Question

Text- Moral Issues in Business, 13th Edition, by Shaw and Barr

1) Which of the following would be a morally questionable motive for whistle-blowing?

a) Hoping to gain financial payment for releasing information.

b) The desire to prevent harm

c) The whistle-blower has compelling evidence that wrongful actions have occurred.

d) The whistle-blower has carefully considered her or his options

2) Some companies restrict employees who quit from joining a competitor for amount of time because

a) The company wants to prevent competitors from hiring competent employees.

b)It is a punishment for showing disloyalty by quitting.

c) The company want to ensure that trade secrets are not used by a competitor.

d) To create illusion that they have “competitive secrets” and thus increase the values of shares in the company.

3) Why is conflict of interest a moral problem?

a) It creates a situation in which a person may be tempted to make decisions that are contrary to their employers best interests-contrary to the job the person was hired to perform.

b) There is no moral problem that arises in so-called “conflict of interest” cases

c) Because is such cases it is highly likely that utility will not be maximized.

d) Because only individuals know, for themselves, what is in their personal best interest.

4) The concept of an “insider” can be difficult to define. How is this defined by Securities and Exchange Commission (SEC)?

a) A person who buys or sells stock based on sensitive or confidential information that has been “misappraised.”

b) Anybody who invests in a company but also works for that company.

c) Anybody who invests in a company but works for, or who is related to someone who works for, the company.

d) Stockbrokers and financial advisors who invest themselves but who do not advise their client about those stocks.

Answer 1

Text- Moral Issues in Business, 13th Edition, by Shaw and Barr

1) Which of the following would be a morally questionable motive for whistle-blowing?

c) The whistle-blower has compelling evidence that wrongful actions have occurred.

Analysis: Whistleblowing is a morally supportive action. There must be a question regarding the moral intention of the whistleblower as he has alerted after the occurrence of the wrong incident.

2) Some companies restrict employees who quit from joining a competitor for amount of time because

d) To create illusion that they have “competitive secrets” and thus increase the values of shares in the company.

Analysis: Ethically a company does not have the right to stop an employee from joining its competitive organization. However, most of the organizations do it as a gesture of its competitive strategy. The organizations aim to create an illusion to keep their competitive secrets safe from competitors to increase value in market share.

3) Why is conflict of interest a moral problem?

a) It creates a situation in which a person may be tempted to make decisions that are contrary to their employers’ best interests-contrary to the job the person was hired to perform.

Analysis: Conflict of interest creates a situation where two separate interests contradict each other. Thus, it creates a morally degradable situation where a person is forced to make such policies which oppose the interest of employees who are hired.

.

4) The concept of an “insider” can be difficult to define. How is this defined by Securities and Exchange Commission (SEC)?

d) Stockbrokers and financial advisors who invest themselves but who do not advise their client about those stocks.

Analysis: Insiders are those who do not maintain stock of public companies. However, they do no break information to their clients. Thus, Option‘d’ is perfect.