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business
business ethics
Business Ethics A Textbook With Cases 7th Edition William H. Shaw - Solutions
Was Pettit’s behavior “unprofessional”?Wasit“immoral”?Diditshowa“lackof fitness”toteach?Explainhowyouunder standthetermsinquotationmarks.
Explainwhether (andwhy) youagreeor disagreewiththefollowingargument:“If employeeshavearighttokeepgunsinthe parkinglot, thentheyalsohavearight to bringthemintoworkplace.Afterall,we’re only talking about licensed, responsible owners, and the same rationale applies:An employeemight need aweapon
Whatwoulda libertariansayabout this issue?What considerationswouldautili tarianhave to take intoaccount?What conclusionmightheorshedraw?
DoyouagreewiththeNRAthat ifcom paniesbanguns fromtheirparking lots,this restrictionwould take “awrecking ball totheSecondAmendment”ornullify the right of people tohaveweapons for self-defense?Explainwhyorwhynot. In yourview,havegunadvocatesbeenguilty of politicizing this issue?Do you think
Inyourview,doemployeeshaveeithera moral or a legal right toparkcarswith guns intheminthecompanyparkinglot?If so,whatabout thepropertyrightsand safetyconcernsofemployers?Ifemployees don’thavethisright,woulditbegoodpol icy for companies toallowthemtostow guns intheircarsanyway?Docompanies have good
Assume that either the SecondAmend mentor state lawgivesyoua legal right tokeepagun inyour car.Doyoualso have amoral right todo this?Doyou have amoral, not onlya legal, right to ownagun?Doyouhaveeitheramoral oralegalrighttoparkacarwithaloaded gun inapublicparking lot regardlessof what
In1914ThomasEdisonhadapolicyof employing“nopersonwhosmokedcigar ettes.”Issuchapolicydiscriminatory?Is itreasonable?Todaysomecompaniesban employeesevenfromsmokingintheircars inthecompanyparkinglot. Isthis fairor reasonable?
SupposethatwhatbothersDarleneisnot oldsmokebutthesmellofAlice’sperfume or Frank’s body odor?Howwould this changethecase?
Most people thesedaysbelieve that em ployees have a right to a smoke-free workarea,butdotheyalsohavearight toaworkplace free of the odor of old smoke—or of any other odors they dislike? If so, does this right justifyDar lene’s refusal todo the report?Does it makeadifferencehowimportant the re
DoFrankandAlicehavearighttosmokein theirofficeifnooneisthere?Shouldcom paniesmakeanefforttoaccommodatethe needsofsmokers?Whatpolicyonsmoking wouldyourecommendtoRedwoodAssoci ates? If, as inthis case, state lawdoesn’t mandateit,areemployersmorallyrequired tobansmokingaltogetherinsidetheirfacil
Would Charles Renford be within his rightstodisciplineDarleneLambertforin subordination?ShouldheorderFrankand Alice tostopsmoking intheirofficealto gether, or isDarlene oversensitive?How would you handle this situation if you wereCharles? Is itpossible foremployers
Assume a CEO like Ralph Jenkins is legitimatelyworried that anemployee is making damaging statements about the company.Howshould theCEOhandle the situation? Is discharge or some sort ofdiscipline called for?Should thecom panyadoptaformalpolicyregardingem ployee speech? If so,what policywould
Isthecompanyright tobeworriedabout whatMaryDaviswritesorsays,or isthe boardofdirectorsexaggeratingthepoten tialharmtoWhitewaterofherdiscussing theseissues?
WhatdoyouthinkMaryDavisought to do?Whatmoralconsiderationsshouldshe weigh?Does shehaveconflictingobliga tions?Ifso,whatarethey?
Isyouranswer toquestion1affectedby whether youagree or disagreewith the viewsMaryDavisexpressed?
DoyouthinkMaryDavisactedirrespon siblyordisloyally?DoesWhitewaterhavea legitimateconcernaboutherspeakingout on this issue?Does the companyhave a righttoabridgeherfreedomofexpression?
Al Smetana andRayburnUnlimitedare committed tohonesty and integrity (the upholdingofwhichseemstosupportdis missal)andtheintrinsicworthofeachin dividual (which might argue for more lenienttreatment).Arethesevaluesincon flict?WhatwouldyoudoifyouwereAl?
BecauseAl fired the employeewhovio lated the company’s computer system, woulditbe inconsistentorunfairofhim totreatCraiganydifferently?
Was it right forAl tohaveaskedCraig about his computer usage in the first place?Didhe violateCraig’s privacyor civil liberties?
Doesthefact thatCraigisavaluedmem berof thecompanywithalongrecordof servicemakeadifference?Orthatheisa personal friendofAl’s?
IsCraigLindley’sbehaviorasignofsome psychological problemthatRayburnUn limited shouldhelphimovercome, per haps with personal counseling? Or is dismissal called for? ShouldAl Smetana fireCraigtosendamessagetootherem ployeesnot tomisusecompanytimeand resources?
DoesTomhaveamoralobligationtodis closehismedical conditiontoCarla—and, ifso,atwhatpoint?Supposeajobapplicant hasachronic,potentiallydebilitatingmedi cal condition.Shouldheorshereveal that factbeforebeinghired?Woulditbewrong nottomentionthediseaseiftheinterviewer
Shouldcompaniesdevelopprogramsorpol iciesthatdealspecificallywithAIDS?Ifso, what characteristics shouldtheyhave?Or shouldtheydealwiththeproblemonlyona case-by-case basis? Should large corpora tions developAIDS-awareness programs?Or shouldAIDSbe treatednodifferently thananyotherdisease?
Suppose TomhadAIDS.What should Carlado? Isanemployee’sHIVstatusa job-relatedissue?Inparticular, is itafac tor Carla should consider in deciding whether topromoteTom?What part, if any,shouldtheattitudesofTom’scowor kersplayinCarla’sdecision?
Dowehaveamoralobligationtosaveold redwoodforests?Canaforesthaveeither moralorlegalrights?Doesanold-growth foresthavevalue inandof itself,or is its valueonlyafunctionofhumaninterests?Howvaluable isasmall but endangered speciessuchasthemurrelet?
Is itmorallypermissible forprivateown erstodoastheywishwiththetimberland they own? Explain why or why not.What’s your assessment ofHurwitz? Is hearobberbaronorasociallyresponsible businessperson,orsomethinginbetween?
Does an ancient redwood forest have valueother thanitseconomiconeaspo tential lumber? If so,what is this value, andhowis it tobeweighedagainst the interests of a company likeMaxxam?Areredwoodsmoreimportant thanjobs?
Isitmoralorenvironmentallyresponsible todriveanSUV?WhatwouldJesusdrive?
IsFordMotorCompanysimplyrespond ingtoconsumerdemandforlargevehicles, or is it helping to shape and encourage thatdemand?
Assess the argument that people in the thirdworldshould learn fromthe errors oftheWestandseekdevelopmentwithout pollution. Should there be uniform, glo bal environmental standards, or should pollution-control standards be lower for less-developedcountries?
Dohumanbeingshaveamoral right toa livableenvironment?Toanonpolluteden vironment?Itmightbearguedthat ifpeo pleinthe“valleyofdeath’’don’tcomplain anddon’twishtomove, thentheyaccept therisksof livingthereandthepolluters arenot violating their rights.Assess this argument.
Shouldthe thirdworldhavemorepollu tion,asLawrenceSummersargues?Assess hisargument thatdirty industries should movetopoorerandless-pollutedareas.
Whatattitudesandvaluesonthepartof businessandothersleadtothecreationof areaslikethe“valleyofdeath’’?
Doindividualsinsidethecompany,nowor inthepast,bearresponsibilityforcausing theenvironmentaldamageatHerculaneum, orisitonlythecompanyasawhole?Isthat responsibilitysharedbyanyoneoutsidethe company?Shouldfamilieswhomovedto Herculaneumhaveknownbetter?
Identifythevaluesanddescribetheattitudes thathavecontributedtopollutionproblems likethoseatHerculaneum.Howwouldyou feelifyoulivedinHerculaneum?
When it comes to life-saving drugs, do pharmaceutical companies have amoral obligation to make them available in poorcountriesatlittleornocost?Explain whyorwhynot.Whatabouteffectivebut non-life-savingdrugs likeranolazine?
Isitethicalforcompaniestodeclinetosell a useful drug like ranolazine in a poor country because they can make more moneymarketingitelsewhere?
Dodrugcompanieshaveanobligationto makenewdrugsavailabletopatientswho wereinvolvedintheirdevelopment,either hereoroverseas?Doesthesizeofthecom panymakeadifference?Whatwouldyou do if youwereDr.Lange?Whatobliga tions, ideals,andconsequencesshouldhe takeintoaccount?
Are the large drug companies guilty of pricegougingorofcharginganunfairor exploitative price for their products? In general, what factors should determine thepriceofdrugs?ShouldAmericansbe permitted to import drugs fromCanada orothercountries?
Given the nature of their product, do pharmaceuticalcompanieshaveethicalre sponsibilitiesthatothercorporationsdon’t have?Inyourview,arethelargeU.S.drug companiesgoodcorporatecitizens?
WhatareH.B.Fuller’smoralobligations inthiscase?What ideas,effects,andcon sequences are at stake?Haveanymoral rightsbeenviolated?Whatwouldautili tarianrecommend?AKantian?
WasLiebeckonly20percent responsible for her injuries?Doyouagreewith the amountofcompensatoryandpunitiveda mages that the juryawardedher? Ifnot, whatwouldhavebeenafairermonetary award?
McDonald’s claims thatmost consumers wouldprefer tohave theircoffee toohot thannothot enough.Afterall, if it’s too hot, theycanalwayswaitaminutebefore drinkingit.Supposethisistrue.Howdoes itaffectMcDonald’sresponsibilities?Given thatMcDonald’s servesmillions of cups
In serving hot coffee, didMcDonald’s act inamorally responsibleway?What ideals, obligations, and effects should it havetakenintoconsideration?
Onsafetymatters,shouldtheFDAorany regulatoryagencyerronthesideofover protection or underprotection?Has the FDA’s stance on breast implants been fairtowomenwhowouldlikebreastaug mentationbutcannotget it?Somepeople disapprove of cosmetic augmentationor believe it tobeafrivolousoperation.Do
Was theFDAjustifiedinplacingamora toriumon silicone breast implants and thenhaltingthemaltogether forcosmetic purposes?
ScottArmingdoubts thatbusinesseshave anobligationtosupport charitableorga nizations.Dothey?
WereBaytownand theother companies right to have withdrawn their support fromthe Boy Scouts? Is there anything wrongwithcompanies’ attempting toin fluencethepoliciesofanorganizationlike theScouts?
AreBaytown’sdirectorsoperatingwitha broadoranarrowconceptionof corpo rateresponsibility?
WhatdoyouthinkBaytownshoulddo?Explain your reasoning.What business factors are relevant to your decision?Whatmoral factors?
DoesNikehavea social responsibility to addressmattersofpublicconcernsuchas theworkingconditionsinitsoverseasoper ation?Ifitchoosestodoso,doesithavean obligationtomakeitsstatementsastruthful andaccurateasitcan?Underwhatcircum stances shouldcorporationsbeheld liable forthetruthoftheirpublicstatements?
Do corporations have the same moral rightsasindividualhumanbeings?Should theyhave the samepolitical rights? Is it morallypermissibletolimit thespeechof corporationsinwaysthatwouldbewrong ifappliedtothespeechof individual citi zens?If it ispermissible, is itgoodpublic policy?
ShouldcommercialspeechreceivelessFirst Amendmentprotectionthanothertypesof speech, or does this violate the rights of corporations?Explainyouranswer.
Wastheout-of-courtsettlementareason ableresolutionof thiscase?Whatwould havebeenthegoodorbadconsequences oftheSupremeCourt’sdecidinginNike’s favor?Of itsdecidinginKasky’sfavor?
Inthiscase,wasNikeengagedincommer cial speech,orwereitsstatementspolitical orsocialspeech?Whatdetermineswhether speechiscommercialornot?
Somepessimistssaythatbecausemostcom paniesdon’tmakesocialwelfareapriority, competitionwill ultimatelyundermine the effortsofcompanieslikeLeviStrausstoes tablishstandards.Assessthisargument.
IsLeviStrausssincereinitsprofessedcon cernforforeignworkers?IsNike?
Do corporations have a responsibility to monitor the conduct of the companies theydobusinesswith—inparticular, their contractorsandsuppliers?Dotheyhavea responsibility toavoiddoingbusiness in countriesthatareundemocratic,violatehu man rights, or permit exploitativework
WithregardtoLeviStrauss’sconductboth athomeandabroad,doesitmakesenseto talkabout thecompanyasamorallyre sponsibleagentwhoseactionscanbecriti callyassessed, or canweassessonly the actionsanddecisionsof individualhuman beingsinsidethecompany?
Assess theprosandconsofalawforbid dingAmericanhigh-techcompanies from assistingrepressiveforeigngovernments.
Inlightofthiscase,doyouthinkitmakes sensetotalkofacorporationlikeYahoo asamoralagent,orisitonlythepeoplein itwhocanbeproperlydescribedashaving moral responsibility?
Is JerryYang correct that the company had“nochoice”?Assuming thatYahoo was legally required todowhat it did, doesthat justifyitsconductmorally?
Inyourview,wasYahoorightorwrongto assistChineseauthorities?Whatwouldyou havedoneifyouwereinchargeofYahoo?
How typical are the attitudes that Sheehy reports? Does his description of a new work ethic tally with your own experiences?
IsoppositiontoWal-Mart’s expansiona legitimatepartof thepolitical processor is it unfair interferencewithourmarket systemandaviolationof thecompany’s rights?DoopponentsofWal-Mart have anyvalidconcerns?
Canaretailereverbecome toolargeand toopowerful?
Do you likeWal-Mart? Do you shop there? If so, howfrequently? Ifnot,why not?
Is your view of this case affected by whetheryoupersonallyfind pop-upadsannoying?
DoesGator’ssoftwareviolatetheright to privacyofPCowners?Wouldoutlawing Gator-like adware be a setback for the ideaof “fair use”?Would it violate the rightsofPCowners?
What,ifanything,shouldthepublishersdo about Gator? Is Gomes’s “free-speech”strategy likely towork?Howwouldyou dealwithGator ifyouownedapopular, expensive-to-runwebsite?
IsGatorguiltyofunfaircompetition?Has it violated the implicit rules of a free market,capitalisticsystem?Isitaparasite that shouldbeput out of business or a legitimatebusinessoperation?
IsGatorathreat tothebusiness interests of thepublishersandotherwebsiteown ers?If so,dotheyhavealegitimatecom plaintagainstGator?Or is thisacaseof big companies’ ganging up to thwart a smallerbusinessrival?
Is licensinganall-or-nothing issue?Or is it possible that although only licensed professionalsshouldbepermittedtoperform certainservices,paraprofessionalsandlay personscouldperformlessexpensivelybut equally competently other services now monopolizedbylicensedprofessionals?
FriedmanandothersviewtheAMAasa tradeunion,andtheybelievethatthehigh incomesofdoctorsareduemoretoartifi cialrestrictionsonthefreemarketthanto theinherentvalueof theirservices. Isthis anaccurateor fairpictureof themedical profession?
Does licensure make the market work moreor lesseffectively?Wouldyouagree that as long as consumers are provided accurate information, theyshouldbeper mittedtomaketheirownchoiceswithre gard to the services and products they purchase—evenwhenitcomestomedical care?Or is licensingnecessarytoprotect
Doyoubelievethat licensure inmedicine or anyother field isdesirable? Inwhich fields and under what circumstances?What standardswouldyouuse todeter minewherelicensureisneeded?
What explains the fact that licenses are requiredfor somanyoccupations?What doyouseeas theprosandconsofoccu pational licensureingeneral?Doesithave benefitsthatFriedmanoverlooked?
HowwouldalibertarianlikeNozickview povertyintheUnitedStates?Howplausi bledoyoufindthelibertarian’spreference forprivatecharityoverpublicassistance?
Whatmoralobligation, ifany,dowehave individually and as a society to reduce poverty? What steps could be taken?Whatroleshouldbusinessplay?
Whatarethecausesofpoverty?Arethey structuralorindividual?Howisone’san swertothisquestionlikelytoaffectone’s viewofthejusticeorinjusticeofpoverty?
Does theexistenceofpoverty imply that our socioeconomic system is unjust?Does theconcentrationofpovertyincer taingroupsmake itmoreunjust than it wouldbeotherwise?
Isgroundwaterapublicresource, theuse ofwhichisappropriateforsocietytoreg ulate?Or is it thepropertyof thosewho ownthe landtouseas theyseefit?Who hasthestrongestclaimongroundwater—theownersof the land fromwhich it is pumped, the original inhabitants of the area(that is, thelocal Indiantribes),
DoesNestlé’s pumping262milliongal lons of water per year fromSanctuary Springconstitute“reasonableuse”?Isthe companytreatingeither local residentsor theNative American tribes unfairly, or woulditbeunfair torestrictNestlé’suse ofwaterfromthespring?
“If ‘just compensation’ is paid, thenby definition thosewho lose their property cannot claimthat theyhavebeentreated unjustly.”Assessthisargument.Cancom pensationbe just if oneof theparties is unwillingtoaccept it?
Doyoubelieve that eminentdomainisa morally legitimate right of government?Explainwhyorwhynot.
AretownssuchasNewLondonandSalina pursuingwise, beneficial, andprogressive socialpolicies,oraretheiractionssocially harmfulandbiasedagainstordinarywork ingpeopleandsmall-businessowners?
IsNewLondontreatingSusetteKeloand her neighbors fairly?Assuming that the proposeddevelopmentwillhelptorevital izeNewLondon, is it just for thecityto appropriateprivatepropertyaroundFort Trumbull?
Examinetheprosandconsofcommercial transactionsinbloodfromtheegoistic,the utilitarian,andtheKantianperspectives.
WasGMresponsible forShannonMose ley’sdeath?Compare that casewith the caseofFordandthePinto.
The maximof Ford’s actionmight be statedthus:“Whenitwouldcostmoreto makeasafety improvement thannot, it’s all rightnot tomakeit.”Canthismaxim beuniversalized?Does it treathumansas endsinthemselves?Wouldmanufacturers bewilling toabideby it if thepositions werereversedandtheywereintheroleof
Utilitarianswould say that jeopardizing motoristsdoesnot by itselfmakeFord’s actionmorally objectionable. The only morally relevantmatter iswhether Ford gave equal consideration to the interests of each affected party. Do you think Forddidthis?
SupposeFordofficialswereaskedtojus tifytheirdecision.Whatmoralprinciples doyouthink theywould invoke?Assess Ford’shandlingofthePintofromtheper spectiveofeachof themoral theoriesdis cussedinthischapter.
Oneof theapplicantsadmitsthatheused poor judgmentbutbelievesthathisethics shouldnot bequestioned.What doyou thinkhemeans?Ifheexercisedpoorjudg ment onaquestionof right andwrong, isn’tthatamatterofhisethics?Stanford’s Derrick Bolton distinguishes between a lapseof judgmentandalackof
Assess the argument that the applicants who snoopedwere just engaging in the typeofboldandaggressivebehavior that makes forbusiness success. Inyourview, are these applicants likely tomake good businessleaders?Whatabouttheargument that it’s reallythe faultof theuniversities
DidHarvardandMIToverreact,orwasit necessaryforthemtorespondastheydid inorder tosendastrongmessageabout the importance of ethics? If youwere a business-school admissions official, how wouldyouhavehandledthissituation?
Inyourview,was itwrongfor theMBA applicantstotakeanunauthorizedpeekat their application files?Explainwhyyou considerwhat theydidmorallypermissi ble or impermissible.What obligations, ideals, and effects should the applicants haveconsidered?Doyouthink, as some havesuggested, that there isageneration
Assess themoralityofwhat the curious applicants did from the point of view of egoism, utilitarianism, Kant’s ethics, Ross’spluralism,andruleutilitarianism.
Suppose that you had been one of the MBAapplicantswhostumbledacrossan opportunity to learn your results early.Whatwould youhave done, andwhy?Wouldyouhaveconsidereditamoralde cision? If so, onwhat basiswould you havemadeit?
ShouldGoodrichbeheldmorallyrespon sibleasacompanyfortheA7Daffair,or should just the individuals involved be heldresponsible?
Do you thinkVandivier waswrong to workupthequalificationreport?Explain themoralprincipleorprinciples thatun derlieyour judgment.
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