Ethics vs.

Profit

A large American company participates in a highly competitive industry. To meet the

competition and achieve goals, the company has chosen the decentralized form of organization.
Each manager of a decentralized center is measured on the basis of profit contribution, market
penetration, and return on investment. Failure to meet the objectives established by corporate
management for these measures is not accepted and usually results in demotion or dismissal of a
center manager.

An anonymous survey of managers in the company revealed that they pressured to

compromise their personal ethical standard to achieve the corporate objective. For example,
certain plant locations felt the pressure to reduce quality control to a level that could not ensure
that all unsafe products would be rejected. Also, sales personnel were encouraged to use
questionable sales tactics to obtain orders, including offering gifts and other incentive to
purchasing agents.

The chief executive officer is disturbed the survey findings. In his opinion, the company
cannot condone such behaviour. He concludes that the company should do about this problem.

Questions :

1) What are the ethical problem mention in this particular case and what are the
probable causes of these problems?
The management obviously focusing about the profit of the company in
terms of how the company would be able to return on its investment, since the
company is entering in highly combative industry so therefore the management is
forcing the managers to do everything they could to meet and achieve what is
favourable with the company even it will crushed their own personal ethical
standard. The problem simply show how the manager and seller sometimes do
blind obedience for the sake of the company and simply not to be fired. The cause
of this problem is that the company is focused on making money rather than
focusing on making value.

2) It is all right to do something illegal or unethical to maintain the company’s image

and profitability?
You can make money without doing evil. The company should always remember their
mission and vision. The company should always think about their corporate responsibility
and it will always reflect on the image of the company. If the company or the business is
taking care of its clients and prospective clients by delivering good products or service and
developing excellent content, they will like the organization. Once this happens they will
happily take out the check books when you have something to offer them. The company
should focus on giving to receive much more in the end.

3) If you are the CEO of the company, what would you do?
It’s easy to get in trap of constantly focusing on how we can make money with
our business. If I am the CEO of the company, I will not only focus on the money but to
make sure how I am going to keep my clients and to find ways how I am going to keep
 them patronizing the service and product of the company. As A CEO, I should think about
also my employees and to respect their own personal ethical standards.

Friendship in Business

Asia Pacific Sugar and Sweets Manufacturing Company ordered molasses from
Philippine-Hawaiian International Sugarcane Incorporated on November 5, 2000. When the time
for payment came, Asia Pacific Sugar and Sweets Manufacturing Company was not ready to pay
due to tight financial crisis it was experiencing. Mr. Rolando Gutierrez, the manager of the said
company is a friend of Mr, Frederick Dy, the owner of Philippine-Hawaiian International
Sugarcane Incorporated. He talked with Mr.Dy and asked him if it was all right for the payment
to be delayed. For friendship’s sake, Mr.Dy agreed. It was only 20 days afterwards that the buyer
offered to pay. The seller accepted the overdue account and started delivering the molasses. Upon
receiving the second shipment, the production of manager of Asia Pacific Sugar and Sweets
Manufacturing Company reported to Mr. Gutierrez that the molasses did not meet the indicated
quality in the invoice. Mr. Gutierrez ordered the molasses to be returned. Enclosed in the invoice
was a memorandum citing the reason why it was returned. This action enraged Mr. Dy.
Immediately, he cancelled the contract and argued that the delayed of payment was a form of
“breach of contract”.

Questions :

1) Was the action of Mr.Dy to cancel the contract legally correct and morally justified?
On my opinion, it is not justified. He delivered a substandard product and this is
the reason why Mr Gutierrez returned the materials.

2) Is it appropriate to extend friendship in business transactions? Why or why not?

Being friendly in business is necessary but friendships in business aren’t. That’s
an important concept. We can have a valuable business relationship without friendship.
Unfortunately, many mistakenly believe that the first step to building a business
relationship is to develop a friendship. Friends are those people that we socialise with
outside of work and are characterised by significant and somewhat intimate interactions.
We might be friends with an accountant but wouldn’t hire her as our tax preparer. This
doesn’t mean we think our friend is incompetent. We might deduce that doing personal
returns would be outside our friend’s area of expertise. Or it could be another matter
entirely. We may have listened to our friend complain about her workload and don’t want
to add to her burden. With friendships, we can think of lots of reasons not to do business
with each other.

Expired Gravy
 Mang Toot’ fast-food chain has been known in the business not just only for its great
tasting food and excellent service but also for its cleanly prepared dishes. One day, Emong, a
service crew of Mang Toot’s Makati branch, was preparing the gravy. He was unaware that the
starch he used was already expired. He only noticed it after some time and the gravy had already
been served to some customers. Knowing that it might cause harm to the customers, he
immediately told Bartolome, the branch manage, about it. Bartolome told Emong not to tell
anyone about it, besides no one is complaining.

Questions :

1) What is the moral issue in the case?

The moral issue in this case is about veracity. It is said that morality tell about what is
good andwhat is bad in our human conduct thus in this case, telling truth must be applied in
any means.Trust relative to veracity will be also issue here. As the owner of the business, you
must bereliable and responsible to your customers. Also if the businessman always think of
theprofitability side of its business and disregard its customer sake, then they’re doing it
wrong. Nottelling the truth or should we say lying is truly wrong.

2) If you were Bartolome, what are you going to do?

Well, if it was already served and consumed, there isn't much you can do. You really can't
go out and announce to it patrons, it'll either A cause a panic, B ruin the restaraunts (good-if
it is) reputation or C cause perfectly fine people uneffected by the gravey to take legal
action... so, yes you just leave well enough alone in that situation.
And do NOT serve anymore of it.

Shared IT Secrets

When employee Eric Pantaleon quit his job in 1995. IT Systems, his company, paid little
attention. Pantaleon was one of the several customer-service representatives of the Laguna.
Philippine-based computer company, and the turnover of responsibilities in the department
wasn’t smooth. Following an uneventful exit interview with human resources officials, Pantaleon
left the company to start a job with IT rival, Sampo Computer, also based in Laguna.

It might have ended there, but when Pantaleon’s new employer began taking away
IT’s market share, its top management started to be alarmed. After some checking, IT learned
that Pantaleon was using knowledge of IT’s customer lists to make sales. Company officials also
suspected he might be relying on IT’s customer specifications and repair manuals.

Questions :

1) Is keeping “trade secrets” still an ethical issue in the age of globalization and
advanced communications technology?
Yes. It is still an ethical issue especially in the age of globalization and
advancedcommunications technology. Trade secret or intellectual property is confidential
 informationwhich allows a business to have a competitive edge over their competition. In
conclusion tothat statement, people may use this trade secret for their own personal
interest which maylead to unfair competition or business. Also the one who use this
intellectual property maybe affected in terms of trust and loyalty to its company or
business.

2) Is Pantaleon’s action unethical, e.g., using the customer list of his previous company
for his new company? Why or why not?
In my own opinion, it is unethical indeed. Trade secret is confidential and as I said
before, itallows business or other company to be in competitive advantage which may be
unfair

3) If you were Pantaleon, would you also do the same thing as he did? Why or why
not?
If I were Pantaleon, I will not do the same thing as he did because I do not wantto
be successful in life in an unethical or unjust way. Every human being have a
moralitywhich indicates that we all know what is right or wrong. I know that using other
peoplejust for yourself to have benefits is a very wrong attitude. We must be sensitive
enoughto know which, what or who to respect in order for us to be respected too.
Theconfidential information by other person you knew is one of the many things you
shouldrespect. Why? Simply because it is not yours and you are not the only one who
investtime and effort just to come up with that information. Even though I will surely
benefit atfirst, I know that this benefit will not last long and there are consequences that I
will facelater on. So, I’d rather start from the bottom, doing all my very best without
using otherpeople to be successful in life than to be on top immediately but have an
immoral andunethical behavior.

The Confused Accountant

Yvonne Pillar is a young accountant who came from a poor family. She was recently
hired by a big company call Chameleon Co.

When it was time to audit the accounting books of the company, Yvonne was instructed
by her boss to manipulate the numbers in order to reduce the taxes the company will have to pay
the government. The company official said that if she would not heed the command, she would
be terminated.

The employment condition that time was really tight and the chance of finding job is very
minimal.

Questions :

1) If you were Yvonne Pillar, will you obey your boss? Why or why not?
 No, I will definitely not obey my boss, It is illegal and against the lawto
manipulate the companies profit. If the company fired me I'll accept it rather thanused by
the company to do illegal. It may also found out by the BIR and can cause mylicensed as
a CPA to be revoked.

2) Are you morally obligated to follow an order that is illegal?

There is no morally obligation in doing illegal things and since it's illegal it must
not be tollerated

3) Explain the moral implications of the military slogan: “Obey first before you
complain.”
The word itself says that we need to obey every word and every command that
ourhigher officials, if we continue to follow command we gain their trust, and respectto
them, it also gain us good relationship with them. But this slogan is not alwaysapplicable
to ethics. For me if we follow this slogan we should think of the possitive and the
negative effect of this rule.

The Immoral Video Shop

Mr. Jun Quesadilla owns a video shop in Manila. His store has a wide variety of original
VCDs and DVDs which he get from a legal source and approved by the Videogram Regulatory
Board. He has all the legal papers and permits to operate this type of business. However, Mr. Jun
Quesadilla has a secret room in his store which he uses to avoid the authorities. The room
contains all the latest titles of pirated VCDs and DVDs, including X-rated tapes. He also uses
another selling strategy to make more money by telling customers that the VCDs and DVDs they
want to rent are “reserved” and he would only give this to them if they would rent them for a
higher price.

Questions :

1) It is right to sell a pirated VCDs, DVDs and X-rated tapes in the shadow of a
certified video shop? Briefly explain why.
No, because the producers and the directors make the film in the legal form and you have no
right to pirated it. We need to be fair buy it for the right price or watch it in the cinemas . X-tapes
makes people seduce so it can lead to a crime if they have no partner to deal with it, if we can make
a difference start it with ourselves, help each other.

2) In your own opinion, would you patronize pirated CDs and DVDs which are
cheaper than the original ones because is more economical? Why or why not?
Practically, yes, because you can save more money and you can watch easily same as the day
when it is still showing in the cinema but the quality is lower than the original CD’s. You even don’t
 see the characters in the movie but you can buy it cheaper than the original CD’s so, in my opinion if
you just want to watch it or get the story you can but just to be fair with others go with the original.

Mr. X

Mr. X is a graduating student. He is aware that he has an exam in math the following day.
Yet he plans to do the usual: Partying all night long with his friends. Mr. X is a born partygoer,
he never like the idea of studying. He is also a born cheat, surviving all the difficult examinations
by cheating.

“We don’t need to review! Look bro, I’m about to graduate without having to study
anything since first year!” he boasted to his friend when they told him they needed to prepare for
their math exam. True to his words, Mr. X didn’t even if his friends did. He instead prepared a
kodigo. “Cheating is bad you’re caught.” Mr. X thought, “That is if my teacher catch me.” The
following day his class took the exam and he did as expected. His kodigo was helping him well,
too well that he did not notice his teacher approaching him at the back. Mr. X was caught
cheating. “Sir, I’m not cheating, I’m just reading my notes.” The teary-eyed Mr. X would later
explain.

Questions :

1) Is Mr. X guilty of cheating? Why or why not?

Practically, yes, because you can save more money and you can watch easily same as the day
when it is still showing in the cinema but the quality is lower than the original CD’s. You even don’t
see the characters in the movie but you can buy it cheaper than the original CD’s so, in my opinion if
you just want to watch it or get the story you can but just to be fair with others go with the original.

2) What is the aggravating circumstances of Mr. X’s act that will increase his morality
culpability?
That’s the time that he know what he is doing but still he continue to do that thing. He didn’t
hesitate to do that because he did this things since he was on first year he had complacent to do that
thing because he know that his teacher might not caught him and he will pass the exam easily. He
believes that he can survive the exam even without reviewing his notes by the way of cheating.

Jack and Poy

It was Poy’s first time to be in Manila, and to be at five-star hotel, thanks to his
balikbayanfriend, Jack. For Poy, the experience was truly breathtaking. Things were truly unlike
he has experiencing in his hometown: The food, the room, and most especially the escalators and
elevators, “It’s like magic, the stairs move up and down without people moving them!” he once
exclaimed. When the day came back for Jack and Poy to return to their beloved town, they
waited at the hotel lobby while their room was being checked for missing items.
 After a few moments, the hotel manager approached them saying, “Sir, I think we’ve got
a problem,” he tactfully informed Jack. “Two pillowcases and one blanket are missing, I think,
you two need to pay for them.” Jack indignantly told the hotel manager to check the room again.
“We are not thieves!” Jack complained. “But we have checked your room several times already,”
the hotel manager protested. “If you cannot pay for the missing items, I’m afraid we may need to
check your baggage.” “Fine, help yourself,” Jack retorted. The hotel manager was about to open
their baggage, when Poy stopped him, "Wait! Okay! I’ve got the pillowcases and the blanket,”
Poy admitted. “Sir, your honor, I am very sorry, I thought I could bring them home with me….
You know, as some sort of souvenir?” Poy explained in tears.

[Cases were taken from the book Moral Philosopy (2004) by A. Articulo, Quezon City: Great
Book Publisihing, pp. 176-178]

Questions :

1) Is Poy guilty of stealing? Why or why not? Discuss your answer.

He is not guilty. If the crew asked a question and if he is guilty he would admit it on the
first or second question but he insisted that he didn’t know and when the crew asked to
look on their belongings that is the only time he admitted that he taken the items.

2) Is coercion a sufficient reason to excuse a person from a moral liability? Discuss

your answer.
No, because on the first place they agreed to do a certain task. It will always be on your
decision making.

Golden Taurus Garment Company

Golden Taurus is garment company managed by a Taiwanese national. The company is

experiencing near bankruptcy because of the current strike of its employees’ union. The
management attributes the current difficulty in the company’s financial condition to labor unrest.
Eva Wu, the owner, has experienced being bullied and received several death threats.

Some of the issues raised by the employees against the management are the below
minimum wage salaries, series of unpaid SSS premiums, and delayed payment of salaries. Also,
employees do not get their 13th month pay even if the law entitles every employee regardless of
employment status. Also, employees are asked to sign a five-months contract, which excludes
them from getting the year-end bonus. Per company policy, only those employed with six-
months employment contract can get the year-end bonus.

Long working hours and less break time add to the complaints of the employees. Working
hours starts at seven in the morning and end at six in the evening. Break time in the morning is
from 10:00 to 10:15 and none in the afternoon. Employees can eat their lunch between 12:45 to
1:00 which gives them only a fifteen-minutes lunch break.

Employees are also concerned with the violation of contract. Sewers are given the quota
which is against the agreed per piece basis. They are also troubled with the poor working
conditions and the inadequate supply of water for their personal hygiene in the restroom.

Without the knowledge of employees, Golden Taurus filed a bankruptcy status, and later
operated under a new company name.

Questions :

1) Does the company’s current financial condition justify the compensation given to
the employees?
No, because how can they operate a new establishment if they lack on their financial
status. They are taking advantage of the employees.

2) It is ethical to deny the employees the information about the company’s financial
condition and decisions?
Maybe, there are things that are needed to be confidential. It can be used against you if
they have a grudge on you.

3) It is moral to let the employees sign a five-month contract instead of a six-month

contract?
Of course is on their fault they agreed on the contract that was made and they signed it
too.

XYZ Cement Company

In 1982, XYZ Cement Company began its plant operation in Pampanga. Local residents
were very happy because of the economic benefits they got from the plant especially the 400
local residents employed. After a few years of operation, the plant started to emit large volumes
of pollution. Local residents noticed the constant vibration and loud noise coming from the plant.

Local residents filed a suit against the company asking the court to issue an injunction to
close the plant. The residents claimed that the loud noise and the vibration posed danger to their
health and damaged their property.

The company was using the best available technology in their operation. The court
refused to issue the injunction arguing that closing the plant would mean more harm than good to
both parties. The court instead ruled that the XYZ should pay the residents a one-time fee to
compensate them for the damage done. The amount was computed based on the fair market price
the residents would receive if they were inclined and able to rent their property.
Questions :

1) Was the decision of the court fair? Why or why not?

No, the court should have checked the company’s performance on the said location.

2) If you were the owner of the cement plant, what will you do to solve the problem?
Talk to them what would be their decision and agreed on some terms that would benefit
both parties.

3) Discuss the cost and benefit of the case from the perspective of the principle of
utilitarianism.

The Case of the Malicious Manager

Strike, Inc. is a well-known company in the field of Information Technology (IT). It has
been the main and primary producer of educational software and business operational progress
like database filing, computerized payroll system and hardware designed swipe machine and bar
code system. Jeffrey Jacobs, the manager, has been working for the company for almost 25
years. His expertise in system application and development made him the best and the most
competent in the managerial position. He is aggressive and hardworking but at times
unpredictable and bossy. His personal attachments and close professional to female employees of
the company have been noticed by many. One day, Bernadette Ryan, the head of the developers,
went to Jeffrey’s office for product consultation. The meeting went on and Jeffrey’s comment
about the new project is its marketability and user-friendly functionality. Bernadette, on the other
hand, continued to explain the advantages of the system when Jeffrey stood up and approached
the door. She just continued discussing the features of the new system being developed. Without
her knowing it Jeffrey suddenly appeared at her back, sort of listening to her discussions, Jeffrey
started to make sleek moves; he intentionally put his hands, touched and sort of massaged
Bernadette’s shoulder. Bernadette was surprised with the actions of her boss. She stood up and
said “I better go.” As she walking out of the room, Jeffrey got hold of her arms and said “I know
you like what I’m doing. Come on, try me!” Bernadette felt that she was harassed and exclaimed,
“Stop or I’ll scream! This is sexual harassment!” Jeffrey felt more aggressive and told Bernadette
that being the manager he has the right to be the boss and handle his subordinates on his own
way. Jeffrey further imposed that if she would not submit herself to his personal aggression, he
would tell other employees about the incident. Moreover, he would definitely fire her and tell
everyone that it was Bernadette who did the first move of flirting. Bernadette was shocked. She
ran out of the door to get out of Jeffrey’s malicious and questionable disposition.

Questions :
 1) Is the action of Jeffrey Jacob considered sexual harassment? If so, what type of
sexual harassment?
Yes, it is a quid pro quo sexual harassment. He uses his superiority for being a manager
against Bernadette and taking advantage of her.

2) What appropriate actions should do in order to prove that the incident happened?
She can report to the HR dept. that she was harassed by Jeffrey on that day so that their
will be a certain action to be done.

3) State the implications of sexual harassment to Bernadette and to organization.

The Bank Depositor

A depositor entered into a trust agreement with a commercial bank under clear and
certain terms that it would carry an interest at a net rate of 8.6%. The branch manager of the bank
assured him that his deposit amounting to ₱1 million is very safe, income-generating, and the
income derived is tax free. However, he was not furnished a single piece of document except the
official receipt for ₱1 million. The trust agreement which the brand manager made him sign in
blank was given to him after he made stern demand for copies of documents relative to his
deposit. He was not informed in what manner his money is being used by the bank, making him
believe that it is just an ordinary deposit. Even the Trust Agreement who the beneficiary of the
alleged trust will be. But, while the copies of the documents given to him do not bear his
conformity, those filed with the BangkoSentralngPilipinas (SBP) have his alleged signature.

The depositor is demanding the return of ₱1 million from the commercial bank where he
placed the amount under the trust agreement. The depositor, through his lawyer, filed letters of
complaint with the Department of Thrift Bank and Non-Bank Financial Institutions of BSP. No
action has been taken despite the lapse of more than one month except for the informal talk with
the department’s lawyer who told the complainant that the bank has answered the initial
complaint.

To date, however, the complainant has not been furnished copy of such reply. This,
allegedly, gives the depositor the notion that the erring bank enjoys the protection of some BSP
officials.

Questions :

1) What moral principle is being violated in this case? Is the action, implementation or
performance of the branch manager and the officials from BSP in accordance with
their duties? Did they carry out their functions uprightly and morally?
No, they should check and confirm if there is any alleged or filed complaint against the
suspect. They chose not to help the depositor.
 2) What is the moral implication of this case to the banking and finance industries?

The Big Mak Burger

McDonald’s Corporation (McDonald’s) sued L C Big Mak Burger, Inc., for trademark
infringement and unfair competition by “Big Mak” due to colourable imitation on the signages,
wrappers, and containers of its registered “Big Mac” mark for the same food products.

Big Mak appealed the case. But the final decision of the court favored McDonald’s.

There exist some distinctions between the names “B[ig] M[ac]” and “B[ig] M[ak] as
appearing in the respective signages, wrappers and containers of the food products of the parties.
The infringement goes beyond the physical features of the questioned name and the original
name. There are still other factor to be considered. Applying the dominancy test, the Court finds
the respondent’s use of the “Big Mak” mark results in the livelihood of confusion, First, “Big
Mak” sounds exactly same as “Big Mac.” Second, the first word “Big Mak” is exactly as the first
word in “Big Mac.” Third, the first two letters in “Mak” are same as the two letters in “Mac.”
Fourth, the last letter in “Mak” while a “k” sounds the same as “c” when the word “Mac” is
pronounced. Fifth, in Filipino, the letter “k” replaces “c” in spelling, thus “Caloocan” spelled in
“Kalookan.”

Furthermore, the respondents’ inability to explain sufficiently how and why they came to
choose “Big Mak” for their hamburger sandwiches indicates their intent to imitate petitioners’
“Big Mac” mark. Contrary to the Court of Appeals’ finding, respondents’ claim that their “Big
Mak” mark was inspired by the first names of respondents’ Dy’s mother (Maxima) and father
(Kimsoy) is not credible. For one, he could have his father’s name ahead of his mother’s, as is
usually done in this patriarchal society, and derived letters from said names an that order. Or, he
could have taken an equal number of letter (e.g., two) from each name, as is the more usual thing
done, the more plausible behind respondents’ choice of the word “Mak.”

Under Section 23, in relation to Section 29 of RA 166, a plaintiff who successfully

maintains trademark infringement and unfair competitions claims is entitled to injunctive and
monetary relief. Here, the RTC’s was upheld in issuing the injunction as of August 1990 (made
permanent in its Decision of September 1994) and in ordering the payment of ₱400,000 actual
damages in favor of petitioners, exemplary damages of ₱100,00 plus attorney’s fees and
litigation expenses. The injunctive writ is indispensable to prevent further acts of infringement
by the respondent’s corporation. Also, the amount of actual damage is reasonable percentage
(11.9%) of respondent corporation’s gross sales for three (1988-1989 to 1991) of the six years
(1984 -1990) respondents have used the “Big Mak” mark.

Questions :
 1) Why is unfair competition unethical and not just illegal?
In business if there are existing products you can always copy it but have different use or
function because it was upgraded or innovated.

2) Research and comment on R.A. 8293 (IPC) on Registration of Trademarks and

Service Marks. Cite some reasons why a mark cannot be registered.
The rights in a mark shall be acquired through registration made validly
i n accordance with the provisions of this law. (SECTION 122)The applicant or the registrant shall
file a declaration of actual use of the mark withevidence to that effect, as prescribed by the
Regulations within three (3) years fromthe filing date of the application. Otherwise, the
application shall be refused or themark shall be removed from the Register by the Director.
(Section 124.2)

The Asarco Company

The Asarco Company was foundry for copper in Tacoma, Washington. People used to
talk of the “Tacoma aroma” when referring to the foul smell emitted by Asarco’s giant chimneys.
The company’s activities however, did not just produce bad smell. Worse, they also released a
notably high amount of arsenic.

In the ‘70s the company had invested more than $40 million in an attempt to reduce the
arsenic emission. But in 1983, the agency for environmental protection told the company that the
law demanded that they reduce the emission of arsenic by at the very least, 25%. Arsenic is
carcinogenic. The agency estimated that the arsenic emissions of the company led to four lung
cancer cases a year. The new restriction was aimed at reducing this figure to the probability of
just one case yearly.

Questions :

1) What is the ethical issue in the case?

The ethical issue is that they must think for the benefit of all, if you will do something it
must not hurt someone. Because if you harm someone even if it is physically by you,
should take action to take care of it.

2) If you are the president of Asarco Company, what would you do and why?
I would buy a large land so that the Tacoma Aroma can’t reach the people nearby. And
also they can’t be harm from the toxic air.

3) Discuss the ethical implications of the case using the utilitarian principle
The company should be shut down so that the people and the resources will be still
available.
Silverstar Chemical Company

Silverstar Chemical Company’s new president, Mr. David Santos, has learned for the past
four years the company has been dumping its industrial waste into the local river and falsifying
reports to authorities about the levels of suspected cancer-causing materials in that waste. The
plant manager says that there is no proof that the waste can cause cancer and there are only few
fishing villages within a hundred kilometres downriver. If the company has to treat the substance
to neutralize its potentially injurious effects and then transport it to the legal dumpsite, the
company’s operating costs would rise to a level that might make the firm uncompetitive. If the
company loses its competitive advantage, 10,000 local employees could become unemployed
and the town’s economy might collapse.

Questions :

1) What is the ethical dilemma that Mr. Santos, the company president, is facing?
The ethical dilemma or moral dilemma that Mr. David Santos, the president of
SilverstarChemical Company, is facing is the two distinct choices. One of the
choices is to treat thesubstance to neutralize its potentially injurious effects and then
transport it to a legal dumpsitebearing in mind the company’s operating costs might go
to a level that might make the firmuncompetitive. The other choice is to still falsify that
the there is no proof that the waste havecancer-causing materials and there are only few
fishing villages within a hundred kilometersdownriver bearing in mind the health of other
people.

2) Why is environmental pollution a moral issue?

Because it can harm the natural resources also any living thing that is near.
3) If you are the president, what would you do? And why?
I will segregate my waste so that it can be save both parties

4) Cite three other ethical issues that we can find in this case.

Prudence Comes with Fortitude

The pain reliever medicine, Analgesia-T manufactured by CPC Company, is a well-

known analgesic known to provide relief from pain and serves as a palliative to people
worldwide. However, in the early 1980s, several persons died after taking capsules of the well-
known medicine. It was found out, that the medicine contained cyanide, a highly poisonous,
white crystalline element accidentally mixed with the medicines because of factory defect. The
sister company of CPC, the Jackson Company took the initiative and without delay, made steps
to resolve the problem. It readily ordered the retrieval of the product from the market. Be that as
it may, the company lost about $100 million dollars by recalling more than 31 million bottles of
Analgesia-T. The Jackson Company made all efforts to launch an information campaign in order
to allay the fears of the consumers. The company ran a continuous media campaign and a toll-
free customer care hotline. Millions of capsules were tested by reliable agencies, and the
company offered to reimburse the amount of the medicines thrown away by the customers, Even
the company president made an appearance on television in an effort to assure customers that the
company has taken several steps that the medicines reach them safe and free of poison. The
company likewise pioneered in introducing the tamper-proof medicine seal that has become the
standard in the pharmaceutical industry, most of which now has “tamper resistant for your
protection” printed on its blister packs. Of all these actions, the means of recalling the medicines
from the market has been the most effective action taken by the Jackson Company. It may have
lost million of dollars, but the attention gave the consumer and its employees across the world a
clear indication of how the company upholds its doctrine, “that they primarily responsible for
their customers.” It is this credo that made them believe that they have taken the best actions
necessary. And truly, after only two months since the crisis, the company was able to recover 80
percent sales of the medicine.

Questions :

1) Why do you think it is important for the Jackson Company to hold on to its credo?
So that the ones who see them will believe in everything they say.

2) The actions taken by the Jackson Company support many areas of corporate social
responsibility. What are these?
The sister company of CPC, the Jackson Company took the initiative and without delay,
made steps to resolve the problem. It readily ordered the retrieval of the product from the
market.

3) What other suggestions can you give the Jackson Company in order to assist its
sister company CPC?

Where Is After-Sales Service?

Spidermart is a shop of Celia’s neighbourhood. It is a well-known for being very

spacious, well supplied and for its enticing advertisement. Celia bought a shower nozzle at the
store and was assured by the salesman that despite the product’s being quite expensive. Celia got
more value for her money because the product is guaranteed to last a lifetime and was imported
from one of the largest sanitary product manufacturers in the world. However, when Celia’s
plumber was installing the nozzles, he discovered that the nozzle was defective. The plumber
showed her the newly installed nozzles and she saw the water kept gushing out from the wrong
places even if they were properly installed. She was convinced that it is a factory defect so she
went back to Spidermart and told the salesman about it. The salesman would not believe her
story but Celia insisted until the store manager was summoned. The manager sided with the
salesman right away and kept convincing Celia that it must be because of wrong installation. The
commotion then resulted to Celia that claiming that the shop was only violating its catchphrase
and that she has been deceived. The manager still maintained not to replace the defective
nozzles. Celia told her friends about it and one of them suggested that she raise this issue to the
Consumers’ Union. The Consumers’ Union met with the director of the Spidermart and warned
that they will be publicize if the shop will not do anything about the matter. The shop director,
out of fear of having the issue blown out of proportion by the Consumers’ Union, agreed to have
the nozzles replaced. Only then was the issue resolved.

Questions :

1) In what instances in the case were violations of corporate social responsibility event?
When they didn’t replace the broken nozzles that was bought by the consumer.

2) Was it right for the store manager to immediately side with the salesman? Why or
why not?
Of course not, he should have checked the item first before siding with the other side. He
should have known better.

3) Celia’s case may only be one of the many unpleasant episodes that happened and
remained uninvestigated at Spidermart. Replacing the defective nozzles does not
totally resolve the core of the matter as the Consumers’ Union has given the
Spidermart a warning and many costumers may suddenly come out in the open
upon hearing the news about the case of Celia. As a shop director, what are the next
step that you must do?
Give the staff a training and guide them to be more accommodating and always check the
product before thinking of conclusions.

Fair Wage?
CHEHOMA Corporation has been operating for almost 10 years now. After five years of
operation, it started borrowing money from the bank yearly to keep its business going. Due to
the global crisis and the weakening of the Philippine economy, the company failed to pay its
debts to the bank. Because of this situation, the bank issued the company a letter of notice
telling the company that if it fails to pay its debts, or at least the interest, within a year, the
bank will have no choice but to take over the company. Consequently, the company was
forced to act on it. It decided to cut down its expenses by having a mass lay-off of its
employees opposed the idea so they initiated a dialogue with the management. They said that
they prefer a salary below the minimum wage rather than to lose their jobs especially in those
times. However, the management told them that this is against the law and that the company
might face a criminal offense. Still the employees continued to plead until the company gave
in. as a consequence, they told the employees that they would have to sign a document
stating that they actually received the right wage. It is to appear that the company is paying
the right amount of wage to the employee.
Questions:

1) Clearly the company will violate the law if it allowed its employees to receive the
wage below the minimum than the law requires. Is this decision morally correct?
Why or why not?
No, he should cut them off than letting them work below the minimum wage. It can be
used against him in the future to blackmail the company and use it as a leverage.

2) The employees insisted on what was legally wrong. Is this action morally justified?
Yes, because both parties agreed on a certain contract.

Religion in the Workplace

A woman was working as a head nurse at a clinic that employed about 20 people. The
owner and manager are members of a religious cult. During business hours, everything
seemed normal, but during the two-hour lunch break, all the employees have to go to the
rooftop and attend in-house teachings. These courses encompass everything from
communication skills to office efficiency. They were all designed by a man who founded a
religious cult of which the owner was a member. Granted that they were business seminars,
staff members and employees including the head nurse felt those teachings were heavenly
colored with religious influences. They had to understand every word as an important key in
learning lessons. However, most of the words could not be understood because they cannot
be found in dictionaries. Whenever she would ask her boss about a word, they would usually
end up discussing the cult leader’s works and eventually she would have to read paragraphs
out of the religious teachings to fully understand everything. She felt as though she was being
brainwashed but could not complain because she loved her work.

Questions:

1) What is the main ethical issue in this case?

The main ethical issue is that you are forced to do some activity that is against you.

2) Is it morally right to business owners to impose their religious orientations on their

employees? Why or why not? Explain your answer.
It is wrong because anyone have their own belief and they have the right to do whatever
they want. In this kind of situation they are brainwashing their employees to go with them
to the cult.

3) Is religious discrimination unethical? Explain your answer.

Yes, because everyone has their own perspective they should be agreed on it and respect
their every decision that had been made.