Chapter 6 Business Ethics and Ethical Decision Making
1. Discuss the advantages and disadvantages of each decision that Elaine has made.
a. 1st decision Graphic, Inc. loan of $10 million. Graphco was a tobacco firm embroiled in litigation concerning the promotion of its products to children. Elaine based her decision by Moral Philosophies which refers to the specific principals or rules that people use to decide what is right or wrong (Ferrell, Fraedrich, Ferrell, Ninth Edition Business Ethics, p 153). The advantage to this decision is she did what she felt was morally acceptable, the disadvantage is she does not have their business and she has no reason to believe they would not pay the loan back and she would have made money for the bank if she accepted and approved the loan application. Although she was applauded for her moral stance from some there were some that were not very happy about the decision.
b. A Canadian company that was importing cigars from Cuba. Elaine based this decision on what is known as “Rule Deontologists” this is determined by the relationship between the basic rights of the individual and a set of rules governing conduct. Elaine based her decision of the Helms-Burton Act of 1996. (Helms-Burton Act) signed by United States President Bill Clinton on March 1996, while highlighting the US relationship with Cuba (Case Western Reserve Journal of International Law. Winter 98, Vol. 30 Issue 1, p251. 35p). Elaine’s advantage of this decision was she had clear guidance cited in the U.S. policy against Cuba by the Helms-Burton Act and dealings with Cuba. Disadvantage is she was dealing with a Canadian based company she could have done business with.
c. Electrode International which wanted a loan for $50 million. Elaine had issues with profits being unusually high for such marginal numbers. Electrode and others had allegedly fixed the prices on their products and were successful at this since their product was only being manufactured by a handful of companies. Elaine’s decision was
a. 1st decision Graphic, Inc. loan of $10 million. Graphco was a tobacco firm embroiled in litigation concerning the promotion of its products to children. Elaine based her decision by Moral Philosophies which refers to the specific principals or rules that people use to decide what is right or wrong (Ferrell, Fraedrich, Ferrell, Ninth Edition Business Ethics, p 153). The advantage to this decision is she did what she felt was morally acceptable, the disadvantage is she does not have their business and she has no reason to believe they would not pay the loan back and she would have made money for the bank if she accepted and approved the loan application. Although she was applauded for her moral stance from some there were some that were not very happy about the decision.
b. A Canadian company that was importing cigars from Cuba. Elaine based this decision on what is known as “Rule Deontologists” this is determined by the relationship between the basic rights of the individual and a set of rules governing conduct. Elaine based her decision of the Helms-Burton Act of 1996. (Helms-Burton Act) signed by United States President Bill Clinton on March 1996, while highlighting the US relationship with Cuba (Case Western Reserve Journal of International Law. Winter 98, Vol. 30 Issue 1, p251. 35p). Elaine’s advantage of this decision was she had clear guidance cited in the U.S. policy against Cuba by the Helms-Burton Act and dealings with Cuba. Disadvantage is she was dealing with a Canadian based company she could have done business with.
c. Electrode International which wanted a loan for $50 million. Elaine had issues with profits being unusually high for such marginal numbers. Electrode and others had allegedly fixed the prices on their products and were successful at this since their product was only being manufactured by a handful of companies. Elaine’s decision was
References: Farrell, Fraedrich, Farrell. Business Ethics: Ethical Decision Making and Cases (9th ed.) United States: 2011 South-Western, Cengage Learning. Arendt, Michelle. The Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996: Isolationists Obstacle to Policy of Engagement. Case Western Reserve Journal of International Law. Winter98, Vol. 30 Issue 1, p251. 35p, 0008-7254