BADM 3003 Business Environment & Ethics May 4, 2021

School of Business

Business Environment & Ethics

BADM 3003
Spring 2021

Exam II

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General Instructions
 Time allowed: 90 min. 12:00 pm – 1:30 pm.
 Attempt all questions. Read all questions carefully.
 This is an open book and individual-effort exam.
 Kindly stay on Zoom for the duration of the exam. If you have a question send it in
the chat box (or WhatsApp) so as not to disturb your colleagues.
 While being brief, provide logical & coherent justifications to your answers.
 Please present your answers in a clear & organized fashion.
 Submit your answers either in PDF of MS Word format on Assignment slot entitled
“Exam II” on Blackboard no later than 1:30 pm.
 There are two (2) bonus points.
 Please make sure you include your name in the file as well as the file name.

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BADM 3003 Business Environment & Ethics May 4, 2021

Question 1 (7 marks)
1. Does Bona Fide Occupational Qualification allow an employer to specify the race of
an individual needed to be hired? Why? (1 mark)
2. What is meant by internalizing externalities? Provide an example. (1 mark)
3. Why is conflict of interest ethically wrong? Justify your answer from a Kantian
perspective. (1 mark)
4. Can it be assumed that the market has perfect competition? Justify your answer,
and briefly explain what impact that has on market dynamics (if any). (1 mark)
5. Why is gender discrimination ethically wrong? Justify your answer from a Utilitarian
perspective. (1 mark)
6. What are the Utilitarian & Kantian arguments against violation of privacy?
(2
marks)

Question 2 (10 marks)

Sherif, a lead supervisor in the manufacturing department, has just received word of an
altercation (disagreement/argument) between one of his junior supervisors, Laila, a
recent college graduate, and Youssef, a veteran machine operator.

Laila’s group had been working on an order for a major customer. Laila had set up a
work schedule and job assignments which Youssef, through experience, knew would
not get the order out on time. Youssef suggested a different sequence which Laila
dismissed without discussion. The group began the order using Laila’s setup, but
Youssef switched everyone over the minute she left the area. The order was finished,
on time, without further incident. Laila later discovered the “revolt,” however, and had
a loud confrontation with Youssef in front of the entire group. Laila was heard to have
yelled “you are to follow my orders without question! You are an operator and I am a
college graduate” at Youssef in front of the whole team. Youssef, on the other hand,
was heard mumbling “that’s what happens when an inexperienced woman is put in
charge of production” as he stormed away.

Sherif has reviewed the two work schedules and, indeed, Laila’s assignments would not
have gotten the order out on time. Since the customer uses a Just-in-Time inventory
system, such a slip-up would probably have cost Sherif’s company any future business
with the customer.

On the other hand, Sherif knows that a failure to support Laila will cause an immediate
loss of credibility throughout the entire department. She needs the freedom to make
her own mistakes if she is to develop and gain experience, but at what cost to the
customer? On the other hand, Youssef “saved the day”.

What would you do if you were Sherif? Clearly state the relevant stakeholders, the
ethical issue(s), alternative courses of action and their ethics, as well as your chosen
course of action.

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Question 3 (10 marks)

Nadia is an Assistant Marketing Communications Manager with ClearSkin Cosmetics, a
manufacturer of facial cream and other skin moisturizing products. She is relatively new
to the cosmetics industry, being a recent college graduate with limited “real world”
experience. As part of her orientation, she recently had the opportunity to spend one
week with the ClearSkin marketing research group, sitting in on several focus group
discussions with regular cosmetics users.

Today Adham stopped Nadia in the hallway and told her to coordinate the artwork on
both the new package label design and the storyboards for an upcoming advertising
campaign, to reflect an increase in the recommended application of a facial cream
product from one to three applications daily. While delighted with the opportunity to
finally be assigned something substantive where she can demonstrate what she is
capable of doing, she is troubled by the directive.

Nadia recalls that in each of the four focus group sessions the week before, the
majority of consumers interviewed revealed that just one application of this product
“did the job.” While changing the recommended usage would dearly contribute to
additional sales volume, what she knows about the product indicates that such an
increase would not significantly benefit consumers. On the contrary, as excessive
application of the facial cream might cause skin irritation. As far as Nadia knows,
Adham is the Group Product Marketing Manager, and he makes the decisions on
promoting recent hires for this product.

What would you do if you were Nadia? Clearly state the relevant stakeholders, the
ethical issue(s), alternative courses of action and their ethics, as well as your chosen
course of action.

Best Wishes and a Happy Holiday Season

Please Stay Safe

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