Moral obligations of companies
Case Study 2
MicaTech Industries, a leading manufacturing company, chose to incorporate advanced artificial intelligence (AI) technologies to optimize production processes, reduce costs, and get a competitive edge in the market. However, while the initial phases of AI automation seemed promising, several consequences soon emerged.
The rapid integration of AI left many workers with outdated or incompatible skills. The company struggled to provide adequate retraining programs for existing workers quickly enough and had to rapidly hire new employees with technological expertise at high salaries. Significant numbers of workers found themselves displaced or sidelined from their jobs and others were laid off. Employees who had dedicated years to the company suddenly faced uncertainty about their future roles.
The atmosphere at MicaTech became tense, with employees fearing further automation. The constant uncertainty about job security resulted in increased stress levels, and decreased worker morale. To avoid being laid off, employees felt they needed to prove their worth. They attempted to increase productivity by ignoring safety protocols, cutting corners, and taking risks. This affected product quality, and customers began to complain. It also produced a marked rise in workplace injuries, illness, and mental distress.
The leadership at MicaTech decided to continue with their plan to adopt more AI technology but launched some employee engagement programs and promised to implement more training in the future. They committed to transparently communicating their long-term plans to employees and emphasized safety as a company priority. However, they also announced more layoffs and refused to hear concerns raised by the workers’ unions.
Question: What are the moral obligations of companies like MicaTech to balance technological innovation with the welfare of employees? What recommendations would you make to MicaTech to address the moral consequences of its adoption of AI automation?
Sample Answer
Moral Obligations and Recommendations for MicaTech:
Moral Obligations:
- Right to livelihood: Companies have a moral obligation to minimize negative impacts on employee livelihoods when implementing automation. MicaTech’s rapid changes risked violating this by displacing workers without adequate support or transition plans.
- Fair treatment: Employees deserve fair treatment and respect, even during technological transitions. MicaTech’s failure to effectively communicate, provide training, and address worker concerns fell short of this moral responsibility.
- Employee well-being: Companies have a duty to ensure the physical and mental well-being of their employees. MicaTech’s focus on efficiency over safety directly jeopardized this obligation.
- Transparency and participation: Employees deserve a say in decisions that affect their lives. MicaTech’s lack of transparency and disregard for worker voices further eroded trust and accountability.