Business Ethics

Article: Falling Prices Spread Pain Far Across The Oil Patch.

By Erin Ailworth and Dan Molinski

Which gas price do you want to pay?

Society Benefits While Oil Workers Suffer

❖ Lowest price we have seen in years❖ Saves us money $$$$

➢ We can spend our money elsewhere - entertainment & dining at restaurants

❖ Crude prices of oil has fallen from $100 to $50❖ Dozens of workers lost their jobs at Laredo Petroleum

Inc. ❖ ConocoPhillips told employees expect a salary freeze

& layoffs❖ Exclusive Energy Services- 10 laid off out of 45

employees

The Consequences of Falling Gas Prices

❖ Linn Energy - Stock down 72% in past year❖ Not worth the money to repair pump jacks and

tanks (Tripledee Drilling Co. ) ❖ Unemployed employee workers are thrown into

marketplace ❖ No health insurance❖ Brightest engineers now answering phone calls❖ Families struggling to pay bills

Ethical Dilemma

❖ Is it ethical for us, the consumers, to pay low prices for gas at the expense of others losing their job?

❖ Airlines making HUGE profits. Is that okay? ➢ Cheap fuel, but charging consumers same

high price

❖ What’s best for the majority?

In my opinion...

❖ I would rather pay extra for gas than to see hard working employees lose their jobs.➢ Most have kids and they need to be feed.

❖ $387 ticket to Chicago vs. $120 to drive➢ Profit maximization? I think so.

❖ Utilitarianism focuses on bringing about the greatest happiness for society as a whole. Is saving money one? ➢ Many benefit (economy), few suffer➢ Should be a balance, not everyone can afford

high gas prices

Works Citedhttp://www.wsj.com/articles/falling-prices-spread-pain-far-across-the-oil-patch-1422578398

Question? Thoughts?