Describe the Questions That a Manager Should Ask Under the Practical

question 33

Essay

Describe the questions that a manager should ask under the practical rule to decide if a business decision is acceptable on ethical grounds.
Under the practical rule a business decision is probably acceptable on ethical grounds if a manager can answer yes to each of these questions:
• Does my decision fall within the accepted values or standards that typically apply in business activity today?
• Am I willing to see the decision communicated to all people and groups affected by it-for example, by having it reported in newspapers or on television?
• Would the people with whom I have a significant personal relationship, such as family members, friends, or even managers in other organizations, approve of the decision?

---

Definitions:

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Direct Payment

The monetary compensation paid directly to employees in the form of wages, salaries, commissions, and bonuses.

Goal-Sharing Plans

Incentive plans that reward employees for reaching specific organizational goals, similar to gain-sharing but often broader in scope.

Gain Sharing

A performance-based compensation strategy that rewards employees for contributing to their company's success through increased efficiency or profitability.