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Ethical Problem and the Ethical Decision Model

Set forth an ethical problem that arose in your current or a former place of employment. Then, show how this problem could have been resolved by using the Ethical Decision Model (pp. 112-120). Be sure to use all four steps in the model.

Professional Development

1. Keeping in mind the principles of distributive justice and "ordinary decency," how do you think employee compensation should be determined?

2. Is it ethical to give an employee less than full value for his or her services if the employee accepts such compensation, or should an employer always pay an employee what the employer believes to be the employee's full value? Explain.

Issues to Consider

1. Sternberg argues that certain kinds of insider trading are ethical, whereas other kinds are unethical (pp. 187 - 195). Set forth your understanding of insider trading and whether or not you believe such trading to be ethical or unethical and why.

Solution Preview

Set forth an ethical problem that arose in your current or a former place of employment. Then, show how this problem could have been resolved by using the Ethical Decision Model (pp. 112-120). Be sure to use all four steps in the model.

Ethical Decision Model. This is the systematic approach to problems. It addresses to which problems businessmen actually need to care in their business capacities, and offers a way to resolve them. It is consisted of four steps:
1. Clarify the question of ethics
Depending on who asks the question, questions can be flawed. Like "when did you stop beating your wife?" is such a question. You must differentiate the faulty matters at the issue, first.

* Question: Does the head of personnel want to be generous to the employees?

2. Determine its relevance for this business
a) Is the issue relevant to business (in other words is it relevant to maximizing long term owner value?)
b) Is it relevant to this business?
c) Is it a problem for this business?

* Yes for as long as his generosity enhances the productivity or the company's image or perhaps to attract the best staff and that the rewards are proportional to contributions which in effect, can helping maximizing long-term owner value.

3. Identify the circumstantial constraints
Once the relevance is determined, next step is to identify the constraints that may limit solutions. Business decisions are constrained by laws and regulations, contracts, cultural/economic/physical/technical considerations. These are variable inputs.

? It will affect the budget of the company depending on how much the agreed financial equivalent of the 'generosity' will be.
? There is a need to make sure that the generosity will prove to be rewarding and that the expected outcomes will be met.

4. Assess available options
How alternative solutions measure up against maximizing long-term owner value and respecting distributive justice and ordinary decency.

* An organization's generosity can take a long way to improving employees' self-esteem and ...

Solution Summary

The solution discusses an ethical problem in a workplace environment and solutions to resolve the problem using the Ethical Decision Model is also explained. Also discussed is an opinion on how employee compensation should be determined based on the principles of distributive justice and 'ordinary decency.' The question on the ethical consideration of giving an employee less than full value for his or her services if the employee accepts such compensation and insider trading are also explained. References included.

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