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Utilitarian Approach 

Example. At a company that I used to work for their was a major problem with software releases causing havoc with the customers. We had a lot of poorly trained Customer Service Representatives and the few people who knew how to solve problems were in a department that was called Technical Services.  The company decided that the knowledge needed to be discriminated to more of the Customer Service Reps and decided to  move the Technical Services in with them and make them constantly available for questions. In the mean time they also changed the name of the Technical Services department and took away a lot of their autonomy. This decision was made by balancing the interests and did not make any of the parties happy. The decision could have worked if any of the currently employed Customer Service Reps wanted to learn how fix the problems but they were very happy with the thought that it was not their problem so the only thing this really served to accomplish was to destroy moral with the people who did know how to fix the problems and caused all of them to quit over the next few months. 

I would say that Ethically the decision that they made was not "Bad" but that it did not serve the purpose that they expected to and hurt the moral of the employees.