Which the Following Decision-Making Scenarios Presents an Ethical Dilemma

question 3

Multiple Choice

Which the following decision-making scenarios presents an ethical dilemma?

• A) A disgruntled employee of one of your competitors has offered to reveal details of his company's new strategy if you were to hire him. This competitor has in the past poached key executives from your company and engaged in industrial espionage in other ways.
• B) You are manager of a large facility in a country where paying bribes to public officials is a way of life. Your company has a zero-tolerance policy toward bribing, but the officials are threatening to close down the factory, rendering several thousand workers jobless, if you don't comply.
• C) It has been brought to your notice that the company competing with you for a major contract is trying to bribe and influence decision makers in a bid to get the contract. Some of your executives feel that your company should also do the same because getting this contract will make a big difference to the company's future.
• D) The last inspection at your plant revealed structural problems with some of the buildings that, if not fixed immediately, could compromise worker safety. However, your company is low on funds and taking on repair work will push the company into the red.

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Definitions:

Financial Break-Even

The point at which total revenues equal total costs and expenses, leaving no net profit or loss.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business venture for the first time.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue.