In the Feature Managing Ethics: Ethical Implications of Defined Contribution

question 31

Essay

In the feature Managing Ethics: Ethical Implications of Defined Contribution Plans, IBM froze its defined benefit plan and began automatically enrolling employees in a 401(k) plan. What steps did IBM take to help protect its employees against the downside risks of 401(k)s?

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Definitions:

Unsolvable Problems

Issues or challenges that cannot be resolved or fixed, often due to their inherent complexity or constraints.

Biological Constraints

Limitations on learning that result from biological factors rather than from experience or environment.

Instinctual Behavior

Behaviors that are innate and driven by genetic coding, often performed in response to certain stimuli without prior learning.

Negative Reinforcement

A process in behavior modification where the removal of an unfavorable outcome or stimulus strengthens a behavior, encouraging its repetition.