Identify ethical and legal issues in typical workplace situations. Classify each situation with one or more of the Dimensions.

$$ In order to achieve profit expectations, a stockbroker hides the financial risk of an investment product from potential clients.

$$ To prevent an adverse effect on stock prices, corporate officers deliber$-$ ately withhold information concerning a possible corporate takeover.

$$ To protect the organization, management decides not to publicize a design flaw in an automobile that could lead to possible injury and even death to consumers, because the announcement might result ni legal action.

$$ Asupervisor takes advantage of his position and threatens an employee with dismissal if she does not acquiesce to his inappropriate requests and language use.

$$ Angry because of an unfavorable performance appraisal of acolleague, an employee leaks confidential information to the colleague that creates distrust among others in the department and results in a lawsuit.

Dimension $1$: Behavior that Is Illegal and Unethical

When considering some actions, you will reach the conclusion that they are both illegal and unethical. The law specifically outlines the "black" area$$those alternatives that are clearly wrong$$and your employer will expect you to become an expert in the laws that affect your particular area. When you encounter an unfamiliar area, you must investigate any possible legal implications. Obviously, obeying the law is in the best interest of all concerned: you as an individual, your company, and society. Contractual agreements between two parties also offer guidance for legal decision making. Frequently, your own individual sense of right and wrong will also confirm that the illegal action is wrong for you personally. In such situations, decisions about appropriate behavior are obvious.

Dimension $2$: Behavior that Is Illegal Yet Ethical

Occasionally, a businessperson will decide that even though a specific action is illegal, there is a justifiable reason to break the law. A case in point is a law passed in Vermont that makes it illegal for a pharmaceutical company to give any gift valued at more than $$25$ to doctors or their personnel. Those supporting the law charge that the giving of freebies drives up medical costs by encouraging doctors to prescribe new, more expensive brand$-$name drugs. The law$$s opponents contend that the gifts do not influence doctors and are merely educational tools for new products. Although a pharmaceutical firm and its employees might see nothing wrong with providing gifts worth in excess of $$25,$ they would be well advised to consider the penalty of $$10,000$ per violation before acting on their personal ethics. A better course of action would be to act within the law, possibly while lobbying for a change in the law.

Dimension $3$: Behavior that Is Legal Yet Unethical

If you determine that a behavior is legal and complies with relevant contractual agreements and company policy, your next step is to consult your company$$s or profession$$s code of ethics. This written document summarizes the company$$s or profession$$s standards of ethical conduct. Some companies refer to this document as a credo. If the behavior does not violate the code of ethics, then put it to the test of your own personal integrity. You may at times reject a legal action because it does not "feel right." Most Americans were appalled to learn that the marketing of sub$-$prime loans packaged as reputable securities has been blamed for causing the "Great Recession." Although they might have acted legally, their profiting at the expense of company employees, stockholders, and the public hardly seemed ethical. You might be faced with situations in which you reject a behavior that is legal because you would not be proud to have your family and community know that you engaged in it$.$

Dimension $4$: Behavior that Is Both Legal and Ethical

Decisions in this dimension are easy to make. Such actions comply with the law, company policies, and your professional and personal codes of ethics.