Ethics and Business Decision Making Business Ethics

Questions: 1.Why did Isabel Arnett make the business decision that she made? Justify your answer.2.This situation demonstrates among the major reasons precisely why ethical issues happen in business. What is the reason?3.Might an individual who adheres to the principle of rights think about it ethical for Arnett never to divulge prospective safety problems and decline to carry out additional study on Kafluk? Why or why not? Provide reasons.4.In case Kafluk averted fifty Asian individuals who were afflicted with bird flu from perishing, might that change the ethical contemplation within this scenario? Why or why not? Provide reasons.5.Did Tamik or even Arnett violate the Foreign Corrupt Practices Act within this scenario? Why or why not? Justify your answer. Answers: 1. Ms. Arnett made her decision in order to cover up for the unfortunate cases because publicity about these cases could hurt the sales of Kafluk. This could have even destroyed on the image of the entire company (Chell, Spence, Perrini Harris, 2016). If Kafluk prevented fifty deaths at the expense of six suicides, the cost for saving the fifty lives could not be worth the price of the six suicides cost. In the society, we usually place much value on the human health. For example, the food and the administration requires there should be no side effects to more than ten thousand patients (Ferrell Fraedrich, 2015). The actions of covering the side effects of the drugs was not ethical and it was wrong for what she did. 2. The main reason is the desire not to lose the sales. The main aim of the company is profit maximization (Ferrell Fraedrich, 2015). Arnett knew that if the negative publicity was to spread and the result of the research came up back negative, the substantial demand the business was encountering could dissolve, and the profit would reduce significantly. 3. No. Any individual who follows on the principle of Right theory could believe that people have the right to be warned of any potential safety and health concerns. Moreover, those individuals who adheres to the principle of right theory they always believe there is need to practice ethical business decisions (Craft, 2013). Those include the owners of the company, employees and the consumers of the product of organization. In the case of the company, Arnett clearly did not take into any account of the potential impacts of individuals outside the organization (Hartman, DesJardins MacDonald, 2014). If she had considered the effect of the drug on the consumers then, she could authorized the organization to execute study on the safety as well as the risk related to the drugs. 4. According to the utilitarian, they think that an action is morally appropriate particularly among the people it influences; it generates the greatest good to the greatest number (Craft, 2013). While fifty lives that were saved is greater than the six death it caused, but choosing to foregoing further research and not to warn the population on the effects of the drug, it must have caused more death than good and this is not ethical. 5. No, they did not violate on the foreign corrupt practices. The reason is that Tamik did not bribe any Japanese government officials they only paid money to the injured families (Ferrell Fraedrich, 2015). The purpose of the foreign corrupt practices was enacted for making unlawful for a given class of individuals as well as entities to make payment to the foreign government officials in order to seek assistance for retaining of business (Hartman, DesJardins MacDonald, 2014). In the case study presented, Arnett asked the Asian partners in Asia to offer cash settlement to the families in Japan whose children had died for the exchange of silence. Since the payment was not to the officials directly, they did not violate on the provision of the act. References Chell, E., Spence, L. J., Perrini, F., Harris, J. D. (2016). Social entrepreneurship and business ethics: does social equal ethical?. Journal of Business Ethics, 133(4), 619-625. Craft, J. L. (2013). A review of the empirical ethical decision-making literature: 20042011. Journal of Business Ethics, 117(2), 221-259. Ferrell, O. C., Fraedrich, J. (2015). Business ethics: Ethical decision making cases. Nelson Education. Hartman, L. P., DesJardins, J. R., MacDonald, C. (2014). Business ethics: Decision making for personal integrity and social responsibility. McGraw-Hill.