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Business Law - Ethics Case Study Assignment Help
Task:-
Assessment item #1: Ethics Case Study (Dilemmas)
Dilemma 1: the credit manager
John is an employee of an Australian company that recovers outstanding debts for other
businesses. John’s job involves negotiating these “debt settlements” – he contacts the
individual and tries to agree on a repayment plan. If they fail to reach an agreement, he takes
the next step of commencing debt recovery in court. John’s company is paid a substantial
fee for every debt that is referred for court action.
John decides that he can earn his company more fees if he just commences legal action
without contacting each debtor. It will also make his job a lot easier. You can assume
that this approach is legal. By deliberately not contacting each debtor, John estimates his
productivity will double and he has also been promised a promotion if he can improve his
productivity. Is it ethical for John to change his approach, or should he continue contacting clients?
Dilemma 2: The overachieving non-profit
In 2017 Hurricane Harvey devastated Texas, USA. There was international sympathy for
the victims of this disaster and billions of dollars were donated. This led to a fairly unique
problem: the public was so generous that too much money was donated. In fact, it would
never be possible to spend it all on dedicated hurricane relief - all those affected could be
assisted and there would still be plenty of money left over.
Imagine you are the manager of a non-profit organisation who had asked for and
received $5,000,000 from donors to provide relief for victims of Hurricane Harvey. You
genuinely set out to help people and indeed provide emergency relief. However, over half
of what you received could not possibly be spent on the purpose for which people gave it
to you.
From an ethical perspective, should you keep the money for another cause which the
the donor didn’t specify?
Dilemma 3: the dodgy sales assistant
You work as a sales assistant for a family run business – a small retailer of technology-
based products. Earlier that morning, your manager explained that sales were down and
the business was failing. It is likely that the store will close if sales do not increase. Due to
declining revenue, your manager is concerned that she will not be able to pay her
children's school fees for the upcoming term.
An elderly customer enters the store to purchase their first laptop. The customer has very
little understanding of technology-based products. The laptop the customer is interested
in is nearing the end of production since a newer version of the product is due to be
launched in a few days.
From an ethical perspective, should you inform the customer that a newer version is on
the way, and suggest that they wait until next week so that they can either purchase
something better or purchase the older version at a significantly lower price?
Dilemma 4: the zealous airline security officers
A key clause of the contract for air travel is that an airline has absolute discretion to
change your flight (i.e. they can change it for any reason whatsoever). As a result,
airlines have a policy of over-booking flights.
In this case, an airline has overbooked its flight and has, unfortunately, provided
boarding passes to too many people. As a consequence, they do not have enough seats
and need one person to leave the plane. They have selected the passenger but he is
refusing to leave the plane after repeated requests by the airline staff.
Assume airlines have the legal right to remove passengers. You can also assume that
zealous security staff can forcibly remove the passenger and that the passenger would
resist. While forcibly removing the passenger would leave the elderly individual bloodied
and dishevelled with minor injuries, the plane would get away on-time.
If you don’t remove the passenger, you will have to wait at least 90 mins for police to
arrive to deal with the situation, irritating the remaining 263 passengers. It would also
mean delays and rescheduling for several other flights and penalty rates for staffing due
to knock-on scheduling conflicts.
From an ethical perspective, should you forcibly remove the passenger?
Dilemma 5: the rogue TV star
You are a major national television network and one of your key stars is in the spotlight
with allegations of heavy drinking and infidelity. This is a breach of her contract with you
(i.e. bringing the network into disrepute) as your values include being ‘family friendly’.
The star is well-loved by a sizeable target market group that is critical to the network.
Focus group research reveals that the target group do not care about this behaviour – in
fact the star’s persona as a “boundary pusher” is entirely in line with the behaviour.
This target market will react badly if you sack the star and likely stop watching the show
in which she appears. The majority of the community is mildly disapproving. There is a
very small, vocal minority who are outraged and engaging in a social media campaign to
bring the star down.
Should you, from an ethical perspective, sack the star?
Dilemma 6: dodgy data sales
You have founded your own business which relies on an app that tracks people’s
interaction with their pets. While the app is well-used, your business model is not paying
off – in fact, after three years of eating virtually nothing other than 2 minute noodles,
you might have to close the business.
A pet sales company comes to you, offering to buy the data on pet usage. While your
customers have agreed to unlimited use of their data, you have previously emphasized
that you will not sell or rent their data. Market research indicates that this is a major
part of the reason for the success of the app.
Without selling the data, your business will fold. Ethically, should you make the deal?
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