Answer based on the connections between culture and ethical climate in a business. we know how the values of people who operate the business lead to different decisions about how the business is run, how employees, suppliers, and customers are treated.

While some people consider all that is required to be ethical is to do no harm, others hold that ethical behavior requires also preventing harm when possible, and still others believe ethical behavior requires an even higher standard of doing good.

Consider the Case of the 70k Experiment (provided below). Whatever the reasons were, CEO Dan Price raised the minimum salary of every employee in his privately owned business to $70,000. This is an amount Price believed necessary for his employees to achieve a reasonable quality of life in the costly greater Seattle area. Had he chosen to continue paying market rates it would be hard to make the case he was doing harm to people, and some could argue he was even doing good by providing employment opportunities. Yet Price, and many other CEOs such as Jim Sinegal, chose to see employee wages not as a detractor from profits, but rather as a moral obligation to improve the quality of life of people working for the company. In both cases, comparable but distinct, benefits were seen by the companies.

Answer the following based on case and ethics:

1. What is the purpose of making a profit?

2.At what point does profit lose its value?

• In other words, what would need to occur, or under what circumstances, would the value of making a profit not be worth it any longer? Such as "Profit loses its value to me if I have to break the law to get it..." but use other examples besides that.
• 3.The market rate for wages is set by this basic premise: You should pay employees as little as possible, just enough to keep them productive and to keep them from going to your competitors. While certainly logical, is this model ethical? Explicate your position using ethics.

Case of the 70k Experiment::::

Five years ago, Dan Price, the CEO of Seattle-based payment processing company Gravity Payments, raised all of his 120 employees' salary to at least $70,000 a year, taking a huge pay cut to make it happen. Gravity Payments is a medium-sized company who does credit card payment processioning for small businesses. A media restorm resulted, much of it focused on negative blowback from the decision, including executive resignations, sniping from local startups, and a lawsuit from Price's co-founder (also his brother). Rush Limbaugh called Price "a communist." All in all, the coverage painted a messier picture than a simple feel-good story of a generous CEO doing good by his employees. Then the media moved on. It's been a tumultuous ve years but one BBC reporter with a long memory recently decided to check back in with Price and nd out how things have shaken out at Gravity Payments? In short, the company is doingjust ne, and notjust by the usual nancial metrics: The headcount has doubled and the value of payments the company processes has gone from $3.8 billion a year to $10.2 billion. But there are other metrics of which Price is more proud. "Before the $70,000 minimum wage, we were having between zero and two babies born per year amongst the team," he says. "And since the announcement--and it's been only about four-and-a-half years--we've had more than 40 babies." There have been other benets besides this baby boom. "More than 10 percent of the company have been able to buy their own home, in one of the U.S.'s most expensive cities for renters. Before the gure was less than 1 percent," Hegarty adds. Another way to put that is employees are now actually living secure, middle-class lives and reaching markers of success like owning a home and having kids that were once assumed to be within grasp of most dedicated full-time workers. In short, Gravity Payments put the American Dream back within nancial reach for its employees. Employees responded to this largesse not by slacking off but by working harder. "When money is not at the forefront of your mind when you're doing your job, it allows you to be more passionate about what motivates you,\" one told Hegarty. Senior staff say they're less stressed than before the pay hike. Not only are employees more productive, they are also ourishing outside the ofce, according to Price. Team members have lost huge amounts of weight, been able to cut their commutes, spent more time with their families, and helped loved ones pay off debt. "We saw, every day, the effects of giving somebody freedom," he says. Could more companies do better by paying more? A $70,000 minimum wage isn't possible or right for every business, but, given the results of this experiment, more companies might want to consider raising salaries for practical, as well as moral, reasons