Deontological Examination of SBC Communications Inc.

The current blatant examples of corporate greed and accompanying devastation thrust upon stockholders and employees have shocked many Americans. Enron and WorldCom are only two companies that have ruined the lifestyle and financial security of so many. The article titled “SBC Says It Will Cut 11,000 Jobs – 3,000 in the State” (Pham, reprint) points out yet another situation where thousands of workers will be without a job, even though the company posted a $7.2 billion profit in 2001 and $46 billion in sales in 2001.

Nevertheless, SBC Communications Inc. blames government regulations for the reduction in profits and sales last year. While it appears that the claim is bogus, the company has implemented a series of layoffs that will cut the employee rolls to a bare minimum. On the surface it appears that the company’s actions are immoral or maybe even unethical. Percesepe (1995) defines “moral” as principles or rules of conduct that govern an individual or society, and “ethics” as the systematic attempt to understand moral concepts and to justify moral principles and theories. This essay will examine the SBC layoffs within the methodology of deontology.

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Historically, capitalism has been characterized by a tendency toward concentration of wealth and by the growth of great corporations (Guralink, 1986). To apply this test to the SBC Communication Inc. It is not moral for SBC to lay off thousands of workers when they are obviously making such a great profit. The question is: Should a capitalistic corporation retain employees as a gesture of loyalty rather than lay them off, even if this act would reduce profits?

Applying the Golden Rule, which is appropriate for a deontological examination, (i. m line when defining deontology is its universalizability. Kant is quoted as saying: “So act that you can will our action as a universal law for all humankind” (in Burtness, 1999, p. This situation is one of the most important turning points for the relevance of deontology in modern American. “The word absolute is often used to refer to a deontological way of understanding morality and of doing ethics” Burtness, 1999, p. After Kenneth Lay, and yes, even Martha Stewart, have sought their own wealth at the expense of so many others, a moral conclusion must be that the Golden Rule aspect of deontology must take precedent. , do unto others as you would have them do unto you), brings into question how would members of the management decision-making team want to be treated if they were employees facing termination.

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Approximate Word count = 848
Approximate Pages = 3 (250 words per page double spaced)

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