Scenario B

question 38

Multiple Choice

Scenario B. Use the information given below to answer the following three questions:
A sales manager is facing an ethical situation wherein his toy company sold a scooter with a defective component. If he informs the customer and issues a recall, it would cost him a substantial amount of money. If the toy malfunctions, it could cause serious injury to the child playing with it. His colleagues have suggested three options:
Option 1: Keeping quiet about the defect
Option 2: Reviewing company policy, toy industry practices, and advice from colleagues
Option 3: Disclosing the defect and suggesting alternatives to eliminate the risk of injury
AACSB: Reflective Thinking
Blooms: Apply
Topic: Five Perspectives Shape Your Ethics
-Which ethical approach is illustrated by option 2?

• A) Egoism
• B) Utilitarianism
• C) Relativism
• D) Virtue ethics
• E) Universalism

---

Definitions:

Organizations

Entities composed of people working together towards common goals, structured to coordinate their activities.

Part-Time Workers

Employees who work fewer hours than the full-time work schedule, often with fewer benefits and responsibilities.

Violence

The use of physical force to harm someone, inflict damage, or intimidate or coerce others.

Cool Off

A period or process of allowing emotions or tension to diminish or relaxing after a period of stress or confrontation.