Business Ethics

Question 1

6 steps of resolving ethical dilemma

Answer 1

1. Gather all the facts and familiarize yourself with them
2. List information you would like to have and list any assumptions
3. List each person involved and any concerns they may face
4. Develop list of resolutions
5. List costs, legalities, and impacts of each resolution
6. Make a recommendation

Question 2

Divine Command Theory

Answer 2

Making a decision based on religion

Question 3

Natural Law

Answer 3

Certain rights and conduct controlled by God and no one else

Question 4

Ethical Egoism Theory

Answer 4

Making a decision that is in the best interest of one’s self

Question 5

Utilitarian Theory

Answer 5

Making a decision that is the greatest good for the greatest number of people. Cost/benefit analysis

Question 6

Categorical Imperative

Answer 6

Making a decision on the thought of what would be the consequences if everyone in society acted this way

Question 7

Contractarians and Justice

Answer 7

What rules would you impose if you were prince or pauper? Veil of ignorance

Question 8

Rights Theory

Answer 8

Everyone has a set of rights and it’s the governments job to protect them

Question 9

Moral Relativists

Answer 9

Derived subjectively from the individual experiences of each person

Question 10

Virtue Ethics

Answer 10

An acquired set of virtues used to make decisions

Question 11

Peter Drucker

Answer 11

Above all do no harm

Question 12

Laura Nash 12 questions

Answer 12

Used to evaluate an ethical dilemma

Question 13

Peale and Blanchard

Answer 13

Is it legal? Is it balanced? How does it make me feel?

Question 14

Warren Buffett

Answer 14

What would you do if your actions was on the front page on the newspaper for everyone to see

Question 15

Wall Street

Answer 15

Am I in compliance with the law? How does it affect shareholders? What are the short and long term consequences?

Question 16

Adelphia Case

Answer 16

Cable company who went bankrupt in 2002 for internal corruption. Warren Buffett, Utilitarian theory

Question 17

Beechnut Case

Answer 17

Claimed their apple juice was made with real apples but it was really made with syrup to save money for the company. Warren Buffett, Wall Street Journal

Question 18

NASA Challenger Case

Answer 18

Sent students and teachers up then the ship exploded because they refused to wait for a warmer day. Virtue ethics, ethical egoism, Wall street journal

Question 19

Enron Case

Answer 19

Engaged in earnings management that bankrupted the company

Question 20

Penn State Case

Answer 20

Officials and administration acted inappropriately when knowledge of child abuse was received

Question 21

Ice T Case

Answer 21

Time Warner signed Ice-T who released an album with “cop killer” on it. At first Time Warner backed him but then later they decided to split ways with him

Question 22

Guns and safety Case

Answer 22

Mass shootings began then safety and gun regulations started to be a topic

Question 23

Fannie Mae and Freddie Mac Case

Answer 23

Would give high risk loans and then fudge accounting

Question 24

Employer Control Case

Answer 24

A debate of whether or not employers are getting too much access into employees lives

Question 25

Bad Apples Case

Answer 25

IDEK. Just look over the powerpoint

Question 26

WorldCom Case

Answer 26

Bought long distance phone network access at wholesale price then sell it to consumers at a cheaper price

Question 27

Arthur Anderson Case

Answer 27

An auditor for many major companies at the time. Performed Mark to Market accounting which is valuing assets based off predictions of future prices rather than previous ones

Question 28

HealthSouth Case

Answer 28

Employee was being bullied into manipulating financial reports to reflect the numbers they promised to investors

Question 29

Tyco Case

Answer 29

Key Employee Loan Program which would allow employees to take out little to no interest loans which were easy to manipulate. They would take out more than needed to truly help with what they needed then would use the rest for personal wants

Question 30

Ann Hopkins Case

Answer 30

Ann was trying to become partner of Price Waterhouse. Was first put on hold then was told to act more feminine. She was then told she would not become a partner, resigned, then filed a discrimination complaint. Contractarians and justice, Rights theory, Peter Drucker

Question 31

Tylenol Case

Answer 31

Tylenol was leading to liver damage. The number of pediatric poisonings from Tylenol has more than tripled. McNeil knew but did nothing to change it. Utilitarian Theory, Contractarians and Justice, Peter Drucker

Question 32

Ford Pinto Case

Answer 32

Had to place gas tank behind the rear axel which did not meet the tests they performed but other models did so they continued with production. There was an option to fix it at $4 per car but they declined. Ford would end up having to pay $50 million for deaths and injuries caused by their car. Moral relativism, utilitarian, ethical egoism

Question 33

Frozen Cake Case

Answer 33

Frozen coke was being offered in a Burger King in VA. Was not doing well so Fischer told employees to buy the value meals and then Berryman gave cash to boys and girls clubs saying if they did their homework they could go get a value meal. They saw sales increase and Burger king invested then failed. Utilitarian, Wall Street Journal

Question 34

Protected Classes of Title VII

Answer 34

Forbids discrimination in employment because of race, color, religion, sex, or national origin

Question 35

On the Job Fetal Injuries

Answer 35

Johnson Controls is battery manufacturer which contained lead. Policy there said pregnant women can not be placed in a position around this lead. Was found discriminatory

Question 36

Religious Accommodations

Answer 36

An employer must take reasonable steps to prevent harassment however bear de minimis cost to accommodate religious differences

Question 37

National Origin Discrimination

Answer 37

Most cases are based on language and/or appearance

Question 38

Minimum to show national origin discrimination

Answer 38

Disparate treatment and disparate impact

Question 39

Disparate Treatment

Answer 39

Exists where an employer intentionally treats people less favorably than others based on race, gender, religion, or national origin

Question 40

Disparate Impact

Answer 40

Exists where an employer uses legitimate employment standards that work a heavier burden on a protected class than others

Question 41

ADA/ADAA

Answer 41

Forbids discrimination in employment public accommodations, public services, transportation, and telecommunications against the disabled

Question 42

ADA/ADAA Protected

Answer 42

Blindness, hearing loss, anatomical loss, alcoholism, drug use, disfiguring scars, HIV/AIDS, obesity

Question 43

ADA/ADAA Not Protected

Answer 43

homosexuality, bisexuality, gambling, exhibitionism, kleptomania, pyromania

Question 44

ADEA Claim

Answer 44

Plaintiff must show they are above 40 years older, qualified for the position, and not hired or terminated/demoted while a younger person received more favorable treatment

Question 45

Who should develop code of ethics?

Answer 45

President, board of directors, CEO, legal counsel

Question 46

Codes of Conduct Forms

Answer 46

1. Code of ethics 2. Code of conduct 3. Statement of values

Question 47

BFOQ (Bona Fide Occupational Qualification) Defense

Answer 47

1. Proof of nexus between the classification and job performance, and will the classification affect the job performance? 2. Necessity of the classification for successful performance and mere customer preference 3. That the job performance affected by the classification is the essence of the employer's business operation

Question 48

Confronting a Situation

Answer 48

1. Determine facts 2. If you don't know the facts, or can't know the facts, present the issue to those involved and affected 3. Always give the opportunity for self remedy 4. Don't fear the fallout and the hassle

Question 49

Product Liability

Answer 49

1. Product defective 2. Because of defect, product unreasonably dangerous 3.Defect proximate cause or substantial factor in injury