practice quizzes Flashcards
CFO Jane is concerned about overreacting to the bad press. She tells the group that she has concluded that a recall’s costs to the company far outweigh the benefit of such a recall to the public. It is virtually certain that no babies actually will be harmed and leaving the bibs on the market will ensure that low-income consumers, the biggest consumers of this bib, will continue to be able to afford a Consolidated-made bib rather than a bib produced by a less well-known company. The company’s shareholders are also likely to be harmed by a costly recall. She thinks the overall best solution is to leave the bibs on the market with a warning, including in the company’s advertising, that they contain trace amounts of lead and urges the team to agree with her recommendation. Which of the following theories of ethical decision-making has Jane followed in making her recommendation?
utilitarianism
John, from Marketing, agrees with Jane that Consolidated should leave the bibs on the market, agrees with adding a consumer warning to the bibs, but disagrees such a warning should be included in the company’s advertising. The company’s advertising never said or implied that bibs should be put in a baby’s mouth or that it was safe to do so. The company is not doing anything illegal, even with the trace elements of lead; the bibs still satisfy the government’s minimal standards. He recommends that the bibs stay on the market with the warning Jane suggests to ensure that customers are making an informed decision. John opposes including the warning in the company’s advertising, both because he feels it is unnecessary and because the costs of such a change in the advertising would come out of his department’s budget. “Look,” he told the group, “it’s not like the company is holding a gun to people’s heads to get them to buy Consolidated bibs, rather than those of a less well-known company.” Which of the following theories of ethical decision-making has John followed in making his recommendation?
Nozick’s rights theory.
Nguyen, out of Product Development, is disturbed by John and Jane’s recommendations to leave the bibs on the market. He is especially troubled by Jane’s comment that the popularity of these bibs with low-income customers was a reason that the company should not recall the product. That struck him as backwards and morally unacceptable. “Jane,” Nguyen interjects, “it is precisely to protect our most vulnerable customers that we should recall the bibs. If babies get sick from lead poisoning – even though we know that that is a remote possibility – they are unlikely to have access to proper medical care. I don’t care what the cost of the recall is. We have to recommend that the product be pulled, especially to protect this group of customers. It also will send the message that “’Consolidated Cares,’” a slogan we have used in the past.” Which of the following methods of ethical decision-making has Nguyen followed in making his recommendation?
Rawls’ theory of justice.
Pablo, of Corporate Communications, agrees with Nguyen that the product should be recalled. The cost of the recall, he believes, would be more than offset by the positive media attention that the company would receive by taking steps to protect the safety of its customers, even steps that the law did not require. Shareholders would benefit from the resulting increase in sales spurred by the company’s enhanced reputation and employee morale would rise from knowing the company did the right thing as a matter of both ethics and profits. The babies would benefit by removing lead from the environment, and parents would benefit from the peace of mind that accompanies keeping their children safe. Which of the following methods of ethical decision-making has Pablo followed in making his recommendation?
Utilitarianism.
You, a relatively new part of the executive staff of Consolidated’s CEO, have been brought in to observe the team’s discussion and to report back to him. Which of the following statements would not be true if you included it in your report?
No two members of the team used the same ethical theory in reaching their conclusions and that was a large reason for their disagreement
