A software company offers an enterprise solution with a “free trial” that automatically converts to a paid subscription unless canceled. Customer data shows that 72% of users attempt to cancel but find the process confusing, with multiple redirects and hard-to-find cancellation options. The sales team argues this approach maximizes revenue and is common practice.If the company wants to apply a deontological approach, which of the following solutions is most appropriate?

Question

BlackTom AI · Accepted Answer

This question asks us to apply a deontological (duty-based) ethical approach to a business practice involving a free trial that converts to paid automatically. The core issue is whether the company respects the moral status of customers as ends in themselves, not merely as means to profit.
Option a: 'Make cancellation exactly as simple as sign-up, treating customers as ends in themselves rather than merely as means to revenue.' This aligns with deontological ethics by prioritizing the autonomy and dignity of the customer, ensuring they can exit the service just as easily as they entered it. It treats customers as ends in themselves because it honors their right to freely choose, without coercive barriers.
Option b: 'Create a loyalty program to reward customers who stay beyond the trial period.' While loyalty programs can be ethically neutral or positive, they attempt to shape behavior through incentives rather than directly addressing the moral status of customers. This approach introduces a policy aimed at retention, which still leverages customers as means to revenue, not primarily on respecting their autonomy.
Option c: 'Add more notifications about the upcoming conversion to paid accounts but maintain the difficult cancellation process.' This option doubles down on the revenue-driven design and exacerbates manipulation risks by keeping barriers, which conflicts with respecting customer autonomy. It suggests that customers are being nudged toward payment rather than given a straightforward choice.
Option d: 'Keep the current system since customers agree to terms and conditions when starting the trial.' Even if customers sign terms, deontological ethics emphasize moral duties toward individuals, including fair treatment and respect for their autonomy. Simply pointing to contract assent ignores potential coercive design and whether the terms themselves are fair or transparent. This option fails to justify ethical treatment on deontological grounds.
In summary, the reasoning under deontology supports choosing a approach that treats customers as rational agents with the right to opt out easily, rather than strategies that rely on entrapment or coercive revenue-focused design. Hence, option a is the one that best embodies a deontological stance by upholding the ends-in-themselves principle and removing barriers to cancellation.

25_4 MGT3600 Ethical Leadership & Moral Development

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