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business
business ethics

Questions and Answers of Business Ethics

You buy a number of expensive items at a store. On arriving home and looking over the itemized receipt, you realize that the cashier forgot to ring up a Sony DCR-HC46 MiniDV Digital Camcorder with
Suppose that in the previous exercise, the cashier forgot to ring up a 50¢ pack of gum rather than the camcorder.What should you do? Why should the value of the item make a difference? Hint. Sales
Suppose your boss invites you to bring your wife along at company expense.What should you do?
Suppose the travel agent asks you who the third party is.What should you say?
No oversight at the brokerage. I was a retail stockbroker working on a team that catered to high net worth speculative investors. One night I had some spare time, so when our team risk report
Reporting cheaters. While an undergraduate student I witnessed three friends cheating on an exam.If caught, they would be expelled from school, which could bar them from finding a good job or getting
In the previous exercise, would it make a difference if the penalty for cheating were milder?
Suppose the supplier representative phones you a couple of days before the game to say that he can’t make it, but he will have his company purchase the tickets for you and your girlfriend. Is it
Suppose you have already made a long-term contract with a competing supplier, and there is no chance you will source from the supplier who invites you to the game. Yet he is unaware of this, and he
If you decided not to use the salary information for negotiation,would you nonetheless have an obligation to tell the company you discovered it?
A free online news service requires users to register by proving certain information, such as address, gender, age, and salary bracket. The Web site promises that the information will remain
Suppose a sealed note is mistakenly placed in your office mailbox. You open it and start reading before you realize it is addressed to your coworker Brad,who is married with three kids. It is a
A revealing plant visit. I visited a manufacturer’s facility to investigate its ability to scale up our manufacturing process for widgets.We didn’t sign a confidentiality agreement before
The above analysis rests on the assumption that there is no implied promise to continue servicing clients past the legal period of the contract (unless such a promise is made orally).However, our
Filching printer paper.When I take business school classes, I prefer to have a hard copy of the notes that are distributed electronically by the professors. Because there is typically a long line of
Vacation allowance. My previous employer allowed 10 vacation days a year, which could be used at any time without management approval. In addition there were five personal days, for which there were
Unqualified intern. While a systems engineer at a bank, at one point I shared a cubicle with Michael, a summer intern. I got to know him quite well, and we became friends. Near the end of the summer,
Playing someone else’s shell game. I was working as a contractor for a company that had several concurrent projects with the same client. Each project had a budget, and some had more money left in
Too much sophistication. I was a relatively new associate in the sales and trading division of a major investment bank. One of our tasks was to value and manage risk for structured securities, which
Fraud in Armenia. I was a Peace Corps volunteer in a small Armenian mining town. I spent a year trying to learn the language and local customs, and in the process I got to know the owner of a local
Blaming the subcontractor. I worked for EPI, a contractor that specialized in the construction of manufacturing plants. EPI does most of its own work but subcontracts for electrical and
Inside information? Mr. Martin was, until recently, head of investor relations at Verband, a Fortune 500 company. He had risen steadily through company ranks, due to his infallible judgment and
Too much pressure.19 Hank Kolb was put in charge of quality assurance at a plant where practices were not up to par. The most immediate issue facing him was what to do about some pressurized cans of
Fraud at Interspeed Corporation.20 Interspeed Corporation had just gone public, and Senior Vice-President for Sales Arthur Goodwin was keen to meet annual revenue targets. The fourth quarter target,
Celebrity endorsement.21 L&L Advertising just signed a contract with movie star Lance Willard for celebrity endorsements of Bud’s Best bacon. The president of the firm assigns the account to
Deterring car theft with Lojack.22 Lojack is a hidden radio transmitter device used for retrieving stolen vehicles. Because a potential thief cannot tell whether Lojack has been installed, it is not
The MasterDept lockbox problem.23 MasterDebt, a credit card company, receives thousands of payment checks from cardholders every month. The company wants to exploit float so as to earn as much as
Insider trading.25 On November 17, 2008, the SEC filed charges against Mark Cuban for insider trading.The SEC complaint said that Momma.com, an Internet search engine firm, gave Cuban advance notice
Consulting for Carnegie Foods.26 The Pet Food Division of Carnegie Foods operates the world’s second largest pet food cannery at Allentown, Pennsylvania. It ships to five regional distribution
Writers’ strike.27 On November 5, 2007, the Writers Guild of America, representing 12,000 writers, struck the Alliance of Motion Picture and Television Producers. A key issue in the strike was the
Retrocession.28 A large private bank employs relationship managers (RMs) who work with high net worth individuals. The RMs help their clients to manage their substantial wealth, avoid taxes, and so
Tax avoidance. The private bank mentioned in the previous exercise has a number of European clients for whom it provides substantial tax savings. By exploiting loopholes in complex tax laws, the bank
The Empire Globe Corporation.29 Susan Bond is Corporate Economist at Empire Globe Corporation, a chemicals company. CEO John Treadstone created the position so that he could have someone to help him
Opt in or opt out.30 Countries typically use an opt-in or opt-out approach to organ donation. Opt-in countries give people an opportunity to sign a donor card to grant permission to us their
Preserving a culture.35 Bob Littman is owner of a series of galleries and a major client of Artifacts, an importer of ethnic arts.While having lunch with Mary, a manager at Artifacts, he is
What was the Richmond City Council trying to accomplish with its Minority Business Utilization Plan? If you had been a member of the council, would you have voted for the plan?RICHMOND, VIRGINIA, THE
What are the pros and cons of a minority set-aside plan like Richmond’s? Will it have good consequences?Does it infringe on anyone’s rights? What conflicting moral principles, ideals, and values
Do you believe that there was sufficient evidence of racial discrimination to justify the city’s plan? Who is right about this—Justice O’Connor or Justice Marshall?RICHMOND, VIRGINIA, THE
Justice O’Connor and the majority of the Court seem to believe that there must be some specific, identifiable individuals who have been discriminated against before race-conscious measures can be
In light of the fact that no federal statute specifically bars racial discrimination in private domestic commercial transactions between two business firms, and given the evidence that racism is an
What measures could Richmond have taken that would have increased opportunities for minority business but would not have involved racial quotas? Would such measures be as effective as the original
The doctrine of comparable worth holds that men and women should be paid the same wage for doing jobs of equal skill, effort, and responsibility. Were Marianne Stanley and George Raveling doing work
Was Stanley treated unfairly or in some way discriminated against? Should USC have offered to pay her more?IN BASKETBALL, TALENT PLUS HARD WORK equals success. That’s an equation that holds true
Why do sports played by men tend to be more popular and generate more revenue than sports played by women? Are female athletes—and their coaches—disadvantaged?Are they discriminated against? If
Should universities like USC base their coaching salaries entirely on market considerations? Or should they pay the coaches of men’s and women’s sports comparable salaries based on experience,
Respond to the argument that because men are free to coach women’s teams and women to coach men’s teams, there is nothing discriminatory in the fact that one job pays more than the other.IN
Was Sharrona Alexander’s pregnancy likely to have adversely affected her coaching performance? If so, was Marianne Stanley wrong to ask her to resign?How should Stanley have handled the
If you were a board member, how would you vote?Why?HAVING SPEARHEADED THE WOMEN’S CAUSE ON behalf of equal pay for jobs of equal value, Phyllis Warren was elated when the board decided to readjust
What moral principles are involved in this case?HAVING SPEARHEADED THE WOMEN’S CAUSE ON behalf of equal pay for jobs of equal value, Phyllis Warren was elated when the board decided to readjust
Do you think Phyllis Warren was unfair in taking advantage of the board’s implied admission of salary discrimination on the basis of sex? Why or why not?HAVING SPEARHEADED THE WOMEN’S CAUSE ON
Do you think Phyllis was wrong in giving the board the impression that her proposal enjoyed broad support?Why or why not?HAVING SPEARHEADED THE WOMEN’S CAUSE ON behalf of equal pay for jobs of
If the board rejects the committee’s request, do you think the committee ought to sue? Give reasons.HAVING SPEARHEADED THE WOMEN’S CAUSE ON behalf of equal pay for jobs of equal value, Phyllis
According to her own testimony, Vinson acquiesced to Taylor’s sexual demands. In this sense her behavior was “voluntary.” Does the voluntariness of her behavior mean that she had
In your opinion, under what circumstances would acquiescence be a defense to charges of sexual harassment? When would it not be a defense? Can you formulate a general rule for deciding such cases?IN
Assuming the truth of Vinson’s version of the case, do you think her employer, Capital City Federal Savings and Loan, should be held liable for sexual harassment it was not aware of? Should the
What steps do you think Vinson should have taken when Taylor first pressed her for sex? Should she be blamed for having given in to him? Assuming that there was sexual harassment despite her
In court, Vinson’s allegations were countered by Taylor’s version of the facts. Will there always be a “your word against mine” problem in sexual harassment cases? What could Vinson have done
In concerning itself with Pettit’s off-the-job conduct, did the Board of Education violate her right to privacy?Or was its concern with her lifestyle legitimate and employment related?TEACHING
Was Pettit’s behavior “unprofessional”? Was it“immoral”? Did it show a “lack of fitness” to teach?Explain how you understand the terms in quotation marks.TEACHING ELEMENTARY SCHOOL
Was the Board of Education justified in firing Pettit?Explain.TEACHING ELEMENTARY SCHOOL CHILDREN with intellectual disabilities requires skill, patience, and devotion, and those who undertake this
Was the court’s verdict consistent with its earlier handling of the case of the homosexual teacher?TEACHING ELEMENTARY SCHOOL CHILDREN with intellectual disabilities requires skill, patience, and
If teachers perform competently in the classroom, should they also be required to be moral exemplars in their private lives? Are employees in other occupations expected to provide a moral
Which of the following, in your view, would show unprofessional conduct, immorality, or lack of fitness to teach: drunken driving, smoking marijuana, advocating the use of marijuana, forging a check,
Under what conditions do employers have a legitimate interest in their employees’ off-the-job conduct?TEACHING ELEMENTARY SCHOOL CHILDREN with intellectual disabilities requires skill, patience,
Describe how you’d feel if you had to take a psychological test or an honesty test either as an employee or as a precondition for employment. Under what conditions, if any, would you take such a
How useful or informative do you think such tests are?Is their use a reasonable business policy? Assuming that tests like those described are valid and reliable, are they fair? Explain.At Christmas
Do you think tests like these invade privacy and, if so, that this invasion is justified? Explain why or why not.At Christmas time, holiday shoppers dro p all sorts of things into the Salvation
What ideals, obligations, and effects must be considered in using psychological tests as pre-employment screens? In your view, which is the most important consideration?At Christmas time, holiday
If you were an employer, would you require either employees or job applicants to pass an honesty exam?Explain the moral principles that support your position.At Christmas time, holiday shoppers dro p
What do you think a business’s reaction would be if the government required its executive officers to submit to an honesty test as a precondition for the company’s getting a government contract?
Utilitarians would not find anything inherently objectionable about psychological tests as long as the interests of all parties were taken into account and given equal consideration before such tests
Should there be a law prohibiting or regulating psychological test as a pre-employment screen?Should a decision to use these tests be made jointly by management and labor, or is testing for
If you were Jean Fanuchi, how would you feel about your decision to order the installation of the viewing and listening devices? What other options did she have? Did she overlook any moral
Do employees have a right not to be spied on? If you were an employee at Fanuchi’s store, would you think your privacy had been wrongly invaded?JEAN FANUCHI, MANAGER OF A MODERATELY large
How would you assess Fanuchi’s actions if you were the owner of the store? Whose interests are more important in this case—the employer’s or the employees’?JEAN FANUCHI, MANAGER OF A
Do you think Fanuchi acted immorally? Why or why not? Evaluate her action by appeal to ethical principles.JEAN FANUCHI, MANAGER OF A MODERATELY large department store, was worried. Shrinkage in the
How should Fanuchi and Katwalski handle the information they’ve gathered about their employees?What ideals, obligations, or effects are relevant to your answer?JEAN FANUCHI, MANAGER OF A MODERATELY
Do you agree that Johnson Controls’s fetal protection policy discriminated against women? Do pregnant women have a moral—not just a legal—right to work with lead?THE UNOBTRUSIVE FACTORY SITS
Suppose exposure to lead did not affect sperm or the male reproductive system. Would Johnson’s policy still have been discriminatory? Would it hamper women’s efforts to win equality in the
Can there be a nondiscriminatory fetal protection policy? Is Justice White correct in arguing that companies have an obligation to avoid causing injury to fetuses just as they do to other “third
Suppose a company forbids any employee capable of reproducing from working with lead. Would such a policy wrongly interfere with employees’ freedom of choice? Would it be an invasion of their
Evaluate fetal protection policies from the egoistic, utilitarian, and Kantian perspectives. What rights are involved? What are the likely benefits and harms of such policies?THE UNOBTRUSIVE FACTORY
If they are fully informed, do employees with a certain medical condition have a right to work at jobs that can be hazardous to the health of people in their condition?Or can company policy or OSHA
Would you agree with Joseph Kinney that the real issue is the need to remove toxins from the workplace?Is this a realistic goal?THE UNOBTRUSIVE FACTORY SITS BEHIND A hill-side shopping center in the
If you have, or plan to have, children, what sort of balance do you seek between career and family life?Do you believe that the mindset of corporate America is conducive to the type of
Should the United States require companies to provide paid maternity leave? Should it assist them to do so?What about paternity leave?YEARS AGO, THE FAMOUS ECONOMIST PAUL Samuelson quipped that
Do companies already have a mommy track, whether they call it that or not? Is the idea a good one? Is it somehow discriminatory against women?Against men?YEARS AGO, THE FAMOUS ECONOMIST PAUL
Should men be more actively involved in childrearing?If not, why not? If so, what steps, if any, should either business or society take to encourage this?YEARS AGO, THE FAMOUS ECONOMIST PAUL
Should special organizational arrangements be made for workers who wish to combine career and child raising?If so, identify the steps that companies can take to accommodate parental needs more
Does a firm have an obligation to give employees the flexibility to work out the particular balance of career and family that is right for them? Or does this go beyond the social responsibilities of
Can paid maternity or paternity leave make sense from a business point of view, even if it is not subsidized by the government?YEARS AGO, THE FAMOUS ECONOMIST PAUL Samuelson quipped that “women are
What are the moral issues in this case? What ideals, obligations, and consequences must Carla Lombard consider? What rights, if any, are at stake? Will it make a difference whether Carla adopts a
Would it be wrong of Carla to ask Tom Walters about his health? Why or why not? Defend your answer by appeal to moral principle.CARLA LOMBARD ALWAYS WORKED WELL with people. So when she opened her
Suppose Tom had AIDS. What should Carla do? Is an employee’s HIV status a job-related issue? In particular, is it a factor Carla should consider in deciding whether to promote Tom? What part, if
How should companies address the problem of public fear and prejudice when employees with AIDS have direct contact with customers?CARLA LOMBARD ALWAYS WORKED WELL with people. So when she opened her
Should companies develop programs or policies that deal specifically with AIDS? If so, what characteristics should they have? Or should they deal with the problem only on a case-by-case basis? Should
Does Tom have a moral obligation to disclose his medical condition to Carla—and, if so, at what point?Suppose a job applicant has a chronic, potentially debilitating medical condition. Should he or
Is Craig Lindley’s behavior a sign of some psychological problem that Rayburn Unlimited should help him overcome, perhaps with personal counseling? Or is dismissal called for? Should Al Smetana
Does Al have just cause for dismissing Craig? Does it matter whether or not Rayburn Unlimited has an explicit policy regarding computer use? Suppose it has such a policy and Craig violated it. Does
Does the fact that Craig is a valued member of the company with a long record of service make a difference?Or that he is a personal friend of Al’s?AL SMETA NA IS THE FOUNDING PRESIDENT of a

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