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. -4. Ethics An excellent answer would clearly delineate the differences between

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.    -4. Ethics An excellent answer would clearly delineate the differences between each of the standards for ethical decision making and would persuasively make the case for a particular solution. 3 Sarah Goodwin was a recent MBA graduate who was interested in retailing. She had been delighted to receive a job offer from a large and prestigious department store chain. The first year of employment at this chain was considered a training program, but formal instruction was very limited. Each of the new trainees was assigned to work as an assistant to a buyer in one of the departments. The intent was that the trainees would work with five or six buyers during the year, rotating assignments every two months and would make themselves “useful” enough during those assignments so at least one buyer would ask to have that person join his or her department on a permanent basis. Buyers are critical in the management of a department store. They select the goods to be offered, negotiate terms of purchase, set retail prices, arrange displays, organize promotions and are generally responsible for the operation of the departments within the store. In this particular chain, each department acted as a profit center and sales and profits were calculated on a per square foot basis. Buyers competed, on a friendly basis, to outperform each other so that their square footage would be expanded. The buyers received substantial commissions based on monthly profits. Sarah’s first assignment was to work for the buyer in the gourmet foods department. The buyer for gourmet foods, Maria Castellani, was a well-known personality throughout the company. She was considered competent, witty, and sarcastic. She had strong ties with most people in the company and it seemed that everybody in the store seemed to find a reason to stop by the gourmet food department at least once during the day to chat with Maria. Sarah was naturally included in these conversations, and consequently, she was getting to know all the other buyers. This networking made it easy for her to build relationships with other buyers for her future assignments. For the first five weeks of her employment, Sarah was exceptionally happy and pleased with her career choice. She felt that she was performing well in her first job, and making sensible arrangements for her next assignment. Then, an event occurred that called her contentment into question:

MGT303 EXAM POOL QUESTIONS

We received a shipment of thin little wafers from England that have a crème filling. They were packaged in foil-covered boxes, but somehow they had come to be infested with insects.

We did not think that all of the boxes were infested because not all of the customers brought them back. However, some people did and, obviously, we could not continue to sell them. We could not inspect the packages, and keep the ones that were not infested because there was too many—about $12,000 worth— and because we have had to tear the foil to open each box. Maria said that the manufacturer would not give us a refund because the infestation doubtless occurred during shipment, or even during storage at our own warehouse.

Maria told me to get rid of them. I thought she meant for me to arrange to have them taken to the dump, but she said, “Absolutely not. Call (name of the executive) at (name of discount convenience store chain). They mainly operate in the inner city and they can sell anything. We’ve got to get our money back.”

Describe how someone in Sarah Goodwin’s position might respond to this situations consideration each of the ethical perspectives (utilitarian, rights, fairness or justice, common good, virtue) we discussed in class. Of these, either individually or in combination, what course of action would you favor and why?

Explanation / Answer

First, we list out the options. We chose based on comparing the options; not just looking at one in isolation. Maria has two options as of now:

Utilitarianism – here a decision is made so that to cause the greatest good for the greatest number of people or least harm to the greatest number of people. It is based on the norm- ends justify the means.

We compare both options. The first one is better than the second one.

The first option – ‘dump the wafers,’ is the one that causes the least harm to all. Hence, based on the utilitarianism principle dumping them all together so that no consumer uses it, is the decision made

Virtue approach- here we make a decision so that we standby ideal virtues like Honesty, courage, compassion, integrity, fairness etc.

Selling to some other department store is passing bad goods to some other consumer through another middleman. It is against many virtues - fairness in the treatment of all equally and compassion towards others. Hence the second option is ignored

The first option stands for virtues like honesty, fairness, and compassion towards all. Hence, based on Virtues approach we choose the first option

Fairness Approach – a decision is made so that all members of the society are treated equally. This is based upon an equitable and fair distribution of benefits and costs.

The second option- passing the goods to discount store consumers causes harm to them but deflects the harm for Maria’s consumers-unequal distribution of costs/harm. We ignore the second option.

The first option helps in equal distribution of justice by preventing harm for all

Rights approach- Here we make a decision so that moral rights of all members affected are respected

When we use the second option, we disrespect the moral rights of discount store users- right to be told the truth and the right not to be injured. Hence this option is not applicable.

The first option respects the moral rights of all involved

Common good approach- the decision that causes common good for all is taken

Using the second option, Maria harms some consumers while saving some

The first option is the one that helps in common good for all. Hence the first one is the choice.

The first option of dumping is the one that can be taken whether by using the above ethical principles individually or in combination. Hence I would favor this one for Maria