Business Ethics - Doc Answer Sheet
Business Ethics - Doc Answer Sheet
Business Ethics - Doc Answer Sheet
Q1
governments, and making our society as a whole ethical in the way it treats everyone.
What is Ethics?
Simply stated, ethics refers to standards of behavior that tell us how human beings
ought to act in the many situations in which they find themselves-as friends, parents,
children, citizens, businesspeople, teachers, professionals, and so on.
It is helpful to identify what ethics is NOT:
1 Ethics is not the same as feelings. Feelings provide important information for our
ethical choices. Some people have highly developed habits that make them feel bad
when they do something wrong, but many people feel good even though they are
doing something wrong. And often our feelings will tell us it is uncomfortable to do the
right thing if it is hard.
2 Ethics is not religion. Many people are not religious, but ethics applies to everyone.
Most religions do advocate high ethical standards but sometimes do not address all
the types of problems we face.
3 Ethics is not following the law. A good system of law does incorporate many ethical
standards, but law can deviate from what is ethical. Law can become ethically corrupt,
as some totalitarian regimes have made it. Law can be a function of power alone and
designed to serve the interests of narrow groups. Law may have a difficult time
designing or enforcing standards in some important areas, and may be slow to
address new problems.
4 Ethics is not following culturally accepted norms. Some cultures are quite ethical,
but others become corrupt -or blind to certain ethical concerns (as the United States
was to slavery before the Civil War). "When in Rome, do as the Romans do" is not a
satisfactory ethical standard.
5 Ethics is not science. Social and natural science can provide important data to help
us make better ethical choices. But science alone does not tell us what we ought to
do. Science may provide an explanation for what humans are like. But ethics provides
reasons for how humans ought to act. And just because something is scientifically or
technologically possible, it may not be ethical to do it.
Why Identifying Ethical Standards is Hard
There are two fundamental problems in identifying the ethical standards we are to
follow:
1. On what do we base our ethical standards?
2. How do those standards get applied to specific situations we face?
If our ethics are not based on feelings, religion, law, accepted social practice, or
science, what are they based on? Many philosophers and ethicists have helped us
answer this critical question. They have suggested at least five different sources of
ethical standards we should use.
Five Sources of Ethical Standards
The Utilitarian Approach
Some ethicists emphasize that the ethical action is the one that provides the most
good or does the least harm, or, to put it another way, produces the greatest balance
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of good over harm. The ethical corporate action, then, is the one that produces the
greatest good and does the least harm for all who are affected-customers, employees,
shareholders, the community, and the environment. Ethical warfare balances the good
achieved in ending terrorism with the harm done to all parties through death, injuries,
and destruction. The utilitarian approach deals with consequences; it tries both to
increase the good done and to reduce the harm done.
The Rights Approach
Other philosophers and ethicists suggest that the ethical action is the one that best
protects and respects the moral rights of those affected. This approach starts from the
belief that humans have a dignity based on their human nature per se or on their
ability to choose freely what they do with their lives. On the basis of such dignity, they
have a right to be treated as ends and not merely as means to other ends. The list of
moral rights -including the rights to make one's own choices about what kind of life to
lead, to be told the truth, not to be injured, to a degree of privacy, and so on-is widely
debated; some now argue that non-humans have rights, too. Also, it is often said that
rights imply duties-in particular, the duty to respect others' rights.
The Fairness or Justice Approach
Aristotle and other Greek philosophers have contributed the idea that all equals
should be treated equally. Today we use this idea to say that ethical actions treat all
human beings equally-or if unequally, then fairly based on some standard that is
defensible. We pay people more based on their harder work or the greater amount
that they contribute to an organization, and say that is fair. But there is a debate over
CEO salaries that are hundreds of times larger than the pay of others; many ask
whether the huge disparity is based on a defensible standard or whether it is the
result of an imbalance of power and hence is unfair.
The Common Good Approach
The Greek philosophers have also contributed the notion that life in community is a
good in itself and our actions should contribute to that life. This approach suggests
that the interlocking relationships of society are the basis of ethical reasoning and
that respect and compassion for all others-especially the vulnerable-are requirements
of such reasoning. This approach also calls attention to the common conditions that
are important to the welfare of everyone. This may be a system of laws, effective
police and fire departments, health care, a public educational system, or even public
recreational areas.
The Virtue Approach
A very ancient approach to ethics is that ethical actions ought to be consistent with
certain ideal virtues that provide for the full development of our humanity. These
virtues are dispositions and habits that enable us to act according to the highest
potential of our character and on behalf of values like truth and beauty. Honesty,
courage, compassion, generosity, tolerance, love, fidelity, integrity, fairness, selfcontrol, and prudence are all examples of virtues. Virtue ethics asks of any action,
"What kind of person will I become if I do this?" or "Is this action consistent with my
acting at my best?"
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7. Even if not everyone gets all they want, will everyone's rights and dignity still be
respected?
Rights Approach: The ethical action is the one that most dutifully respects the rights
of all affected.
8. Which option is fair to all stakeholders?
Fairness or Justice Approach: The ethical action is the one that treats people equally,
or if unequally, that treats people proportionately and fairly.
9. Which option would help all participate more fully in the life we share as a family,
community, society?
Common Good Approach: The ethical action is the one that contributes most to the
achievement of a quality common life together.
10. Would you want to become the sort of person who acts this way (e.g., a person of
courage or compassion)?
Virtue Approach: The ethical action is the one that embodies the habits and values of
humans at their best.
Make a Decision and Test It
11. Considering all these perspectives, which of the options is the right or best thing
to do?
12. If you told someone you respect why you chose this option, what would that
person say? If you had to explain your decision on television, would you be
comfortable doing so?
Act, Then Reflect on the Decision Later
13. Implement your decision. How did it turn out for all concerned? If you had it to do
over again, what would you do differently?
====================================================
==
IN BUSINESS ORGANIZATION, THE PEOPLE TAKE AN ORDINARY/ REGULAR
DECISION
AND PUT IT THROUGH THE ETHICS FILTER.
Ethics Filters
Until now we have been discussing a generic decision model similar to those taught in
every business school and management training program. But our concern is not just
decision making; it is ethical decision making.
The ethical component of the decision making process takes the form of a set of
"filters". Their purpose is to separate the sought after elements from their containing
environment.
At key steps in the process the decision maker can stop and run his/her considerations
through these filters and thereby separate the ethical conations from the remainder of
the decision. This ensures that the ethical issues imbedded in the decision can be
given consideration.
In their academic form, the language for these filters is too complex and academic for
most employees. In simplifying the process we risked losing some of the finer points
but dramatically increased the utility of the ethics filters process.
To make it easy to understand and apply these ethics filters we have adapted to
mnemonic word PLUS.
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1 P = Policies
Is it consistent with my organization's policies, procedures and guidelines?
2 L= Legal
Is it acceptable under the applicable laws and regulations?
3 U = Universal
Does it conform to the universal principles/values my organization has adopted?
4 S= Self
5 Does it satisfy my personal definition of right, good and fair?
PLUS presumes effective communication with all employees so there is a common
understanding of:
1 the organization's policies and procedures as they apply to the situation.
2 the applicable laws and regulations.
3 the agreed to set of "universal" values - in this case Empathy, Patience, Integrity,
Courage (EPIC)
4 the individual's sense of right, fair and good springing from their personal values
set.
PLUS also presumes a formal mechanism, provided by the organization, to allow
employees access to a definitive interpretation of the policies, laws and universal
values when their own knowledge of these PLUS factors is insufficient for them to
make the decision with a high level of confidence.
The PLUS filters work as an integral part of steps 1, 3 and 6 of the decision making
process. The decision maker applies the four PLUS filters to determine if the ethical
component(s) of the decision are being surfaced/addressed/satisfied.
1 Step 1
2 Define the problem (PLUS surface the ethical issues)
3 Does the existing situation violate any of the PLUS considerations?
4 Step 2
5 Identify available alternative solutions to the problem
6 Step 3
7 Evaluate the identified alternatives (PLUS assess their ethical impact)
8 Will the alternative I am considering resolve the PLUS violations?
9 Will the alternative being considered create any new PLUS considerations?
10 Are the ethical trade-offs acceptable?
11 Step 4
12 Make the decision
13 Step 5
14 Implement the decision
15 Step 6
16 Evaluate the decision (PLUS surface any remaining/new ethical issues)
17 Does the resultant situation resolve the earlier PLUS considerations?
18 Are there any new PLUS considerations to be addressed?
The user should realize that the PLUS filters do not guarantee an ethical decision.
They merely ensure that the ethical components of the situation will be surfaced so
that they might be considered.
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While PLUS suggests a process for assessing the ethical impact of a decision,
ultimately whether or not the decision meets the ethical standards of the organization
or the individual decision maker is a matter of personal responsibility. After all, ethics
is about choices.
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Q2
CONS
OF THIS
STATEMENT
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-sometimes big business focus too much on finance and less on human resources
-Sometimes big business try to go for bigger profit at the cost of the
consumer--some kind of exploitation.
- sometimes pay very little attention to the local community needs.
-sometimes exploits the workers.etc
(b) Equality, justices and a respect for rights are characteristics of the
American Economic System. Would you agree or disagree with this
statement? Why?
AnswerThe American economic system is a capitalist, free-market system, benefiting from
the size and uniformity of the market, and resulting from its social and cultural
systems. It is very competitive when scale matters, such as large industries, and often
very creative in new industries. But with the relatively lowly educated American
population, especially in matters of selling to other cultures, America will struggle to
compete internationally.
The American economic system has many characteristics that are reasons for
optimism. Here are three:
Ingenuity
No matter what some critics assert about "an America that's changed forever" or "an
America on the verge of Armageddon," the U.S. remains one of the freest, fairest
nations in the world -- and this has led to wave after wave of innovation. Critics speak
of an America in the current and future decades not being conducive to business
start-ups and entrepreneurs. Tell that to the hundreds of thousands of foreign
citizens/businessowners who would jump at the chance at U.S. citizenship. This
country will continue to attract talented, industrious, enterprising people from abroad
and others pursuing their dreams, and many of these individuals will contribute to the
innovation that will revitalize the U.S. economy.
Resiliency
Another characteristic you can trace across centuries is the American economy's
ability to adapt, reorganize and find new engines of growth. The early period of
mechanization was supposed to lead to economic decline because all the local
craftsmen who made things by hand were displaced. The rise of Japan's electronics
industry in the 1960s and 1970s was supposed to do the same because the U.S.
couldn't possibly survive without a domestic TV and radio manufacturing sector. Now
it's the rise of China, India and other emerging nations that's supposed to lead to the
great American decline. But investors will carefully note that during each period of
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structural change, the U.S economy adapted and retooled, workers retrained and new
sectors were created where Americans performed value-added jobs.
Job Mobility
Another overlooked advantaged -- perhaps because the current recession has reduced
its prevalence -- concerns job mobility. Among industrialized economies, U.S. workers
are highly mobile. Of course, that has a big downside: Unless workers have a contract,
companies can eliminate jobs quickly. But the reverse is also true: Employees can
secure employment in better/more suitable positions more quickly than they can in
many European economies. True, job scarcity and the excruciatingly high U.S.
unemployment rate have reduced this natural flow of talent to its highest and best
use. But that flow will increase again once the economy starts adding jobs in a
sustained way.
The new U.S. health care system could further unleash this talent pool. Many
professionals, blue-collar employees and others stay in their current job, not because
it's their preference but because they get employer-provided health care. However,
because the new system gives everyone the opportunity to buy health insurance at an
affordable price, regardless of preexisting conditions, workers will likely feel much
freer to pursue the most suitable employment. That could unlock creativity, increase
productivity and spark a new wave of business start-ups.
So when you hear the dueling diatribes on 24-hour cable news shows, it's worth
remembering that more people still want to come to the U.S. than to leave it. And that
most international investors still consider the country an excellent place to invest their
money. The reason is the American economic system itself.
Equality, justices and a respect for rights are provided by the economic system.
BUT OFTEN THEY ARE MIS-REPRESENTED AND MIS-USED BY PEOPLE FROM
BOTH SIDES OF THE EQUATION.
Q3(a) Do you agree with the claims that (i) future generations have no
rights, and (ii) the future generations to which we have obligations
actually include only the generation that will immediately succeed us?
Explain your answer. If you do not agree with these claims, state your
own views and provide arguments to support them
Answer- Future persons not have right claims
Because
The Re-Population Paradox.(8)
The first objection must be treated briefly, though not because it can be easily and
quickly disposed of.
-argues that any effective attempts to "improve" the living conditions of the remote
future will so alter "genetic shuffle" of future meetings, matings, and births, that such
policies will, in fact, "repopulate" that future with different individuals. Accordingly,
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since none of the individuals in "Future A" will exist in ("improved") "Future B," no
individual will be benefited ("made better off") as a result of this policy. It follows that
since any attempts to "improve the future" will, strictly speaking, "benefit" no one,
there are no obligations to future generations.(9)
And if there are no duties to the future, it follows that future generations have no
rights
The Time-Span Argument against the rights-claims of posterity objects that duties and
rights cannot meaningfully be said to hold over long periods of time and between
persons with non-concurrent lives, who are thus denied reciprocal communication and
interaction. But with this argument, time itself is the foremost reason for this moral
disconnection.
Do long durations of time erode moral responsibilities? For the moment, consider,
causal and epistemic connections through time, rather than moral connections.
According to informed scientific opinion, some technological innovations and social
policies enacted during the last few decades, and others now being contemplated,
may result in both short-term advantages for some of our contemporaries, and
devastating long-range effects for our successors. Such long-term effects, which are
tied to their remote causes by quiet, continuing, and accumulating processes, are
called, by ecologists, "time-lag effects." Consider some possible cases: First, the
manufacture of thousands of nuclear weapons, and the decision to invest heavily in
nuclear fission energy, has resulted in the production of highly toxic, long-lasting,
radioactive by-products. Some of these substances (i.e., the actinides) must then be
isolated from the biosphere for hundreds of thousands of years.(12)
If, in the intervening time, a geological event should cause the release of these
materials into the biosphere, the results could be catastrophic. The "time-lag"
between the disposal of these substances and their possible reappearance is unknown
and unknowable.
The "No-Claims" Argument. Another common objection to the claim that future
generations have rights, is that posterity, being "merely potential," is incapable of
claiming these alleged rights. And without claims, it is argued, there can be no rights.
The Non-Actuality Argument. Among the most common objections against the rights
of future generations is the contention that since posterity does not exist now, it
makes no sense to speak of posterity having rights now.
The ascription of rights is properly to be made to actual persons -- not possible
persons. Since future generations can only be viewed as consisting of possible
persons, from any vantage point at which the description "future generations" is
applicable, it would follow . . . that rights cannot properly be ascribed to future
generations."(18)
The "non-actuality argument" might be subdivided into two interpretations: (a) the
charge that posterity is "merely imaginary," and (b) the contention that posterity's
rights apply only in posterity's own time. We will examine these points in order.
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(b) Discuss the arguments for and against the 3 main theories of a
producers duties to the customer. In your judgement, which theory is most
adequate? Are there any marketing areas where one theory is more
appropriate than the others?
Answer- Producers' Duties: Producers are obliged to place only safe products on the
market. Within the limits of their respective activities, producers shall:
1.provide consumers with information to enable them to assess the risks inherent in a
product throughout the normal or reasonably foreseeable period of its use, where such
risks are not immediately obvious without adequate warnings, and to take precautions
against those risks. Provision of such warnings does not, however, exempt any person
from compliance with the other requirements in this Directive; and
2.adopt measures commensurate with the characteristics of the products that they
supply, to enable consumers to be informed of risks that these products might present
and to take appropriate action, including, if necessary, withdrawing the product in
question from the market.
3.The measures include, for example, whenever appropriate:
*marking of the products or product batches in such a way that they can be
identified;
*sample testing of marketed products; and
*investigating complaints made and keeping distributors informed of such
monitoring.
Pros
-these producer's duties helps the consumer
1. the right to safety;
2. the right to be informed;
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The producers can be partner in protecting the consumer rightsby adopting the
following responsibility :
- Quality of Material;
- Safety and precision of material;
- After sales service;
- Training if needed;
- Warranty and Gauranty to be properly implemented;
- Insurance against non working or accident;
- Businesses and Producers have responsibilities
RIGHT to expect laws and regulations to be essential and efficient
-RESPONSIBILITY to provide safe products and services, information choice and a fair
hearing
-RESPONSIBILITY to practice and promote ethical marketplace behavior
Are there any marketing areas where one theory is more appropriate than other?
3.The measures include, for example, whenever appropriate:
*marking of the products or product batches in such a way that they can be
identified;
*sample testing of marketed products; and
*investigating complaints made and keeping distributors informed of such
monitoring.
THIS THEORY CAN BE USED WITH THE MARKETING APPLICATIONS,
LIKE
-new product development.
-customer service.
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However, Jesus, being more developed ethically because He always operated out of
eternal/universal principles of virtue, brought them to a point of consensus that made
each of them agree to walk away from the situation. He told them, whoever of you is
without sin, you cast the first stone at her (John 8:7). From the oldest to the youngest,
they all walked away. This was a kind of consensus. He even got the woman to walk
away by showing her that her level of moral standards failed her - "Woman, where
are your accusers? Does no man accuse you?" (John 8:10) She probably was
motivated only by stage one, level one: she did not want to be caught and punished.
In that day, violating marriage laws meant death by stoning.
In stage six, " universal moral principles of orientation" a person who has developed
to this level behaves out of a moral certainty because he is sure that the principles
he follows are reasonable, universal and consistent (Velasquez, 39). Usually on this
level, the person acts wholly out of these beliefs and is able to analyze and reason
out of this level of moral development. Most people guess that only moral superstars
of the human race are able to attain this. However, I guess along with people who
have died for their principles, there are many unknown heroes who act in a daily way
out of their convictions and ability to act in universal, rationale ways in spite of what
it may cost them. If we are looking, we have seen this over and over again during
crisis situations all throughout history. An example of this, for Christians, is shown
when Jesus is dying on the cross. He asks His Father to forgive those who were
crucifying Him: Forgive them Father, for they know not what they do (Luke 23:34). He
chose this because He chose to treat "people as a (eternal) end in
themselves"(Velasquez, 39). He saw from His Father's perspective that this was
"reasonable, universal and consistent" with what He was sent here to do.
Q5(a) In view of the contractual agreement that every employee makes to
be loyal to the employer, do you think whistleblowing is ever morally
justified? Explain.
Answer-''In view of contractual agreement that every employee makes to be loyal to
the Employer''
THIS IS NOT TRUE. THE CONTRACT IS NOT FOR LOYALTY
The employment relationship is a legal notion widely used in countries around
the world to refer to the relationship between a person called an "employee"
(frequently referred to as "a worker") and an "employer", for whom the employee
performs work under certain conditions in return for remuneration. It is through the
employment relationship, however defined, that reciprocal rights and obligations are
created between the employee and the employer.
The employment relationship has been, and continues to be, the main vehicle
through which workers gain access to the rights and benefits associated with
employment in the areas of labour law and social security. It is the key point of
reference for determining the nature and extent of employers' rights and obligations
towards their workers.
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11.
12.
13.
14.
15.
16.
17.
18.
19.
Can be fired
20.
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use information gained at work for personal gain or disclose the employer's
confidential information unless it is an act of whistleblowing.
fail to report misconduct by other employees
do anything in their free time to damage the reputation of their employer. Many
employees have been fired for committing crimes that were unrelated to their job.
try to take away an employer's customers for when they go into business for
themselves.
COMPENSATION PACKAGE FROM THE EMPLOYEES' PERSPECTIVE
Compensation is typically among the first things potential employees consider
when looking for employment. After all, for employees, compensation is the
equivalent not to how they are paid but, ultimately, to how they are valued.
It's easy to think "dollars per hour" when thinking about compensation.
Successful compensation packages, however, are more like a total rewards
system, containing non-monetary, direct and indirect elementsNon-Monetary
Compensation can include any benefit an employee receives from an employer
or job that does not involve tangible value. This includes career and social
rewards such as job security, flexible hours and opportunity for growth, praise
and recognition, task enjoyment and friendships.
Direct compensation is an employee's base wage. It can be an annual salary,
hourly wage or any performancebased pay that an employee receives, such
as profit-sharing bonuses. Indirect Compensation is far more varied, including
everything from legally required public protection programs such as Social
Security to health insurance, retirement programs, paid leave, child care or
housing.
Employers have a wide variety of compensation elements from which to choose.
By combining many of these compensation alternatives, progressive mangers
can create compensation packages that are as individual as the employees who
receive them. The general consensus of recent studies is that pay should be tied
to performance to be effective. However, with traditional BUSINESS operations,
that is not easily done. Business performance can be affected by many factors
over which employees have no influence, specificallyEXTERNAL
ENVIRONMENT . Successful managers must search for things employees
influence and base performance objectives on these areas. Your operation may
benefit from the following: tenure bonuses for long-time employees, equipment
repair incentives to encourage good equipment maintenance, or bonuses for
arriving to work on time.
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The more production information data your business has, the easier this is to
accomplish.
Direct Compensation Alternatives
Basic Pay: Cash wage paid to the employee. Because paying a wage is a
standard practice, the competitive advantage can only come by paying a higher
amount.
Incentive Pay: A bonus paid when specified performance objectives are met.
May inspire employees to set and achieve a higher performance level and is an
excellent motivator to accomplish BUSINESS goals
Stock Options: A right to buy a piece of the business which may be given to an
employee to reward excellent service. An employee who owns a share of the
business, is far more likely to go the extra mile for the operation. Bonuses: A gift
given occasionally to reward exceptional performance or for special occasions.
Bonuses can show an employer appreciates his/her employees and ensures that
good performance or special events are rewarded.
(b) In your judgment, is it wrong, from an ethical point of view, for the
auto companies to submit plans for an automobile to China? Explain
your answer.
Answer-
Q6
Answer-
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types of pollution, the one that has existed longer than any other is water
pollution. Its consequences are readily seen when pollutants reach groundwater
reservoirs, creating serious health hazards to people drinking the water. The
current version of the Federal Clean Water Act is another tool.
environmental law: an overview
THE NATIONAL ENVIRONMENTAL POLICY ACT [NEPA]
THE ENVIRONMENTAL QUALITY IMPROVEMENT ACT
THE NATIONAL ENVIRONMENTAL EDUCATION ACT
THE ENVIRONMENTAL PROTECTION AGENCY [EPA]
were passed in 1970.
The main objective of these federal enactments was to assure that the
environment be protected against both public and private actions that failed to
take account of costs or harms inflicted on the eco-system.
The EPA is supposed to monitor and analyze the environment, conduct research,
and work closely with state and local governments to devise pollution control
policies. NEPA has been described as one of Congress's most far reaching
environmental legislation ever passed. The basic purpose of NEPA is to force
governmental agencies to consider the effects of their decisions on the
environment.
State laws also reflect the same concerns and common law actions allow
adversely affected property owners to seek a judicial remedy for environmental
harms.
THESE LAWS DO NOT violate people right to liberty and right to property.
ON THE CONTRARY, THESE LAWS SAVES THE LIVES OF MANY
AND ALSO THE FUTURE GENERATION.
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