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Part A: Ethical Scenario

You work directly for the mayor of a small upstate town, Honesty, NY, as controller. The town had financial difficulties in the past and came up with a way to raise money. The NYS Thruway runs near the town and there is a stretch of highway where there is a steep decline. Most cars hit 70 mph unless the driver has his/her foot on the brake. The idea was to put up a few signs indicating that the maximum speed limit in the county is 55 mph - photo enforced. The police installed some cameras at the top and the base of the steep hill. People exceeding the speed limit received letters in the mail with a choice: Pay $400 and no penalty points for speeding or appear in the Honesty, NY court to state your case. Of course, if you lose the case in court, you get points for speeding in addition to the fine, and your car insurance premium goes up. Since 99% of the people driving through do not live near Honesty, most people would rather spend $400 than waste a day in court. Going to court in Honesty often takes more than a day. In fact, the judge has been known to throw people in jail if they are disrespectful. The policy has been working quite well and revenues generated by tickets exceed $5 million a year. You have been thinking about the ethics of this. Should the mayor's office continue or discontinue the speed camera program? Identify at least 3 courses of actions or alternatives.

1 What is the ethical dilemma or issue?

2 What are the alternatives or possible courses of action? Identify at least 3 alternatives.

3 What are your recommendations? In other words, of the several alternatives you identified, what do you think the company should do?

4 What is your rationale for your recommendations? In other words, why do you recommend this course of action?

Part B: Ethical Scenario

You are the mayor of a small upstate town. The main source of jobs is a state prison which is located there. You have heard that some towns allow prison-cell upgrades at a cost of $100 per night. For this charge, nonviolent offenders can get quiet, private cells with showers, computers and televisions away from other prisoners. You are not sure whether or not this is ethical. However, the town needs money and this can generate several million dollars in extra revenue that can be used to upgrade its schools. Should the mayor allow or not allow prison-cell upgrades? Identify at least 3 courses of actions or alternatives.

1 What is the ethical dilemma or issue?

2 What are the alternatives or possible courses of action? Identify at least 3 alternatives.

3 What are your recommendations? In other words, of the several alternatives you identified, what do you think the company should do?

4 What is your rationale for your recommendations? In other words, why do you recommend this course of action?

Part C: Ethical Scenario

You own a small business that manufactures a popular, sugary beverage. To keep costs down, you sweeten the beverage with very cheap high-fructose corn syrup. The drink contains the equivalent of 9 teaspoons of sugar. Evidence is mounting that soft drinks are responsible for the obesity epidemic in the United States-more than two-thirds of American adults are overweight and more than one-third are obese. Your children have been complaining about the fact that you are selling an unhealthy product. Of course, the product is paying for their college tuition. You do not have the money to do what the big soft drink companies have done -- diversify and also sell healthier beverages. What should you do? Should the owner continue or discontinue selling beverages with high-fructose corn syrup? Identify at least 3 courses of actions or alternatives.

1 What is the ethical dilemma or issue?

2 What are the alternatives or possible courses of action? Identify at least 3 alternatives.

3 What are your recommendations? In other words, of the several alternatives you identified, what do you think the company should do?

4 What is your rationale for your recommendations? In other words, why do you recommend this course of action?

Part D: Ethical Scenario

You are the CEO of a chicken-processing company. The Vice President of marketing informs you that if you label your chicken as "free range" you can charge 20% more and greatly improve profit margins. You find out that all that needs to be done to legally use the term "free range" is to open the door to the henhouse for 5 minutes a day. This provides the chickens with access to the outdoors when, in fact, very few chickens will wander out when the door is open for 5 minutes. Moreover, the term "free range" may be used regardless of space per chicken, number of chickens, or amount of time spent outside. Should the CEO use the term "free range" on the label or not use the term "free range"? Identify at least 3 courses of actions or alternatives.

1 What is the ethical dilemma or issue?

2 What are the alternatives or possible courses of action? Identify at least 3 alternatives.

3 What are your recommendations? In other words, of the several alternatives you identified, what do you think the company should do?

4 What is your rationale for your recommendations? In other words, why do you recommend this course of action?

Business Law & Ethics, Finance

  • Category:- Business Law & Ethics
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