Refer to the materials for this week to answer the following questions. Cite any quotations or paraphrases. An A paper will demonstrate engagement with the... [Show More] materials by using quotes or referring to the sources used for the answer.
1. Market ethics in itself does not include a requirement that market actors consider any interests but their own. How does this conflict with gospel values?
2. A company doesn't buy provide health insurance for their employees.
A. How would economists describe this?
B. In the Collins article what was this called?
3. Four factories located around a lake are polluting the water to the point that in a few years they will all be forced to shut down. If one factory buys filters, but the other three don't, the lake will still be polluted. So the rational choice for each factory, not to buy filters, results in a bad outcome -- a polluted lake. This is an example of a market failure known as what?
4. Define and give an example of fraud. Why is it unethical in market ethics?
5. A business hires an interior designer to redecorate their offices. Is the designer an agent or a fiduciary of the company? Why??
Employees of Toys’R’Us allegedly bought inventory from their competitor Child World, during a promotion in which customers received a $25 gift certificate for spending $100. The employees were accused of buying items such as diapers, baby food and formula which are sold at close to cost. These items could be resold by Toys’R’Us at a profit – the price was just above wholesale and the gift certificates meant Toys’R’Us could get free merchandise to sell.
Child World state that the promotion excluded dealers, wholesalers, and retailers. Child World claimed that Toys’R’Us bought up to $1.5 million worth of merchandise and received as much as $375,000 worth of gift certificates. Executives at Toys’R’Us did not deny the claims and contended this was common practice in the Industry.
6. Toys’R’Us claimed that this was just normal business, that they were playing hardball. Which point of market ethics would support their claim?
7. Child World claimed this was unfair business practice? How could they defend their claim?
Think about this as if you were an employee of Toys’R’Us.
8. What would be involved for you in participating in this scheme?
9. As an agent of the company are you required to follow your managers’ orders?
10. What conflict with your personal morality might you have?
Think about this as a manager of a Toys’R’Us store.
11. What would be involved for you in participating in this scheme?
12. What conflict with your personal morality might you have?
13. As an agent of the company are you required to follow your senior managers’ orders?
14. How do the actions of fellow employees and your manager change your view of morality?
Think about this as a senior executive at Toys’R’Us.
15. What would be involved for you in participating in this scheme?
16. What conflict with your personal morality might you have?
17. How do the spheres of morality conflict for you in this case?
Now look at each role from the point of view of the Six Principles from the VBL
18. What principle(s) would you be following (or violating) as an employee?
19. What principle(s) would you be following (or violating as a manager?
20. What principle(s) would you be following or violating as a company leader? [Show Less]