The Ethical Impact of Tesla´s Electric
and Autonomous Vehicles on
Customer Satisfaction
Amirreza Peivandzani (s1154532)
Akbar Ghorbani (s1158899)
Mesbah Abdollahzdeh (s1161067)
GA33_PM - Research Methodology and Business Ethics
Dr. Dadi Chen
May 2024
Table of Contents
INTRODUCTION..................................................................................................... 3
PROBLEM STATEMENT...........................................................................................4
THEORETICAL FRAMEWORK....................................................................................5
RESEARCH QUESTION...........................................................................................6
SUB QUESTIONS...................................................................................................................... 6
RESEARCH OBJECTIVE..........................................................................................7
RESEARCH METHODOLOGY....................................................................................7
ETHICAL CONSIDERATIONS.....................................................................................8
PRACTICAL IMPLICATIONS......................................................................................8
RESEARCH LIMITATIONS.........................................................................................9
REFERENCES..................................................................................................... 10
ARTICLES............................................................................................................................. 10
WEB PAGES.......................................................................................................................... 12
APPENDICES...................................................................................................... 13
SURVEY QUESTIONNAIRE......................................................................................................... 13
STATEMENT OF CONTRIBUTION.................................................................................................. 17
Introduction
For the first time in the history of humankind, an auto pilot navigating car
strikes and kills a pedestrian on city streets in the year 2023 (Roberts,
2016). Due to this appalling innovative dilemma, there were non-existent
laws regarding this confusing incident in terms of accountability and justice.
However, from an ethical perspective, there are many concerns to examine
the adaptation of this new reality to welcome innovation and technology
into our lives. This is where business ethics plays a key role in
understanding the moral right and wrong of sensitive topic areas of such.
´Business being a social activity cannot avoid ethics. As a part of the
society, national or international, it has to observe certain ethical norms´
(Parijat, 2015, p.28).
“There are only 2 automotive factories in US which never went broke in
their history; Ford and Tesla Motors”; said by Elon Musk (IANS,2021), the
owner of the Tesla, who has captured the car industry by Tesla’s innovative
electric vehicles (EVs) along with their unique, ground-breaking self-driving
technology. Tesla Motors Inc. was founded in 2003 by American
entrepreneurs, Martin Eberhard, and Marc Tarpenning. However, Elon
Musk, the cofounder of PayPal, took over Tesla as its CEO in 2008 after
Eberhard resigned. (Schreiber and Gregersen, 2024). Tesla released its
first car in 2008 and later introduced its unique electric and self-driving cars
to the world.
Therefore, Tesla Motors' business case is a remarkable example to look
upon in terms of facing and handling ethical issues concerning self-driving
and electric cars. This paper will precisely focus on detecting various
ethical theories and applying them to the context of Tesla Motors self-
driving and electric cars to deeply examine its influence on customer
satisfaction.
Key Words: Electric Vehicles, Self-Driving Vehicles, Customer
Satisfaction, Ethical Theories, Safety, Sustainability
Problem Statement
Tesla’s innovative use of technology to provide consumers with electric and
self-driving vehicles have gazed the attention of its consumers. However,
as the continuous use of these technologies increase, concerns regarding it
ethical considerations are created. Concerns such as autonomous vehicle
safety, racial biases, and corporate social responsibility. On the other hand,
ethical concerns regarding sustainability and environmental impacts are
also in the picture. Tesla should take under consideration factors
resembling resource consumption, battery production and disposal and
carbon footprint of manufacturing.
Tesla’s EVs aim to maximize overall happiness by reducing carbon
emissions and promoting sustainability, aligning with utilitarian principles of
delivering the greatest good for the greatest number. This involves
mitigating environmental damage, enhancing customer satisfaction, and
fighting climate change (Hawkins, 2012). From a Kantian perspective, Tesla
must ensure its autonomous driving technology is rigorously tested for
safety and reliability, respecting the dignity and rights of individuals. The
company has a moral duty to protect customers by providing vehicles that
meet high safety standards, thereby maintaining trust and ensuring users'
well-being.
To conclude, the core problem is to investigate how Tesla balances these
ethical considerations: the utilitarian goal of environmental sustainability
and the Kantian imperative of ensuring user safety and reliability.
Understanding this balance is crucial for assessing how these ethical
frameworks impact customer satisfaction. This study will provide insights
into Tesla’s ethical practices, guiding future developments that harmonize
technological innovation with profound ethical responsibilities towards both
society and the environment.
Theoretical Framework
This paper makes an attempt to evaluate the research based theoretical
frameworks of the Kantian and Utilitarian Theories about the safety,
reliability, and sustainability of Tesla's electrical and autonomous cars. The
use of these ethical theories is strongly correlated to comprehending how
factors such as safety, user friendly features, sustainability, and reliability of
these technologically innovative cars influence the target customer
satisfaction of Tesla Motors Inc. Utilitarianism was developed in Europe,
England, at the late nineteenth century. It is a theoretical belief in which
actions should be determined as right or wrong by its outcomes; ´an action
is right if it tends to promote happiness and contrariwise´ (Duignan and
West, 2024). Hence it is simply a form of theory equivalent to
consequentialism.
This theory can be implemented to inspect how Tesla´s attempts to
promoting sustainability and reducing the environmental impacts of electric
vehicles affect customer satisfaction. Philosophers such as Jeremy
Bentham and John Stuart Mill developed the concept of Utilitarianism,
emphasizing on maximising overall well-being and minimizing harm
(Parijat, 2015). In the case of this study, we can apply this ethical
perspective to promote Tesla´s Electric Vehicles (EVs) long term
environmental sustainability, while simultaneously reducing harm to
ecology.
On the other hand, Kantian theory emphasizes on the importance of duty,
autonomy, and rationality in ethical decision-making (Kant, 1785). This
theoretical framework will explore the ethical obligations of Tesla as an
automaker to ensure the safety and reliability of its vehicles and how these
factors correlate with customer satisfaction. In terms of Tesla, this means
the company has a moral obligation to prioritize the safety and reliability of
its electric and self-driving vehicles. Ensuring that these vehicles operate
safely and reliably aligns with the duty to respect and protect the autonomy
and well-being of customers and other road users (Hansson, 2021).
Research Question
How does Tesla’s electric and self-driving vehicles influence customer
satisfaction with regards to ethical considerations?
Sub Questions
1. How does Tesla's adherence to Kantian Ethics, particularly regarding
the safety and reliability of its electric and self-driving vehicles,
influence customer satisfaction?
2. From a utilitarian perspective, how do Tesla's efforts to promote
sustainability and reduce environmental impact with their electric
vehicles affect customer satisfaction?
3. How does Tesla's advanced technology and user-friendly features
affect customer satisfaction with their electric and self-driving
vehicles?
Research Objective
To investigate the impact of Tesla’s electric and self-driving vehicles on
customer satisfaction.
Research Methodology
This research is based upon a mixed-methods approach to investigate the
ethical impact of Tesla's electric and self-driving vehicles on customer
satisfaction. The reason as to why we are conducting a mixed methods
design is to reduce data collection limitations by incorporating various
methodological techniques to answer the research question as reliable and
precise as possible (Byrne and Humble, 2007). The research methodology
includes both qualitative and quantitative methods:
Qualitative Methods:
- Interviews: Conducting in-depth interviews with Tesla customers to gain
insights into their perceptions of ethical issues related to electric and
autonomous vehicles.
- Focus Groups: Organizing focus group discussions to explore customer
attitudes towards Tesla's sustainability practices and the safety of
autonomous driving technology.
Quantitative Methods:
- Surveys: Distributing structured questionnaires to a larger group sample
of Tesla consumers to quantify their satisfaction levels and ethical
concerns.
- Data Analysis: Using statistical methods to analyse survey data and
identify correlations between ethical considerations and customer
satisfaction.
Ethical Considerations
This research contemplates several ethical aspects. Firstly, informed
consent is a priority to ensure all participants are fully aware of the study's
purpose and have voluntarily agreed to participate. Secondly, maintaining
the confidentiality of participants' data is crucial, with all data being used
solely for research purposes to protect their privacy. Additionally, efforts will
be made to minimize bias and ensure objectivity in data collection and
analysis, thereby enhancing the reliability of the results. Finally, the
research process will be conducted in a manner that avoids any harm or
discomfort to participants, ensuring that the study is respectful and non-
intrusive (Gajjar, 2013).
Practical Implications
Insights into customer satisfaction and ethical concerns; Utilitarianism and
Kant´s Theories can guide Tesla Motors in improving the safety and
sustainability of its vehicles, thereby enhancing product development.
Understanding these ethical impacts can also help Tesla refine its
marketing strategies to better emphasize its commitment to sustainability
and safety. Furthermore, this study can inform policymakers about the need
for regulations that address various ethical issues in the process of
autonomous driving and electric vehicle production, thus contributing to the
development of informed and effective policies.
Research Limitations
This paper acknowledges several limitations. One primary limitation is the
sample size, which may not be representative of the entire population of
Tesla customers, potentially limiting the generalizability of the outcome
findings. Moreover, there is a possibility of bias responses, where
participants' answers might be influenced by their personal biases or a
desire to provide socially desirable responses, affecting the accuracy of the
data. Ultimately, the study is conducted within a limited timeframe, which
may restrict the depth of the investigation and the comprehensiveness of
the findings.
References
Articles
1. Byrne, Jennifer, and Áine M. Humble. “An Introduction to Mixed Methods
Research.” Google Scholar, Aine Humble, 3 Dec. 2007,
[Link]/profile/Aine-Humble/publication/237658796_A
n_Introduction_to_Mixed_Method_Research/links/
5d41847f299bf1995b59b888/An-Introduction-to-Mixed-Method-
[Link]. Accessed 21 June 2024.
2. Gajjar, Nilesh. Ethical Consideration in Research. 2013. Available at:
[Link]
ol02_issue_07_02.pdf
3. Hansson, Sven Ove, et al. “Self-Driving Vehicles—an Ethical Overview.”
Philosophy & Technology, vol. 34, no. 34:1383–1408, 12 Aug. 2021,
pp. 1383–1408, [Link]/article/10.1007/s13347-021-00464-
5, [Link] Accessed 19 June
2024.
4. Hawkins, Troy R., et al. “Comparative Environmental Life Cycle
Assessment of Conventional and Electric Vehicles.” Journal of
Industrial Ecology, vol. 17, no. 1, 4 Oct. 2012, pp. 53–64,
[Link]
5. Johnson, Robert, and Adam Cureton. “Kant’s Moral Philosophy.”
Stanford Encyclopedia of Philosophy, Metaphysics Research Lab,
Stanford University, 2019, [Link]/entries/kant-moral/.
Accessed 21 June 2024.
6. Kant, Immanuel. Groundwork of the Metaphysics of Morals. 1998.
Available at:
[Link]
2/12/[Link]
7. Nissan, Madison. “Self-Driving Cars and the Value of Human Life.” Apr.
2021. Available at: [Link]
%3A76205/datastream/OBJ/view/Self-
Driving_Cars_and_the_Value_of_Human_Life.pdf
8. Parijat, Pranav. “Utilitarianism as a Theory of Business Ethics - an
Evaluation Utilitarianism as a Theory of Business Ethics - an
Evaluation.” 2015. Available at:
[Link]
[Link]/wp-content/uploads/2015/11/3_Pranav.pdf
9. Schmid, Ashley. An Analysis of the Environmental Impact of Electric
Vehicles. May 2017. Available at:
[Link]
article=1009&context=peer2peer
Web Pages
Duignan, Brian, and Henry R West. “Utilitarianism
Philosophy.” Encyclopædia Britannica, 29 Mar. 2024,
[Link]/topic/utilitarianism-philosophy. Accessed 20
June 2024.
IANS. “Tesla, Ford Only Carmakers in US Not to Have Gone Bankrupt,
Says Elon Musk.” Business Standard India, 7 Mar. 2021,
[Link]/article/international/tesla-ford-only-
carmakers-in-us-not-to-have-gone-bankrupt-says-elon-musk-
121030600511_1.html. Accessed 19 June 2024.
Roberts, Paul. “Self-Driving Cars Will Be Ready before Our Laws Are -
IEEE Spectrum.” The Security Ledger with Paul F. Roberts, 23 Jan.
2016, [Link]/2016/01/self-driving-cars-will-be-ready-
before-our-laws-are-ieee-spectrum/. Accessed 20 June 2024.
Schreiber, Barbara A., and Erik Gregersen. “Tesla,
Inc.” [Link], 30 Mar. 2024,
[Link]/money/Tesla-Motors. Accessed 19 June 2024.
Appendices
Survey Questionnaire
Section 1: Demographics
1. What is your age?
- Under 18
- 18-24
- 25-34
- 35-44
- 45-54
- 55-64
- 65 and above
2. What is your gender?
- Male
- Female
- Prefer not to say
3. What is your highest level of education?
- High school or equivalent
- Associate degree
- Bachelor’s degree
- Master’s degree
- Doctorate
- Other (please specify)
Section 2: Tesla Vehicle Usage
4. Which Tesla model do you own or use most frequently?
- Model S
- Model 3
- Model X
- Model Y
- Other (please specify)
5. How long have you been using Tesla's electric and autonomous
vehicles?
- Less than 1 year
- 1-2 years
- 3-4 years
- 5 years or more
Section 3: Ethical Considerations
6. How important is environmental sustainability in your decision to use a
Tesla vehicle?
- Very important
- Important
- Neutral
- Unimportant
- Very unimportant
7. How satisfied are you with Tesla’s efforts to promote sustainability?
- Very satisfied
- Satisfied
- Neutral
- Dissatisfied
- Very dissatisfied
8. How important is vehicle safety to you in choosing Tesla’s autonomous
driving technology?
- Very important
- Important
- Neutral
- Unimportant
- Very unimportant
9. How satisfied are you with the safety features of Tesla’s autonomous
vehicles?
- Very satisfied
- Satisfied
- Neutral
- Dissatisfied
- Very dissatisfied
Section 4: Overall Satisfaction
10. Overall, how satisfied are you with your Tesla vehicle?
- Very satisfied
- Satisfied
- Neutral
- Dissatisfied
- Very dissatisfied
11. Would you recommend Tesla’s electric and autonomous vehicles to
others?
- Definitely yes
- Probably yes
- Not sure
- Probably no
- Definitely no
Statement of Contribution
STATEMENT OF CONTRIBUTION FOR GROUP
ASSIGNMENTS
This Statement of Contribution is for the group assignment which is part of the
assessment requirements of the Module: Research Methodology and Business Ethics
– GA33_PM In order to ensure equal contribution hence a fair assessment of the
group project, this Statement of Contribution was confirmed and signed by the group
members who actively participated in the final submission.
Our group includes:
Full name S-number Signature
Amirreza Peivandzani S1154532
Akbar Ghorbani S1158899
S1161067
Mesbah Abdollahzadeh
We hereby declare and confirm that the group report was conducted based on the
equal contribution of all the abovementioned individuals. We acknowledge that each
member will receive the same assessment result awarded for the report and for any
forthcoming issue we are in agreement that every member will be held liable.
