Practice of Decisions that Determine an Action Is Right or Wrong Project

PROJECT TWO RUBRICSBUSINESS LAW
You have two options from Chapter 2 of your textbook to consider for work
on Project Two:
•
•
The ethical tests and frameworks in Appendix 2A
The WH framework described within the chapter please use this option.
Competency
In this project, you will demonstrate your mastery of the following
competency:
•
Differentiate between matters of law and matters of ethics in business
situations
Scenario
A few years ago, Clare Applewood started a small outdoor equipment
business called Mountain Top View. The company is a sole proprietorship. The
company began as a single storefront and has grown rapidly to include online
ordering through the company website. The company’s website includes the
statement, “We are committed to keeping customer information secure and
protected.” Clare also uses social media sites to market the company.
Carlos Rodriguez has worked for the company since the beginning. He
oversees both store and online operations. Clare and Carlos make most
decisions together.
Steve, the company’s Information Technology lead, discovered that the
company database of customer information was hacked. Customer names,
addresses, and phone numbers were accessed for only those customers who
placed online orders in the first quarter of the year. Steve was able to correct
the code that allowed the hack and is confident that the database is now
secure.
When Carlos overhears Steve talking about the database fix in the store break
room, he questions Steve about why he did not bring the breach to anyone’s
attention. Steve explains that because he was able to quickly correct the code
that led to the breach, and because only address and phone number
information for a handful of customers was accessed, he didn’t think it was
necessary to say anything.
Clare asks Carlos to evaluate whether the company has an ethical and/or legal
obligation to report the breach to their customers and to recommend a course
of action. She also asks Carlos to select an ethical test or framework that all
employees can use in the future to help guide their decisions.
Directions
Report
Evaluate whether the company has an ethical and/or legal obligation to report
the breach to its customers. Your evaluation should be framed as a report for
the owner, Clare, that includes the following sections and information. Cite
your sources using APA style.
1. Introduction
A. Include a definition of ethics and explanation of how ethics
compares to law.
B. Provide an explanation of corporate social responsibility and how
it relates to ethical business practices.
2. Analysis
A. Provide a summary of the ethical and/or legal issues involved in
this situation.
B. Briefly describe the relevant stakeholders, the key facts, and the
potential implications or impact of the situation.
3. Recommendation
A. Provide your recommendation for a course of action supported by
relevant resources, such as specific laws and commonly accepted
ethical practices.
B. Explain the reasoning behind your recommendation and use
reliable sources, such as the textbook and other course resources,
to support your position.
4. Conclusion: Describe how advances in technology in today’s business
world have both legal and ethical implications.
Ethical Test or Framework
Select a test or framework for all employees in this company to use.
Demonstrate how it can be used when faced with an ethical dilemma. Cite
your sources using APA style.
1. Test or framework
A. Select a text or framework option from among those described in
the textbook.
B. Name the option you selected and describe the test or framework,
including its advantages and potential shortcomings.
C. Explain why the test or framework that you selected is appropriate
for this company; justify your selection.
2. Apply the test or framework to the scenario to demonstrate how
Steve could have used it to guide his decision making and actions.
What to Submit
To complete this project, you must submit the following:
Report
Your submission should be a 3- to 5-page Word document with 12-point
Times New Roman font, double spacing, and one-inch margins. Sources
should be cited according to APA style.
Ethical Test or Framework
Your submission should be a 1- to 2-page Word document with 12-point
Times New Roman font, double spacing, and one-inch margins. Sources
should be cited according to APA style.
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The WH Framework for Business Ethics
LO 2-3
Analyze business decisions using the WH framework.
A useful set of ethical guidelines requires recognition that managerial decisions must meet the following primary criteria:
• The decisions affect particular groups of stakeholders in the firm. The pertinent question is thus, Whom would this
decision affect?
• The decisions must meet the standards of action-oriented business behavior. Managers need a doable set of guidelines
a
for How to make ethical decisions.
The remainder of this chapter explains and illustrates this framework. See Exhibit 2-2 for a summary of the key WH
elements.
Exhibit 2-2 The WH Process of Ethical Decision Making
1. W-WHO (Stakeholders):
Consumers
Owners or investors
Management
Employees
Community
Future generations
2. H-HOW (Guidelines):
Public disclosure
Universalization
Golden Rule
WHO ARE THE RELEVANT STAKEHOLDERS?
a
Page 23
The stakeholders of a firm are the many groups of people affected by the firm’s decisions. Any given managerial
decision affects, in varying degrees, the following stakeholders:
1. Owners or shareholders.
2. Employees.
3. Customers.
4. Management.
5. The general community where the firm operates.
6. Future generations.
When you consider the relevant stakeholders in a business decision, try to go beyond the obvious. In the Case Nugget that
follows, Maria’s encounter with her company’s vice president clearly highlights certain common interests of management
and its employees. However, a useful exercise for all of us is to force ourselves to think more broadly about additional
stakeholders who may be affected just as much in the long run. Then we will be less likely to make decisions that have
unintended negative ethical impacts.
Maria’s ethical dilemma is complex. Many of the issues in the dilemma pertain to her career and the welfare of her firm.
But consider the many stakeholders whose interests were not introduced into the conversation. When we overlook
important, relevant stakeholders, we are ignoring a significant component of ethical reasoning.
HOW DO WE MAKE ETHICAL DECISIONS?
Making ethical decisions has always been one of our most confusing and important human challenges. In the process of
meeting this challenge, we have discovered a few general, ethical guidelines to assist us. An ethical guideline provides one
path to ethical conduct. Notice that all three ethical guidelines below reflect a central principle of business ethics:
consideration for stakeholders.
Page 25
The Golden Rule. The idea that we should interact with other people in a manner consistent with the way we
would like them to interact with us has deep historical roots. Both Confucius and Aristotle suggested versions of
that identical guideline. One scholar has identified six ways the Golden Rule can be interpreted:
1. Do to others as you want them to gratify you.
2. Be considerate of others’ feelings as you want them to be considerate of yours.
3. Treat others as persons of rational dignity like you.
4. Extend brotherly or sisterly love to others, as you would want them to do to you.
5. Treat others according to moral insight, as you would have others treat you.
6. Do to others as God wants you to do to them.
Regardless of the version of the Golden Rule we use, this guideline urges us to be aware that other people—their rights and
needs-matter.
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Dynamic
Business Law
Dynamic Business Law, 5e
Nancy Kubasek, 5e