Week 4 Assignment This assignment is based on material covered in Modules 1 to 4. It is out of 50 marks, and is worth 15% of your final course grade. Please submit a typed response by the due date....

Week 4 Assignment

This assignment is based on material covered in Modules 1 to 4. It is out of 50 marks, and is worth 15% of your final course grade.

Please submit a typed response by the due date. Late submissions will receive a reduction of 15% for each late day.

Part A — Online Group Discussion and Ethical Scenario Analysis (10 marks)

The following are questions regarding the Competitive Advantage scenario on pages 22-23 of the course text.

1. Do you think that APEX project manager Alex Franklin will look at or perhaps even copy the Computer Solutions file left by the vice-president of First Street Bank, Sean McBride?

2. What are the main risks and benefits of Franklin looking at and not looking at the Computer Solutions file?

3. What is fair competition in the circumstances and context described?

4. Would any changes in the circumstances and context of the scenario make you change your mind about your responses to the preceding questions?

Required:

Write a report (750 words or less) that addresses the four questions noted above.

Up to10 markswill be awarded for the nature and depth of your answer.

Answer-

Part B — Short-Answer and Multiple-Choice Questions (10 marks)

1. List the three main traditions in ethics, and provide a one-sentence description of each.(3 marks)
   
   


2. Which of the following best describes thequis custodietproblem?(1 mark)
   
   




1. It is an issue that only affects companies in the private sector.


2. It requires only legal solutions.


3. It points to the need for trustworthy watchers.


4. It can generally be addressed by having webcams pointed at the watchers.
   




3. According to Maslow’s hierarchy of needs, which of the following statements is true?(1 mark)
   
   




1. Physiological, love/belonging and leadership are all considered to be components of Maslow’s hierarchy of needs.


2. Humans will seek out the needs of love and belonging prior to seeking out self-esteem.


3. An individual will prioritize self-actualization over safety.


4. Physiological needs of safety and security are the first priority for humans.
   




4. Under McGregor’s view of leadership, which of the following statements pertains to Theory X?(1 mark)
   
   




1. Most employees are motivated by a strong sense of responsibility.


2. Work can be as natural as play.


3. The majority of people are accepting of change.


4. To ensure that employees do their jobs properly, a lot of oversight is required.
   




5. Which of the following isNOTa strategy for avoiding rationalizations in ethical decision-making?(1 mark)
   
   




1. The “put it in the newspaper” test


2. The Golden Rule


3. The “trust your gut” test


4. The “see if it would make a good general rule” test
   




6. Which of the following best describes what business ethics is mainly about?(1 mark)
   
   




1. Avoiding bad business behaviour


2. Staying within legal limits


3. Doing what is good and right


4. Having a corporate code of ethics
   




7. In the ethics tool kit approach, which of the following ismost appropriate for making sound ethical decisions in business?(1 mark)
   
   




1. You should pick one of the three decision guides and use it in every situation.


2. You should use the three decision guides thoughtfully, taking into account the relative strengths and weaknesses.


3. You should do what is in the best interests of your client or employer.


4. It does not matter how you decide, as long as you are sincere.
   




8. Hobbes’s state of nature offers a description of which of the following?(1 mark)
   
   




1. Business competition


2. The absence of ethics from society


3. A place where environmentalists would be happy


4. A place of tranquility and order

Part C — Short-Answer Questions (15 marks)

1. A local club has invited you, an ACAF holder, to participate in a public debate on the topic “ethics is good business.”

Required:

a. Briefly discuss three arguments in support of the notion that “ethics is good business.” Include material from Module 3 to support your answer.(3 marks)

b. Briefly discuss three arguments opposed to the notion that “ethics is good business.” Include material from Module 3 to support your answer.(3 marks)

c. On the basis of the points discussed in a) and b) of this question, which side has a stronger argument? Briefly explain your answer.(2 marks)

2. Choose a company operating in your region that you think would be worthy of being nominated for an Ethical Company of the Year contest organized by the local chamber of commerce. (You can use either personal experience or the Internet to identify an appropriate company.)

Required:

Write a short memo (500 words or less) explaining how your nominated company has benefited at least two stakeholder groups by going above and beyond the basic moral requirements that should be followed by an organization. (See the stakeholder chart in Figure 1.1 on page 13 of the textbook for a list of categories.) Use one of the decision guides discussed in the notes and the textbook to support your analysis about why the company you have selected should be chosen as the Ethical Company of the Year. Be sure to include the company’s corporate website address in your response.(7 marks)

Part D — Business Ethics Scenario (15 marks)

Cindy has just completed the ACAF program. As a result, she has was promoted from junior accountant in the accounting department of Dexter Ltd. (an office-furniture manufacturer) to working directly with Annie, the chief operating officer, as the controller of the company. Cindy is very happy with this new position because Annie has been a role model for her.

Now Cindy is joining three mid-level managers at a strategic planning meeting called by Annie. Annie explains that Dexter is having a difficult time competing for government furniture contracts. To win contracts in sealed bid competitions, Dexter has had to dramatically reduce profit margins to the point that there is very little cushion if products are defective and need repair or replacement in the warranty period. If Dexter puts in bids with a good profit margin, it will lose out in the competitive bidding situation. Annie says that she knows from industry sources that Dexter’s competitors are in pretty much the same situation.

Annie then says, “I would like the three divisional managers to brainstorm about getting into a better situation with our government contracts. In the past, they have been an important and reliable part of our business, accounting for as much as 40% of our total sales and up to 50% of our net profits. Now these contracts account for 20% of our sales and only 15% of the profits. Our overall profits have declined significantly compared to prior years. I have promised the CEO and the board that we can find a way of reversing our current situation. I know that I can count on you to come up with some great ideas. I would like each divisional manager to come up with one suggestion and give it to Cindy, who will write me a short report presenting each idea and commenting on each suggestion. And Cindy, please have this to me tomorrow morning before I meet the CEO.”

Two hours later, the three managers provide their suggestions to Cindy:

· Bill, manager of the sales department, suggests, “I have a good social relationship with the sales managers at our two biggest competitors. I am confident that I could work out a deal where we all raise prices when bidding on public contracts. We can work out who wins, so each company gets its fair share of the contracts. No point in racing around the course when we can take a stroll to the finish line.”

· Jagpal, manager of the supplies department, has a different idea: “There is a fair amount of information in the public domain about the operations of our competitors. If we carefully analyze this information, we could figure out ways of getting a competitive edge. For example, we might find efficiencies that our competitors use that would give us a better profit margin.”

· Elaine, manager of the IT department, says, “I think the reason we have a problem is that our main rival, Sinister Furniture Inc., has developed new design software that allows it to substantially cut costs. It would take us too long to design our own proprietary software. I doubt that Sinister would ever let us license their software, and if they did, it would be far too expensive. However, if Dexter hires one of Sinister’s top software designers, they could produce an improved version of the design software for us quickly, given all the knowledge that they would be bringing with them.”

Required:

Draft a memo of no more than 1,000 words that would be suitable for Cindy to send to Annie. The memo should do the following:

1. Discuss the benefits and drawbacks of each proposal in terms of practicality, likelihood of success, risks and benefits. (Point form or a table format can be used to format your response.)(6 marks)

2. Using the discussion on competitive ethics from Module 3 (the ethics of fair play) and on business ethics (decision guides), evaluate the proposals from an all-things-considered ethical perspective.(9 marks)