Ethics – 2 Page Paper

2 Pages Addressing the Following

1. Summarize the article and align it with the author’s main point.

2. How does this article contribute to contemporary thinking about business ethics?

3. How can you apply information in this article to your field?

4. How did this article fit your ethical view?

our response should be a minimum of 2 double-spaced pages not including the title and reference pages.

Referenced sources must have accompanying citations complying with APA guidelines. References should include at minimum 1) one of the required reading articles and 2) an additional scholarly reviewed article.

Format the article review in accordance with APA style.

Find one example of something going wrong, something unethical or just bad happening

Find one example of something going wrong, something unethical or just bad happening. Examples should come from a major American newspaper or business magazine-The New York Times, The Seattle Times, The Washington Post, The Wall Street Journal; others might be acceptable, check with me. Examples from non-English-language sources are o.k. too. Examples must have been published within the last 12 months.
A. Briefly describe the example, and use the material from the Bazerman and Tenbrunsel paper, “Ethical breakdowns” to explain what happened.
B. Could the problem be addressed (prevented or fixed after-the-fact) using the material from Tyler, Dienhart, and Thomas’s account of procedural justice (in “The ethical commitment to compliance”)-how, or why not?
For example-and you can’t use this example-the bank Wells Fargo was found to have opened accounts that customers didn’t want, generating revenue from fees; this could be explained with reference to Bazerman and Tenbrunsel’s conception of ill-conceived goals. I don’t think the Tyler, Dienhart, and Thomas material could be used to prevent the problem, but once made public-the deception would destroy management legitimacy and have a number of consequences they note.

Find one example of something going wrong, something unethical or just bad happening. Examples should come from a major American newspaper or business magazine-The New York Times, The Seattle Times, The Washington Post, The Wall Street Journal; others might be acceptable, check with me. Examples from non-English-language sources are o.k. too. Examples must have been published within the last 12 months.
A. Briefly describe the example, and use the material from the Bazerman and Tenbrunsel paper, “Ethical breakdowns” to explain what happened.
B. Could the problem be addressed (prevented or fixed after-the-fact) using the material from Tyler, Dienhart, and Thomas’s account of procedural justice (in “The ethical commitment to compliance”)-how, or why not?
For example-and you can’t use this example-the bank Wells Fargo was found to have opened accounts that customers didn’t want, generating revenue from fees; this could be explained with reference to Bazerman and Tenbrunsel’s conception of ill-conceived goals. I don’t think the Tyler, Dienhart, and Thomas material could be used to prevent the problem, but once made public-the deception would destroy management legitimacy and have a number of consequences they note.

Find one example of something going wrong, something unethical or just bad happening. Examples should come from a major American newspaper or business magazine-The New York Times, The Seattle Times, The Washington Post, The Wall Street Journal; others might be acceptable, check with me. Examples from non-English-language sources are o.k. too. Examples must have been published within the last 12 months.
A. Briefly describe the example, and use the material from the Bazerman and Tenbrunsel paper, “Ethical breakdowns” to explain what happened.
B. Could the problem be addressed (prevented or fixed after-the-fact) using the material from Tyler, Dienhart, and Thomas’s account of procedural justice (in “The ethical commitment to compliance”)-how, or why not?
For example-and you can’t use this example-the bank Wells Fargo was found to have opened accounts that customers didn’t want, generating revenue from fees; this could be explained with reference to Bazerman and Tenbrunsel’s conception of ill-conceived goals. I don’t think the Tyler, Dienhart, and Thomas material could be used to prevent the problem, but once made public-the deception would destroy management legitimacy and have a number of consequences they note.

Ethics

Find one example of something going wrong, something unethical or just bad happening. Examples should come from a major American newspaper or business magazine-The New York Times, The Seattle Times, The Washington Post, The Wall Street Journal; others might be acceptable, check with me. Examples from non-English-language sources are o.k. too. Examples must have been published within the last 12 months.
A. Briefly describe the example, and use the material from the Bazerman and Tenbrunsel paper, “Ethical breakdowns” to explain what happened.
B. Could the problem be addressed (prevented or fixed after-the-fact) using the material from Tyler, Dienhart, and Thomas’s account of procedural justice (in “The ethical commitment to compliance”)-how, or why not?
For example-and you can’t use this example-the bank Wells Fargo was found to have opened accounts that customers didn’t want, generating revenue from fees; this could be explained with reference to Bazerman and Tenbrunsel’s conception of ill-conceived goals. I don’t think the Tyler, Dienhart, and Thomas material could be used to prevent the problem, but once made public-the deception would destroy management legitimacy and have a number of consequences they note.

ETHICS CASE

As its year-end approaches, it appears that Mendez Corporation’s net income will increase 10% this year. The president of Mendez Corporation, nervous that the stockholders might expect the company to sustain this 10% growth rate in net income in future years, suggests that the controller increase the allowance for doubtful accounts to 4% of receivables in order to lower this year’s net income, which reflects a 6% growth rate, will be a more sustainable rate of growth for Mendez Corporation in future years. The controller of Mendez Corporation believes that the company’s yearly allowance for doubtful accounts should be 2% of receivables.

QUESTIONS:

  • Who are the stakeholders in this case?
  • Does the president’s request pose an ethical dilemma for the controller?

 

  • Should the controller be concerned with Mendez Corporation’s growth rate in estimating the allowance? Explain your answer in full detail.

Ethical decision making and social responsibility

What Would You Do? Case Assignment

American Express

New York, NY

 

Headquarters, New York. With medical costs rising 10 to 15 percent per year, one of the members of your Board of Directors mentioned that some companies are now refusing to hire smokers and that the board should discuss this option at the next month’s meeting. Nationwide, about 6,000 companies refuse to hire smokers. Weyco, an employee benefits company in Okemos, Michigan, requires all applicants to take a nicotine test. Weyco’s CFO says, “We’re not saying people can’t smoke. We’re just saying they can’t smoke and work here. As an employee-benefits company, we need to take a leadership role in helping people understand the cost impact of smoking.” The Cleveland Clinic, one of the top hospitals in the United States, doesn’t hire smokers. Paul Terpeluk, the director of corporate and employee health, says that all applicants are tested for nicotine and that 250 people have lost job opportunities because they smoke. The Massachusetts Hospital Association also refuses to hire smokers. The company’s CEO says, “Smoking is a personal choice, and as an employer I have a personal choice within the law about who we hire and who we don’t.”

 

As indicated by your board member, costs are driving the trend not to hire smokers. According to the U.S. Centers for Disease Control, a smoker costs about $4,000 more a year to employ because of increased health-care costs and lost productivity. Breaking that down, a smoker will have 50 percent higher absenteeism, and, when present, will work 39 fewer minutes per day because of smoke breaks, which leads to 1,817 lost hours of annual productivity. A smoker will have higher accident rates, cause $1,000 a year in property damage (from cigarette burns and smoke damage), and will cost up to $5,000 more a year for annual insurance premiums. John Banzhaf, executive director of an antismoking group in Washington, and a law professor at George Washington University, says, “Smoking is the biggest factor in controllable health-care costs.”

 

Although few would disagree about the costs, others argue it is wrong not to hire smokers. Jay Whitehead, publisher of a magazine for human resources managers, says, “There is discrimination at many companies—and maybe even most companies—against people who smoke.” Even if applicants aren’t asked whether they smoke, it “doesn’t mean that hiring managers turn off their sense of smell.” Paul Sherer, a smoker who was fired less than a week after taking a new job, says, “Not hiring smokers affects millions of people and puts them in the same category as women able to bear children, that is, people who contribute to higher health-care costs. It’s unfair.” Law professor Don Garner believes that not hiring smokers is “an overreaction on the part of employers whose interest is cutting costs. If someone has the ability to do the job, he should get it. What you do in your home is your own business. … Not hiring smokers is ‘respiratory apartheid.’”

 

Well, with the meeting just a month away, you’ve got to prepare for the Board of Directors’ questions. For example, on what basis should the company decide whether to hire smokers? Should the decision be based on what’s in the best interest of the firm, what the law allows, or what affirms and respects individual rights? The Board is interested in making good decisions for the company, but “doing the right thing” is also one of its core values. Next, is this an issue of ethics or social responsibility? Ethical decision making is concerned with doing right and avoiding wrong, whereas social responsibility is a business’s obligation to pursue policies, make decisions, and take actions that benefit society. Finally, given that it’s so much cheaper not to hire smokers, the board will want to know whether refusing to hire smokers is a form of discrimination.

 

If you were in charge at American Express, what would you do?

Sources:

  1. Azfzal, “Smokers Need Not Apply: Is Hiring Ban Trend of the Future?” The Christian Science Monitor, 17 November 2010, http://www.csmonitor.com/Business/2010/1117/Smokers-need-not-apply-Is-hiring-ban-trend-of-the-future [accessed 20 January 2015]; M. Hennessy, “Right to Smoke?” CFO, February 2006, 54; M. Janofsky, “Ban on Employees Who Smoke Faces Challenges of Bias,” The New York Times, 28 April 1994, A1; M. Lecker, “The Smoking Penalty: Distributive Justice or Smokism?” Journal of Business Ethics (2009) 84: 47-64; K. Maher, “Companies Are Closing Doors On Job Applicants Who Smoke,” Wall Street Journal, 21 December 2004, B6; A. Sulzberger, “Hospitals Shift Smoking Bans to Smoker Ban,” The New York Times, 10 February 2011, http://www.nytimes.com/2011/02/11/us/11smoking.html?_r=1&hp [accessed 20 January 2015].