Professor Kern

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The Nexus

Michael

In the reading “The Nexus of the Law and Ethics”, Professor Grundfest talks about making decisions as a business leader. He states that the decision should answer the question “Is it Smart” not “Is it ethical”. I understand that the individual wants any decision to be ethically sound and follow good values, but I hate to say it….you can never please everyone! I am in agreement with Grundfest and feel that when making a decision about a company the ethical emotion needs to be taken out of the equation and the smart decision needs to be made. Ultimately, I believe he is referring to the “smart” decision being the outcome that best benefits the company and not the individual.

Grundfest goes on to say that majority of the time the “smart answer” is also the “ethical answer”. One way of making the smart choice is by using a method from one of our readings called the “smell test”(Brooke, 2012). The smell test helps to sniff out a situation that could possibly involve actual or potential harm. To properly use the smell test one would throw the idea on the table, sit back, and ask the question of how something would appear if it showed up on the front-page of the newspaper or on the top news story. The company would use the results to make the “smartest” decision possible.

Another method listed in our readings is referred to as the “Common Good Test”(Brooke, 2012). This idea briefly sums up what I believe make a smart decision. Common good states that we should consider more than just the goods of individuals. A “smart” answer puts the needs of the business ahead of the individual. After the smart decision is made then the business leaders can start to comprise with the ethical dilemmas that may arise.

Jamie

Over time and geography ethics will change. This is not a valid reason to decide that ethical thought should be taken out of decision making in businesses. Ethics is a subject that businesses should always have in the back of their mind.  This means their decision making process will change with the evolution of ethical views. If a business only has in mind the ‘smart’ way of thinking when they have important decisions to make, they are at risk for losing customers, vendors and possibly even employees.

An example would be a food supplier, let’s call them “Benji’s.” Benji’s considers themselves to be one of the top organic food suppliers who deliver fresh, healthy snacks to their consumer. Their label states that they are 100% organic. In reality, they use pesticides when growing their vegetables and all of the livestock they own are treated with growth hormones. Benji’s decided to label their products as 100% organic because it seems to be a trend that’s growing and could increase their profit; it seemed smart from this standpoint.  From an ethical standpoint, they are lying to their consumer and advertising false information.  A better decision would be to advertise the truth.  If they don’t like what they’re advertising, they should make changes to the product. Once consumers find out the company was lying, they could decide to buy similar products from a different supplier.