.
Engineers at the company knew that testing for rear-end impact is a standard
safety procedure. The car was tested after production, and it failed the test,
meaning that it fell below the state of the art for cars of that size. The chief
engineer for safety claims that a new model being prepared for production carries
a potential safety risks if hit from the rear and could possibly burst into flame. The
car is not up to the “state of the art” exemplified by cars of comparable size
produced by other manufacturers. The company did a study and determined that
modifying the gas tank of the 12.5 million cars that would eventually be built
would cost RM130million. However, statistical data showed that the modification
would prevent the loss of about 180 burn deaths, and 180 serious burn injuries.
Insurance companies in bolehland valued human life at RM200k, and a serious
burn injury at RM50k. The CEO of the company claims that the cost –benefit
analysis suggested that the cost of making the car as safe as the competition’s
will cost more than the amount the company will have to pay if sued by families
of those killed in accidents, and so he has authorized production. The chief
engineer has gone over the CEO’s head and has brought the issue to the board
for a vote.
You are a member of the board of directors of Semua Boleh Ent. You know that
most of the board will support the CEO, and that if you oppose the CEO you will
not be invited to serve another term on the board.

1. In your opinion, is the Semua Boleh Ent. or anyone in the company guilty of
any ethical breaches? Could it be defended on utilitarian grounds? Discuss.

2. Is the CEO ethically justified in authorizing the production despite the chief
engineer’s safety claims?

3. Is SemuaBoleh Ent. have a duty to inform the public of the hazard with its
gas tank, and is the public have rights to be so informed. If so how might such
information have been made available to the public?
4. What is your responsibility in this case, and what should you do? Discuss.