Charles G. Koch, chairman & CEO of Koch Industries- a company estimated to be worth $100 billion -
released a book this month. On Pg.7 of the book, Koch talks about his company's opposition to gov.t
subsidies, or 'corporate welfare' (term coined by Ralph Nader, an Am. pol. activist) including those that
would seem beneficial to us on the surface & maintains that it " relieves recipients of constructive
pressure to innovate & create value for society, hinders the unsubsidized competition by coercion, &
limits the choices available to consumers." Koch's opposition to corporate welfare is most aligned w/:
- correct answer • Nozick's Right's Theory.
Aeronautics giant Boeing fired 2 internal auditors for leaking documents & info to a reporter regarding
alleged flaws in the company's internal audit of its Information Technology control systems. The
company convened an employee review board & determined that the leaks constituted grounds for
termination of employment. The auditors sued under Sarbones-Oxley, saying their leaks to the press
were protected under the law. Who wins & why?
- correct answer • Boeing because Sarbones-Oxley doesn't protect whistleblowing to the media.
In our 1st class meeting, we discussed the meaning of morals vs. ethics. Although they are often
interchangeably:
- correct answer • Morals & ethics are technically diff in that, for example, an attorney may not
necessarily, be disciplined for behaving immorally, but he/she can be disciplined-even disbarred- for
behaving unethically.
- Morality is internal; essentially a personal compass of right & wrong, unique to the individual, &
generally becomes one's guiding force in life to help 1 choose a course of action when faced w/ a
dilemma.
- Ethics is external- that is, rules of conduct recognized by a particular group or culture, such as a
community, company, professional group, family, etc.
On April 11, 2011, NY Times reported that the Garnett news corp. decided to require lower ranked
employees take unpaid furlough days during the coming year. At the same time, according to the article,
the company substantially increased the pay of the two top executives. Their compensation moves are
LEAST consistent w/
- correct answer • Rawl's Theory of Justice.
In a Nov. 23, 2011, BusinessWeek column, prof. Barry Schwartz wrote that " some might say banking has
no moral dimension to take away." But he also notes that bankers are not only interested in a profit but
, are also aware of their social responsibilities. He notes that "bankers worried about helping farmers get
this year's seed into the ground. They worried about a couple in their 50s having enough to retire on, &
about one on their 30s taking on too big a mortgage. These bankers weren't saints, but they served the
dual masters of profitability & community service." The focus of bankers according to this column is
most in line with:
- correct answer A stakeholder's orientation
Barbara Boss, the CEO of worldwide widgets, scored a perfect "J" (Justice) score on the Ethical
Orientation Questionnaire. Which of the following actions is she LEAST likely to take?
- correct answer • Make an exception to worldwide widget's company policy prohibiting loans to
employees by extending a short-term loan to an employee who needs immediate cash to avoid losing
his home to foreclosure.
In our 2nd class meeting, we discussed the case involving the whistleblower, Dr. Wigand, & the tobacco
industry, Dr. Wigand revealed that the tobacco & cig industry's "international manipulation of nicotine,
known as 'impact boosting' by his former employer, Brown & Williamson." Wigand wanted the public to
know about the highly addictive, potentially lethal properties of tobacco; that smokers often developed
a life-long addiction, leading to a myriad of diseases-including cancer & cardiovascular diseases. In his
decision to make public the tobacco industry's dirty secret, he said, " The word whistleblower suggests
that you're a tattletale or that you're somehow disloyal... But I wasn't disloyal in the least bit. People
were dying. I was loyal to a higher order of ethical responsibility." Dr. Wigand's decision to blow the
whistle is MOST consistent w/:
- correct answer Utilitarianism
Bob is a recent SDSU business graduate who works at Surfboards Inc., a local surfboard manufacturer.
His goal is to move up in the organization & ultimately become CEO. Bob is an Objectivist, so his plans
are most likely to include:
- correct answer • Working long hard hours & doing the best job he possibly can, & studying the next
higher job at night so that he is most qualified for the next promotion that comes up.
The owner of a local Ferrari distributorship was interviewed by Rascar magazine for an article about the
marketing of expensive 'hot shot' cars. He tells the interviewer that, for 2 reasons, he wants to make
sure that the buyer doesn't get in any accidents. 1st, he genuinely cares about his customers; many of
whom he knows through local business organizations, & doesn't want to see them get hurt. 2nd, he
knows that any accident involving a hot shot car will make the news & ultimately hurt his business by
focusing attention on the dangers of driving the cars may pose. The Ferrari distributorship owner
interest in making sure his customers know how to drive safely before buying the expensive cars he sells
appears to be guided by which 2 ethical theories?
- correct answer • The ethic of care & objectivism.