(TIỂU LUẬN) BUSINESS ETHICS CHAPTER 2 THEORIES OF ETHICS CASE 2 1 OPENING CASE

BUSINESS ETHICS CHAPTER 2: THEORIES OF ETHICS CASE 2.1: OPENING CASE Scenario 1: The moral side of murder Suppose you are driver of trolley car, your trolley car is hurtling down the track at 60 m At the end of the track, you notice workers are working on the track You try to stop but you can’t Your brake doesn’t work, you feel desperate because you know If you crash into these workers, they will all die, but to soon you know that’s for sure, so you feel helpless Until you notice there is off to the right, a side track, at the end of that track, there is a worker working on the track Your steering wheel works, so you can turn trolley car left If you want to, onto the side track, killing the one, be sparing the five Questions: How many students would turn the trolley car onto the side track? How many students would go straight ahead? Why? What’s the right thing to do? Scenario 2: The moral side of murder This time you are not the driver of trolley car, you are onlooker You’re standing on a bridge, overlooking a trolley car track, down the track come the trolley car At the end of the track are five workers, the brake doesn’t work The trolley car is about careen into the five and kill them, and now you aren’t driver, you really feel helpless Until you notice standing next to you, leaning over the bridge is a very fat man, and you could give him a shove, he would fall over the bridge onto the track, right into the way of trolley car, he would die but he would spare the five Questions: How many students would push the fat man over the bridge? How many students wouldn’t? Why? @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS What’s the right thing to do? CHAPTER 2: THEORIES OF ETHICS PART 2- THEORY OF MORALITY CASE 2.2: MOTHERHOOD FOR SALE  This is a case involving market and in fact a contract in a human reproductive capacity and this is a case of commercial surrogate motherhood, it is a case that wound up in court some years ago It began with William and Elizabeth Stern, a professional couple wanting a baby, but they could not have one in their own, at least without medical risks to Mrs Stern  They went to an infertility clinic where they met Whitehead, a 29 year-old mother of kids, the wife of a sanitation worker She had replied an advertisement that the Stern had placed seeking the service of a surrogate mother  They made a deal, they signed a contract in which William Stern agreed to pay Whitehead a $10,000 fee plus all expenses in exchange for which for Whitehead agreed to be artificially inseminated with William Stern’s sperm to bear the child and then to give the baby to the Sterns  Whitehead gave birth and changed her mind; she decided she wanted to keep the baby The case wound up in court in New Jersey  So let’s take put aside any legal questions and focus on this issue as moral questions Questions: How many people believe that the right thing to in the baby M case would have been to uphold the contract, to enforce the contract? Why? How many people think the right thing to would have been not to enforce that contract? Why? @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS CHAPTER 2: THEORIES OF ETHICS PART 2- THEORY OF MORALITY CASE 2.3: ACTION OF SHOPKEEPER Kant starts with example of a shopkeeper He wants to bring out the intuition and make plausible the idea that what confer moral worth on an action is that it be done because it’s right He supposes there is a shopkeeper and an inexperienced customer comes in The shopkeeper knows that she could give the customer the wrong change, could shortchange the customer and get away with it; at east that customer wouldn’t know But the shopkeeper nonetheless says “Well, If I shortchange this customer, word may get out, my reputation would be damaged, and I would lose business So I will not shortchange this customer.” The shopkeeper dose nothing wrong, she gives correct change Questions: Could the action of shopkeeper be considered as an ethical action based on Kant’s view? Why? @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS CHAPTER 2: THEORIES OF ETHICS P1+2: UTILITARIANISM AND THEORY OF MORALITY CASE 2.4: CONFIDENTIALITY You are employed as a technical communicator by Caduceus Company, a major provider of software systems for the health care industry Currently, you are working on help-desk instructions for a new software system that operates from a database accumulated from all the records of all the hospitals, clinics, HMOs, laboratories, and physicians in your state These records carry a good deal of highly personal information on patients and are, of course, private and confidential The revelation of some of this information to the wrong people could be seriously damaging for those patients Improper release of this information could, for example, limit their employability, damage their reputations, or restrict their access to health insurance at affordable rates Part of your job, in fact is to ensure that confidentiality is maintained by all who use the system while preventing access to those who might misuse it Just yesterday, you learned of some shocking information While observing the typical daily operation of the help-desk staff in resolving users' questions, you recognized the name of one of the clients called up on a screen It is the name of your cousin's fiancé, and the entry indicates that he has tested positive for HIV and has received counseling about HIV and AIDS from a local clinic You and your cousin are very close, and you are certain that she is unaware that her intended spouse has tested positive for HIV The marriage is only a few weeks away She would be highly endangered after marriage but also in their current relations without this knowledge Questions: @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS Do you reveal this information to your cousin but violate the privacy and confidentiality that you have sworn yourself to and are legally obliged to maintain? Or you keep the information to yourself but jeopardize the health and life of your cousin by preserving the deception by her fiancé • Identifying how many choices to deal with situation you consider? • Justifying each your choice based on theory of Utilitarianism and Kant’s ethics CHAPTER 3: ETHICS AND STAKEHOLDERS CASE 3.1: MILK PRODUCT CONTAMINATION INVOLVING THE SANLU GROUP In 2008, a great number of babies in China, having consumed the milk powder produced by Sanlu Group, were discovered to have suffered from kidney stones Later, its milk was found to contain melamine, an industrial chemical, which can result in a heightened protein content value in tests and yield greater profit for milk farmers Adding melamine to the milk may boost its market value, yet long-term ingestion of melamine would create problems for the urinary system, resulting in kidney stones and even cancer According to statistics, up until 21 January 2009 nearly 50,000 infants sought medical consultation and was treated and recovered as a result of having ingested the problematic milk powder; died as a result There were also confirmed cases in Hong Kong and Macau After the General Administration of Quality Supervision announced the examination report regarding the presence of melamine in the baby powder produced by numerous major manufacturers, the scope of incident was revealed – the presence of melamine was discovered in the milk powder of many major manufacturers in China The event also had a disastrous impact on the reputation of China-made goods, with many countries banning the import of China-made milk products Later, it was revealed that in as early as 2007 there have been customer complaints about the quality of Sanlu’s milk powder The company only covered up the incidents and it was not until August 2008 when cases began to mushroom all over @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS the country that Sanlu reported to the Shijiazhuang Municipal Government and the Xinhua District Government and announced the public about the presence of melamine in the milk powder A recall was subsequently conducted but there was already a surge in occurrence of kidney-stones in infants Many infants suffered kidney problems and some did not survive; later the government announced that they would treat infants freely The Shijizhuang Municipal Government later arrested near 20 individuals working separately at the ranches, milk cows rearing communities, operators of milk halls, and illegal sellers of the chemical The Provincial Government ordered Sanlu to cease production The company was declared bankrupt and the persons responsible were punished Questions Who are stakeholders of the Sanlu Group? How did the stakeholders impact on the Sanlu Group? What lessons you learn from the case? @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS CHAPTER 4: MARKETING ETHICS PRACTICE 4.1: ETHICS IN MARKETING AND ADVERTISING PRACTICES (CONSUMER-RELATED ISSUES) What is ethical issue in the following cases? Cases Ethical issues 1.The Society of Hospital Pharmacists of Hong Kong conducted a study of the safety and effectiveness of 10 major injection and external use medical beauty treatments They discovered that of these treatments were not supported by sufficient clinical evidence and poses possible safety hazards There is a chance that the consumer may suffer possible bacterial infection and even die A bank sold complex financial products to poorly-educated elderly citizens, attempting to convince them to make high risk investments A certain advertisement was promoting a “fitness shoe” that claimed reduction of weight upon wearing but did not provide any evidence @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS A supplier sold goods to large corporations at very low or sub-product cost prices; meanwhile it sold the goods to small merchants at prices that exceed the production cost The aim was to help large corporations expand their market share A certain mobile phone manufacturer launched a new phone At sales launch a great number of grey goods traders queued outside the store making it impossible for real consumers to buy the phone CHAPTER 4: MARKETING ETHICS CASE 4.2: ETHICAL DILEMMAS IN FASHION ADVERTISING Sarah has recently been hired as a creative director at one of the hottest agencies in the country It is her dream job She is leading an award winning team that is working on the agency’s largest and most lucrative account—a world renowned women’s fashion brand Her team is currently under a great deal of pressure to prepare a dynamite campaign for a new product introduction—a new line of fashions for teenage girls Since sales of its flagship women’s fashion brand have been stagnant, the client believes that this campaign is crucial to the continued viability of its business Furthermore, the client has hinted that if the campaign is not an unqualified success (that is, truly sensational), then the entire account will go out for competitive bidding, and a new agency will likely be selected Sarah is eager for the team to continue its winning record under her leadership, and she knows that losing this account would be devastating to the agency However, an issue related to the campaign has begun to concern her The issue is this: the models selected for the campaign are young and exceedingly thin—heroin chic thin (they look almost anorexic) Sarah recently has read some research regarding the negative effects that ultra thin female images in the media can have on teenage girls and their conceptions of beauty, and she feels uncomfortable about the images of beauty portrayed in the campaign @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS When she questioned one of her staff about this, he told her that the client liked this type of model, which had been used in its previous campaigns, and that it was the client’s prerogative to use any type of model he wanted Sarah knows that any questions that she raises could have negative effects on her staff Since she is new, Sarah very much wants to win the respect and confidence of her team She does not want to tinker with the team’s winning formula, and she does not want to anything to constrain their creativity Questions to discuss: What does ethical issue raise? What should Sarah and what should her advertising firm do? (Don’t discuss what the client should (I don’t want you to be overwhelmed with issues to discuss) CHAPTER 5: HRM AND ETHICS PRACTICE 5.1: WHAT IS ETHICAL ISSUE IN THE BELOW CASES? Cases Ethical issues in HRM a A certain music school asks its new employees to sign a 3-year contract, which stated that if the employee resigns before the contract ended, he or she must pay the company 3-years’ worth of salaries There are also unreasonable clauses including the deduction of one dollar from the salary upon every minute of being late, and $300 from the salary for every day’s absence from work – every if one takes a sick leave b.A certain book store asks its staff to clock in hours of overtime per day during the book fair – making a total of 15 hours of work per day They were also only allowed 30 minutes of meal time c A company’s employee becomes pregnant, she would @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS be given a difficult time by the company under various pretences, until she resigns voluntarily d A certain restaurant in Hong Kong is used to paying its staff later than usual –salary is paid usually10 days after the month end e The staff at a famous Japanese home electronics brand complains about the company violating their personal privacy The company would closely monitor their activities in the office f A certain Korean enterprise has established a factory in Shenzhen During a theft incident, its management forcibly searched the bodies of 56 female workers making them feel humiliated Also there was once when a production line failed to meet its production quota, the staff of the entire production line was punished by having to kneel at the entrance of the company The incident has drawn media’s attention @Ms Duong Thi Hoai Nhung (FTU) Page 10 BUSINESS ETHICS CHAPTER 6: BUSINESS, THE ENVIRONMENT AND SUSTAINABILITY CASE 6.1: SHOULD TOXIC WASTE BE EXPORTED? Tons of toxic wastes are created every day in the production and disposal of countless goods and services Business and government must decide what to with such leftovers as the radioactive wastes created in nuclear power plants, the fly ash from industrial and municipal incinerators, chemical residues from industrial processes and consumer goods, and heavy metals in computers and other consumer electronics Consumers are challenged to find ways to dispose of toxic chemicals in household cleaners, lawn and garden pesticides, home appliances, and consumer electronics Ordinary waste disposal is a serious enough public policy challenge for every level of government Newer landfills soon reach their capacity; many older and closed landfills contaminate groundwater; and incinerators spew noxious pollutants But the challenge is compounded when the wastes entering into the disposal system are themselves highly toxic and dangerous Historically, industry has disposed of wastes into the easiest and least desirable sites For decades, industry simply dumped waste into the air and water or buried it underground Landfills, trash dumps, incinerators, and other socially undesirable activities were located either in out-of-the-way and unattractive locations, or in the most convenient location to ease disposal Such decisions seemed to make economic sense; if land values would be degraded because of proximity to a toxic waste dump, @Ms Duong Thi Hoai Nhung (FTU) Page 11 BUSINESS ETHICS it makes most sense to choose a location that already has the lowest valued property One result of this dumping is that domestic waste disposal often creates a cycle of decreasing land values that seem clearly to harm the poorest and most disenfranchised citizens Areas with the lowest land values, and therefore areas targeted as the location for socially undesirable activities, tend to be the areas in which a society’s poorest citizens live As those areas accept more of the undesirable wastes and industries, they became even less attractive locations in which to live, thereby making them poorer and poorer, as those who are able to move away leave behind those who are less able to so This practice raises fundamental questions of social justice when society’s least advantaged citizens pay the highest costs for the social benefits of industrial society In recent decades, this same economic logic has created a market for toxic wastes among the world’s poorest countries The incentive to send toxic wastes offshore increases as waste disposal has become more expensive domestically The world’s less developed countries need the income and, because they are less developed, often not have the industrial pollution problems that plague developed countries Questions: Should waste disposal be treated simply as an economic issue, to be resolved through private market exchanges, or should government regulations place greater responsibility on producers for the entire life cycle of products? CHAPTER 6: BUSINESS, THE ENVIRONMENT AND SUSTAINABILITY @Ms Duong Thi Hoai Nhung (FTU) Page 12 BUSINESS ETHICS CASE 6.2: ETHICAL ISSUES IN PROTECTING ENVIRONMENT IN X CHEMICAL CORP Bryan Montoya is a production supervisor He was recently hired by X Chemical Corp to oversee production of a new industrial lubricant The factory that produces the lubricant was built on land next to a river X Chemical has a permit from the government to dump factory waste into the river X Chemical has always said publicly that it would all that it could to protect the environment When the factory was first proposed, there was a lot of opposition from various citizen’s groups, who feared it would pollute the river X Chemical persuaded them to support construction of the factory by promising to make the production process as clean as possible Their support made the permit easier to get The factory was originally meant to include a final stage in the production process that would minimize the amount of waste produced However, after X Chemical had made promises to the citizen’s group, it received the government permit, and to its surprise, learned that the permit allows X Chemical to release more waste in the river than they planned to release Evidently the river can tolerate that level of pollution without any noticeable effects, so the public will not be bothered by the @Ms Duong Thi Hoai Nhung (FTU) Page 13 BUSINESS ETHICS relatively small amounts of pollution emitted Because the government will let them pollute more than they intended to, the final stage in the production process became unnecessary X Chemical took advantage of this by not building the final stage in the production process, thereby saving capital and production costs The company has had mediocre performance for several quarters However, this is now changing, thanks to the new lubricant The lubricant is top-quality, and it is produced at a cost significantly below those of their competitors Orders have been flowing in, and the plant is selling everything it can produce Because the new product is so successful, all employees are looking forward to sizable bonuses Bryan is upset that the company failed to build the final stage, and fears that the excess waste released today will cause problems for the company tomorrow Bryan approaches Bill Garrison, the Plant Supervisor, with his concerns Bill replies, "It's up to the government agency to protect the river from excess waste, and the company only had to meet the agency's standards The amount of waste being released poses no threat to the environment, according to the agency Besides, the final stage waste reduction equipment can be added later when it becomes necessary At this point, building the final stage would cost even more money and interrupt production, and interrupting production would hurt sales Don't go trying to cause trouble without any proof You're new here, and you wouldn't want to have to find a new job." Bryan is frustrated and upset He can see all the benefits of the new product, but inside he is sure the company is making a short-sighted decision which will hurt them in the long run He considers whether to report this situation to the news media Questions to discuss: Whether X Chemical should go ahead and install the final stage equipment? Whether Bryan should blow the whistle if they not? @Ms Duong Thi Hoai Nhung (FTU) Page 14 BUSINESS ETHICS CHAPTER 7: ETHICS, ACCOUNTING AND AUDITING CASE 7.1: IGNORE THE ERROR? Kelsey, a senior accountant at a multi-office CPA firm, is assigned to the audit of Compo Corporation Compo is a closely held corporation and a major client of the firm During the audit, Kelsey finds a material cutoff error which causes Compo’s income to be significantly misstated Kelsey is aware that the CPA firm’s policy clearly states the audit senior must document any potential material adjustment in the work papers The final determination of materiality is then made by the partner in charge of the audit Kelsey also knows Compo does not want to make the adjustment Before wrapping up the field work, the audit manager, Bruce, tells Kelsey, :Let’s not mention this adjustment in the work papers Since Compo is closely held and there are not tax implications, the partner has decided not to force an adjustment Compo @Ms Duong Thi Hoai Nhung (FTU) Page 15 BUSINESS ETHICS is our largest client We need to get the Compo work up to the partner as soon as possible.” Kelsey is concerned and upset after the conversation with Bruce Failure to document such a material amount just does not seem right (Author: Sandra K Fleak, Associate Professor of Accounting, Northeast Missouri State University) Questions: What Are the Ethical Issues? What action would you take if you were Kelsey? Why? @Ms Duong Thi Hoai Nhung (FTU) Page 16 .. .BUSINESS ETHICS What’s the right thing to do? CHAPTER 2: THEORIES OF ETHICS PART 2- THEORY OF MORALITY CASE 2. 2: MOTHERHOOD FOR SALE  This is a case involving market and... Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS CHAPTER 2: THEORIES OF ETHICS PART 2- THEORY OF MORALITY CASE 2. 3: ACTION OF SHOPKEEPER Kant starts with example of a shopkeeper He wants to bring... Kant’s view? Why? @Ms Duong Thi Hoai Nhung (FTU) Page BUSINESS ETHICS CHAPTER 2: THEORIES OF ETHICS P1 +2: UTILITARIANISM AND THEORY OF MORALITY CASE 2. 4: CONFIDENTIALITY You are employed as a technical