Business and It's Environment 7th Edition

Ethics Systems: Rights and Justice

Case: Genetic Testing in the Workplace

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?