INSTRUCTOR SOLUTIONS MANUAL
BUSINESS ETHICS IN CANADA, RESPONSIBILITY, EQUITY,
AND SUSTAINABILITY
6TH CANADIAN EDITION
CHAPTER NO. 01: THE RELATIONSHIP BETWEEN BUSINESS AND
SOCIETY
RESPONSES TO “CRITICAL THINKING AND DISCUSSION QUESTIONS”
1. Can most Canadians describe the working of the Canadian business system or
capitalism? Can you? Give reasons to support your answer.
This question cannot be answered definitively. One can speculate that despite
interacting with business everyday, many Canadians do not fully understand how
it works and are not familiar with the fundamentals upon which it is based. In
media coverage of business, there are many misconceptions of business; for
example, few understand upon what basis profits are measured or mark-up.
Ask students for a definition or description. The responses may be surprising. Just
because they are studying business does not mean they can explain it!
2. Which factors influence the integrity of Canadian business the most?
“Government presence” would definitely be included. A second choice would the
resource-based nature of the economy. The influence of social media should not
be underestimated. Other possible answers might include, at a micro level, the
challenges of making a living in some of Canada’s more expensive cities or the
challenges of the gig economy.
3. Should corporations be formed only with the permission of society as represented
by government, or should they be allowed to form freely without much
government oversight? Give reasons to support your answer.
This question is key to society’s view of the corporation. If the “permission” (or
concession) approach is believed, society, through government, has control over
the corporation. Social responsibility could be imposed on the corporation. The
demands on the corporation change as society’s expectations change. If the “form
freely” (freedom of association) approach is believed, society would rely on
corporations to behave in a matter appropriate and as expected by society. In
, effect, this approach would be a type of “self-regulation” as opposed to
government regulation.
4. What most influences your attitude toward business? Give reasons to support your
answer.
A poll of student responses would be interesting. The occurrence of corporate
wrongdoing most likely would be prominent in the responses. Some students may
identify bankruptcies and closures (e.g., Nordstrom, Lowe’s). Others might
identify prominent US examples (e.g., Donald Trump’s financial challenges).
Others might identify their work in the gig economy, difficulty securing affordable
and safe housing, etc.
5. Should business persons be concerned about how they and their businesses are
portrayed in the popular media? Give reasons to support your answer.
Definitely. The numerous forms of media constantly present information on
business, some of it not favourable. If the images of business portrayed in the
media are negative, society may question the legitimacy of business.
6. Explain why, or why not, ethics and business are interconnected.
Everyone has ethics—even if we don’t always agree with others’ ethics. Similarly,
we rely upon businesses to provide the goods and services we use and consume
daily. Since both involve, quite literally, everyone, that’s the most basic point of
connection.
Increasingly, mere compliance with laws and regulations is not seen as “enough”
to be ethical. This reflects a shift in the understanding of business’ obligations to
society. Thus, an understanding of ethics is needed to enhance business’ abilities
to meet societal expectations.
7. Is human behaviour adequately described by the homo economicus (REMM)
model? Give reasons to support your answer.
The REMM model extends homo economicus by considering non-material sources
of value in both self and others (implying that it also considers material sources
of value in others). To the extent that values such as respect, honour, power, love,
and others’ welfare are considered by the actor, these can at least somewhat
adequately explain human behaviour. There are also significant difficulties in
, evaluation and maximization when considering non-material sources of value, so
that it can be challenging for people to behave wholly in accordance with REMM,
let alone homo economicus.
8. How does business maintain legitimacy before society?
Businesses must walk a fine line in ensuring they maintain legitimacy. At
minimum, they must be aware of their legal obligations and the shifting
requirements imposed by governments and the court system (e.g., new consumer
protection regulations for airline passengers). There is definitely backlash to be
considered if businesses get too far “out in front” (e.g., with Black Lives Matter,
2SLGBTQIAPP+ rights), and these can be seen as empty gestures. So, in
summary, they must “walk the walk,” and be wary of just “talking the talk.”
ANSWERS TO END OF CHAPTER CASES
1.1: Fast Fashion
Fast fashion is the term given to inexpensive clothing produced rapidly by mass-market
retailers in response to the latest trends. This topic should result in a lively class
discussion.
1. Should you care about the fast fashion business model? Why or why not?
As a consumer, the fast fashion model benefits you, most likely, because you can
keep up with the latest trends in a relatively affordable manner. However, the
environmental implications are significant (a pile of discarded clothing was
recently spotted in the Chilean desert: https://www.space.com/mountain-
discarded-clothes-chile-satellite-photo). Additionally, there are significant
concerns about the exploitation of women for forced labour in many countries
(e.g., Bangladesh, India, and other places).
While it may seem easy to say “purchase better-quality clothing, and less of it,”
this is unrealistic advice for many students, especially if they’re seeking the latest
trends. Even thrift stores and off-price retailers might be unrealistic, given the
need for hunting the racks and tailoring.
2. Who are the main societal actors involved in fast fashion, and how are they
affected?
, Key actors include clothing designers, manufacturers, and the retailers
themselves. Clothing designers are able to try out new designs and ideas quickly,
and make more of designs that sell well, but there are significant intellectual
property concerns. Manufacturers use digital tools and patterns to reduce the cost
of producing these cheap clothes, as well as employing a largely exploited
workforce. The retailers are often vertically integrated with the designers and
manufacturers, and provide employment opportunities for many young persons.
Fast fashion is a multi-billion dollar industry, and unraveling it would have
significant effects.
3. Should you change where you buy your clothes? Why or why not?
In part, the answer to this question depends on whether or not you continue to
work at H&M. Many fast fashion chains have a dress code requiring staff to wear
the latest season’s clothing (often at a significant discount, but not always). It
may be worthwhile to consider how you could implement the principle of
“purchase better-quality clothing, and less of it.” In part, this may mean being
someone countercultural in your style choices, but this is also somewhat
unrealistic advice for many students, especially if they’re seeking the latest
trends. Even thrift stores and off-price retailers might be unrealistic, given the
need for hunting the racks and tailoring.
4. Should you quit your part-time job? Why or why not?
Being able to put a roof over your head and food on the table are important. As a
student, you’re already likely struggling enough to do those things, in addition to
paying for tuition, books, and other education expenses. It’s OK to act in your
own self-interest, even if it may conflict with some of your own deeply held values
and beliefs. You can always try to look for another job, but finding employers
willing to flex around school schedules can be challenging at the best of times.
5. Should you become a consumer activist? Why or why not?
In part, the answer to this question depends on whether or not you’re continuing
to work at H&M. Many workplaces have clauses in their employee handbooks
that require their employees not to say negative or bad things about their
employer (i.e., a non-disparagement clause). Usually, this would prohibit actions
that could hurt your employer’s reputation. It may be wiser to support these
causes financially or less publicly. Again, the principle of self-interest comes into
play here.
BUSINESS ETHICS IN CANADA, RESPONSIBILITY, EQUITY,
AND SUSTAINABILITY
6TH CANADIAN EDITION
CHAPTER NO. 01: THE RELATIONSHIP BETWEEN BUSINESS AND
SOCIETY
RESPONSES TO “CRITICAL THINKING AND DISCUSSION QUESTIONS”
1. Can most Canadians describe the working of the Canadian business system or
capitalism? Can you? Give reasons to support your answer.
This question cannot be answered definitively. One can speculate that despite
interacting with business everyday, many Canadians do not fully understand how
it works and are not familiar with the fundamentals upon which it is based. In
media coverage of business, there are many misconceptions of business; for
example, few understand upon what basis profits are measured or mark-up.
Ask students for a definition or description. The responses may be surprising. Just
because they are studying business does not mean they can explain it!
2. Which factors influence the integrity of Canadian business the most?
“Government presence” would definitely be included. A second choice would the
resource-based nature of the economy. The influence of social media should not
be underestimated. Other possible answers might include, at a micro level, the
challenges of making a living in some of Canada’s more expensive cities or the
challenges of the gig economy.
3. Should corporations be formed only with the permission of society as represented
by government, or should they be allowed to form freely without much
government oversight? Give reasons to support your answer.
This question is key to society’s view of the corporation. If the “permission” (or
concession) approach is believed, society, through government, has control over
the corporation. Social responsibility could be imposed on the corporation. The
demands on the corporation change as society’s expectations change. If the “form
freely” (freedom of association) approach is believed, society would rely on
corporations to behave in a matter appropriate and as expected by society. In
, effect, this approach would be a type of “self-regulation” as opposed to
government regulation.
4. What most influences your attitude toward business? Give reasons to support your
answer.
A poll of student responses would be interesting. The occurrence of corporate
wrongdoing most likely would be prominent in the responses. Some students may
identify bankruptcies and closures (e.g., Nordstrom, Lowe’s). Others might
identify prominent US examples (e.g., Donald Trump’s financial challenges).
Others might identify their work in the gig economy, difficulty securing affordable
and safe housing, etc.
5. Should business persons be concerned about how they and their businesses are
portrayed in the popular media? Give reasons to support your answer.
Definitely. The numerous forms of media constantly present information on
business, some of it not favourable. If the images of business portrayed in the
media are negative, society may question the legitimacy of business.
6. Explain why, or why not, ethics and business are interconnected.
Everyone has ethics—even if we don’t always agree with others’ ethics. Similarly,
we rely upon businesses to provide the goods and services we use and consume
daily. Since both involve, quite literally, everyone, that’s the most basic point of
connection.
Increasingly, mere compliance with laws and regulations is not seen as “enough”
to be ethical. This reflects a shift in the understanding of business’ obligations to
society. Thus, an understanding of ethics is needed to enhance business’ abilities
to meet societal expectations.
7. Is human behaviour adequately described by the homo economicus (REMM)
model? Give reasons to support your answer.
The REMM model extends homo economicus by considering non-material sources
of value in both self and others (implying that it also considers material sources
of value in others). To the extent that values such as respect, honour, power, love,
and others’ welfare are considered by the actor, these can at least somewhat
adequately explain human behaviour. There are also significant difficulties in
, evaluation and maximization when considering non-material sources of value, so
that it can be challenging for people to behave wholly in accordance with REMM,
let alone homo economicus.
8. How does business maintain legitimacy before society?
Businesses must walk a fine line in ensuring they maintain legitimacy. At
minimum, they must be aware of their legal obligations and the shifting
requirements imposed by governments and the court system (e.g., new consumer
protection regulations for airline passengers). There is definitely backlash to be
considered if businesses get too far “out in front” (e.g., with Black Lives Matter,
2SLGBTQIAPP+ rights), and these can be seen as empty gestures. So, in
summary, they must “walk the walk,” and be wary of just “talking the talk.”
ANSWERS TO END OF CHAPTER CASES
1.1: Fast Fashion
Fast fashion is the term given to inexpensive clothing produced rapidly by mass-market
retailers in response to the latest trends. This topic should result in a lively class
discussion.
1. Should you care about the fast fashion business model? Why or why not?
As a consumer, the fast fashion model benefits you, most likely, because you can
keep up with the latest trends in a relatively affordable manner. However, the
environmental implications are significant (a pile of discarded clothing was
recently spotted in the Chilean desert: https://www.space.com/mountain-
discarded-clothes-chile-satellite-photo). Additionally, there are significant
concerns about the exploitation of women for forced labour in many countries
(e.g., Bangladesh, India, and other places).
While it may seem easy to say “purchase better-quality clothing, and less of it,”
this is unrealistic advice for many students, especially if they’re seeking the latest
trends. Even thrift stores and off-price retailers might be unrealistic, given the
need for hunting the racks and tailoring.
2. Who are the main societal actors involved in fast fashion, and how are they
affected?
, Key actors include clothing designers, manufacturers, and the retailers
themselves. Clothing designers are able to try out new designs and ideas quickly,
and make more of designs that sell well, but there are significant intellectual
property concerns. Manufacturers use digital tools and patterns to reduce the cost
of producing these cheap clothes, as well as employing a largely exploited
workforce. The retailers are often vertically integrated with the designers and
manufacturers, and provide employment opportunities for many young persons.
Fast fashion is a multi-billion dollar industry, and unraveling it would have
significant effects.
3. Should you change where you buy your clothes? Why or why not?
In part, the answer to this question depends on whether or not you continue to
work at H&M. Many fast fashion chains have a dress code requiring staff to wear
the latest season’s clothing (often at a significant discount, but not always). It
may be worthwhile to consider how you could implement the principle of
“purchase better-quality clothing, and less of it.” In part, this may mean being
someone countercultural in your style choices, but this is also somewhat
unrealistic advice for many students, especially if they’re seeking the latest
trends. Even thrift stores and off-price retailers might be unrealistic, given the
need for hunting the racks and tailoring.
4. Should you quit your part-time job? Why or why not?
Being able to put a roof over your head and food on the table are important. As a
student, you’re already likely struggling enough to do those things, in addition to
paying for tuition, books, and other education expenses. It’s OK to act in your
own self-interest, even if it may conflict with some of your own deeply held values
and beliefs. You can always try to look for another job, but finding employers
willing to flex around school schedules can be challenging at the best of times.
5. Should you become a consumer activist? Why or why not?
In part, the answer to this question depends on whether or not you’re continuing
to work at H&M. Many workplaces have clauses in their employee handbooks
that require their employees not to say negative or bad things about their
employer (i.e., a non-disparagement clause). Usually, this would prohibit actions
that could hurt your employer’s reputation. It may be wiser to support these
causes financially or less publicly. Again, the principle of self-interest comes into
play here.
