Business Law

Mario Garcia

Business Scenarios and Case Problems Chapter 7

7-1. If Trevor had followed the six basic guidelines for making business ethical decisions he would have not sold these products. Selling goods that once tested positive for salmonella is totally unethical. This being said, Trevor did not follow the basic guidelines, which consist of: the law, rules and procedures, values, conscience, promises, heroes. He did not follow the last 4 basic guidelines.

7-2. One of the perspectives can be under the utilitarian standard. When applying the utilitarian standard threes steps have to be follow:

* If the action is done, individuals being affected by this action have to be determined.

* A cost-benefit analysis can be done to show the negative or positive effects on the individuals for alternative actions.

* Finally, choose the alternative that will produce the maximum societal utility.

The other perspective can be based under the concept of duty, which talks about that “the end can never justify the means and that the human beings should not be treated as mere to an end”.

7-3. Pfizer's ethical responsibility here, needs to be based under the theory of Corporate Citizenship, Pfizer's should act as good citizen by promoting goals and solving social problems by taking positive steps. As their products are used to produce dangerous products, the wealth and power this corporation has, needs to be used in a certain way in socially beneficial ways.

7-4. No, it is not a basis for legal liability because ethical codes may have significance I evaluating a n company’s conduct, but they are not rules of law. Prudential’s violated its own guideline and this can be seen as wrongful. However, Havensure cannot establish a cause of action against Prudential because it violated its own rules.

7-5. Manager’s attitudes and actions can affect the workplace. Managers must set standards to employees, but this standards need to be follow not only by the...