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Essay / Research Paper Abstract
An 11 page paper that begins with background information for this real case. The write considers several theories of ethics to determine if the company is acting ethically or unethically. Theories included are the different types of utilitarianism and deontological theories. Business ethics theories are also discussed, such as stockholder, stakeholder and social contract theories. Friedman's comments regarding any business' social responsibilities are also included. Bibliography lists 8 sources.
Page Count:
11 pages (~225 words per page)
File: ME12_PGsdgeet.rtf
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Unformatted sample text from the term paper:
(Spagat, 2009). These events ignited a very large fire in the area (Spagat, 2009). Subsequently, homeowners and businesses filed lawsuits against SDG&E which the company settled for over $740 million
with still more claims yet to be settled (Spagat, 2009). These settlements had the further effect of raising SDG&Es insurance rates dramatically, from $13.6 million in 2008 to $55 million
in 2009 (CBS 8, 2009). SDG&E then submitted requests to the Public Utility Commission to raise its rates to offset the increases in their insurance premiums (CBS 8, 2009; Spagat,
2009). Speaking for the company, Jennifer Ramp explained that the companys costs were out of their control and they need to raise consumers electricity rates (CBS 8, 2009). The increased
rates are supposed to raise revenue by $29 million per year (CBS 8, 2009). The company also wants permission to pass along to customers any excess costs they incur as
a result of fire damage that is not covered by insurance (CBS 8, 2009). Citizens fighting this increase charge the company with failing to take responsibility for their own actions
(CBS 8, 2009). Michael Shames, Executive Director of UCAN, commented that increasing rates is the equivalent of encouraging the company to continue to act stupidly by continuing to build in
the backcountry, where the weather gets very dry and then, pass on any of their costs to customers instead of holding the company accountable for their own mistakes (CBS 8,
2009). The company denies any wrongdoing. The question is a matter of ethics. Is it ethical for SDG&E to pass on costs that are the result of their own
mistakes to customers? Ethical questions should involved ethics theories because ethics does not mean the same thing to all people. By reviewing theories on the topic, one gains
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