Individual Business Ethics Case Analysi
Individual Business Ethics Case Analysis
[Women and Health Insurance]
[Casanav Simmons]
MBA 740: Legal & Ethical Issues in Business
Professor: Dr. Joseph A. Petrick
1. Who are the stakeholders involved and how severely are they impacted? Who is harmed and by how much?
a. Market Stakeholders: (1) Women: They are forced to pay higher premiums, then men (high impact); (2) Men: will be negatively affected by the rate because it would be subsidized if the women’s rates go down (high impact); (3) Insurance company: are participating in a discriminatory act by charging men less for insurance than they are charging women. (high impact); (4) Other Employers: are influenced because employee-subsidized insurance plans offer all employees same benefit plan (medium impact); (5) Owners/Investors: are making more revenue by charging the women more than they are charging the men so they are making more money than they should (medium impact); (6) Customer: treatment to women could cause a case and is likely to result in lost future business and bad word-of-mouth publicity (high impact);
b. Non-market Stakeholders: (1) Governments: possible fraud inviting local, state and/or federal government regulation (medium impact); (2) Communities: community members become victimized and/or vulnerable to dishonest sales tactics by a local business (medium impact); (4) Media: will likely not report a single episode unless there are a large amount of women that go to the press or complain about the unfair rates that they are getting from the company (low impact); (6) General Public: erodes trust in insurance companies to take care of them as far as their health in general (medium impact).
2. What are the central ethical issue(s) and the relevant facts in this case?
a. Central Ethical Issue(s): (1) charging women more for insurance is discriminatory; (2) Even if they decline maternity coverage they still get charged a high rate.; (3) risking loss
[Women and Health Insurance]
[Casanav Simmons]
MBA 740: Legal & Ethical Issues in Business
Professor: Dr. Joseph A. Petrick
1. Who are the stakeholders involved and how severely are they impacted? Who is harmed and by how much?
a. Market Stakeholders: (1) Women: They are forced to pay higher premiums, then men (high impact); (2) Men: will be negatively affected by the rate because it would be subsidized if the women’s rates go down (high impact); (3) Insurance company: are participating in a discriminatory act by charging men less for insurance than they are charging women. (high impact); (4) Other Employers: are influenced because employee-subsidized insurance plans offer all employees same benefit plan (medium impact); (5) Owners/Investors: are making more revenue by charging the women more than they are charging the men so they are making more money than they should (medium impact); (6) Customer: treatment to women could cause a case and is likely to result in lost future business and bad word-of-mouth publicity (high impact);
b. Non-market Stakeholders: (1) Governments: possible fraud inviting local, state and/or federal government regulation (medium impact); (2) Communities: community members become victimized and/or vulnerable to dishonest sales tactics by a local business (medium impact); (4) Media: will likely not report a single episode unless there are a large amount of women that go to the press or complain about the unfair rates that they are getting from the company (low impact); (6) General Public: erodes trust in insurance companies to take care of them as far as their health in general (medium impact).
2. What are the central ethical issue(s) and the relevant facts in this case?
a. Central Ethical Issue(s): (1) charging women more for insurance is discriminatory; (2) Even if they decline maternity coverage they still get charged a high rate.; (3) risking loss