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You are the CEO of a public company, MBI, that sells information technology (hardware and software) to large companies and governments. The government of the

You are the CEO of a public company, MBI, that sells information technology (hardware and software) to large companies and governments. The government of the country Izan announces that it is accepting proposals for a new project. The company with the winning proposal will be awarded a contract worth millions of dollars in revenues and profits. You think that MBI is the most qualified company to do the work and has a good chance to win the contract. However, you are not sure it should submit a proposal because the project is to develop a database to identify and keep track of all of the ethnic and religious minorities in the country so that the Izan government can arrest, imprison, and kill them. (Part of the project is to keep track of people once they are imprisoned and how they are or will be killed.) The information technology business is very competitive, and you believe that all of your competitors will submit proposals for the project. According to US law it is legal for you to submit a proposal and accept the contract

  1. Who are the stakeholders to MBI's decision?
  2. Is it ethical for MBI to submit a proposal for the Izan contract? In your answer please refer to utilitarian, deontological (rights-based), and virtues ethical perspectives. Should you submit the proposal?
  3. According to stakeholder theory, should MBI submit a proposal? Please explain your answer.
  4. According to shareholder theory as presented by Milton Friedman, should MBI submit a proposal? Please explain your answer.
  5. A brilliant consultant who has just graduated from Central Washington University tells you that MBI can earn higher profits if it does NOT submit a proposal for the Izan project. She says something about corporate social responsibility, the performance-expectations gap, and business reputation. What was her argument? (In your answer, refer to all of these terms.)
  6. As the head of MBI, you realize that many of your employees regularly face ethical dilemmas such as the one you faced with Izan. Identify three specific steps you could take to ensure ethical decision-making by employees of MBI.
  7. For this question assume that MBI did not submit a proposal but that its rival company, HAL, did submit one. You find out from talking to people you know at HAL that the project manager who submitted HAL's proposal did not want to because he thought it was unethical to do so, but he did so anyway because he was under a lot of pressure from his boss. Drawing on the lessons of Milgram's Obedience experiment, explain why the project manager submitted the proposal even though he did not want to. Be very specific.

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