Five years ago, MegaCorp, a US company that is the low-price leader in the worldwide widget market, outsourced the manufacturing of its primary product, the Mega Widget. Since then two companies, Beta (located in China) and Gamma (located in Sierra Leone), have manufactured the Mega Widget. Since outsourcing, MegaCorp has insisted that its suppliers comply with the "work hour rules" that had been in place when MegaCorp produced the Mega Widget in-house. These rules stipulate that all assembly line employees be given a 15-minute break for every 180 minutes worked, and that the employees not be allowed to work more than 56 hours in a seven-day period. These rules are based on the MegaCorp CEO's belief that everyone should be allowed to be healthy and that overworking employees compromises their health. In terms of the wages that Beta and Gamma pay their employees, however, MegaCorp has a different perspective. The CEO recognizes that the wages that the suppliers pay their employees are factored in to the prices that they charge to MegaCorp. Therefore higher wages for Beta and Gamma employees would mean higher costs for MegaCorp; and higher costs, the CEO stated, would undermine the company's competitive position in the widget market. Because lower wages paid to Beta and Gamma employees allows MegaCorp to maintain a competitive advantage, the CEO believes that local market conditions should be the primary driver of wages. The CEO also believes that suppliers should be allowed to determine their own holidays because it is not right for one company to dictate to another holiday schedules. She believes that suppliers should utilize a just-in-time inventory system because this type of inventory system worked well for MegaCorp when the company used to produce the Mega Widget inhouse; and she believes that workplace romances should not be allowed her marriage was ruined by working with her spouse.

The MegaCorp CEO's ethics regarding wages can be characterized as _________.

a. deterministic b. universalistic c. relativistic d. monolithic e. absolutist

The MegaCorp CEO's ethics regarding assembly line employees work hours can be characterized as _________.

a. deterministic b. universalistic c. relativistic d. monolithic e. absolutist

The "work hour rules" are based on a __________ ethic.

a. utilitarian b. care c. virtue d. fairness e. rights

The CEO's belief that local market conditions should be the primary driver of wages is based on a __________ ethic.

a. utilitarian b. care c. virtue d. justice e. rights Barton School of Business General Business

Which one of the CEO's beliefs is not based on moral grounds?

a. Her belief that every employee should be allowed to be healthy

b. Her belief that local market conditions should be the primary driver of wages

c. Her belief that suppliers should be allowed to determine their own holidays

d. Her belief that suppliers should utilize a just-in-time inventory system e. Her belief that workplace romances should not be allowed