Business Law Reasons Employees Act

Questions: 1.Why did Isabel Arnett make the business decision that she made? Justify your answer. 2.This scenario illustrates one of the main reasons why ethical problems occur in business. What is the reason? 3.Would a person who adheres to the principle of rights consider it ethical for Arnett not to disclose potential safety concerns and refuse to perform additional research on Kafluk? Why or why not? Give reasons.4.If Kafluk prevented 50 Asian people who were infected with bird flu from dying, would that change the ethical consideration in this scenario? Why or why not? Give reasons. 5 Did Tamik or Arnett violate the Foreign Corrupt Practices Act in this scenario? Why or why not? Justify Answers: 1. unethical behavior and decision are result of three factors that is individual factors, issue specific factor, and environment factor. Individual factors mean those employees who have authority and they act unethically just to avoid punishment. These individuals manipulate other peoples for their personal gain, and do not consider the outcome of their actions. These peoples feel that ethical policies are followed as per circumstances (NBS, 2010). In the present case, Isabel Arnett try to bribe the families of those childrens who commit suicide because of effects of kafluk, and she denied for further investigation regarding this matter in the company. She took this decision to avoid the conflict and future punishments. 2. there are number of reasons behind unethical behavior by society, and some of these reasons are: Personal- the biggest reason behind unethical behavior in the business are the own personal ethics of individual. If person feels free to speak lie with family member, then he did not think once before telling lie to their business colleagues. Business culture- there is companies which focus on economic benefits, and they are willing to make financial profits and did not feel shame in making any unethical decision for earning an extra penny. Power- when individual receive power they had before, then it become difficult for them to handle that power and they start making unethical decision to maintain that power (Whiting, n.d.). 3. Ethical decisions are important for the company, and get number of benefits for the company who follow ethics. Decisions of the company are made by the individual and groups but whoever makes these decisions is influenced by the culture and norms of the company. In the present case, decisions took by Isabel Arnett is not good for the reputation of the company. Unethical behavior, decision or lack of corporate social responsibility may provide short benefit in present but its not good for the reputation of the company in the long run. Such ethical practice does not even attract stakeholders of the company, and this will result in loss of profit to the company (Business case studies, n.d.). 4. there are some decisions which have different effects on individuals. Some gain from that decision while some paid for that decision. It has both good and bad effects on individual. Utilitarianism is one of the most common approaches for making ethical decision, and according to this approach decision is ethical if it results in more good and less bad. This approach is considered while taking decision for large number of people. In the present case, if kafula save 50 people from dying then this decision is considered ethical decision because it done more good than bad (Brown University, n.d.). 5. Foreign Corrupt Practices Act 1977 was enacted with the purpose of making it unlawful if any person makes any payment as bribe to the government officials for the purpose of obtaining or retaining business (Foreign Corrupt Practices Act 1977, n.d.). In the present case, Isabel Arnett tries to make payment to the Japanese families and not the government officials. Therefore, they did violate the Foreign Corrupt Practices Act 1977. References: NBS, (2010). 3 Reasons Employees Act Unethically. Retrieved on 1st December 2016 from: https://nbs.net/knowledge/3-reasons-employees-act-unethically/. Whiting, B. Causes of Unethical Behavior in International Business. Retrieved on 1st December 2016 from: https://study.com/academy/lesson/causes-of-unethical-behavior-in-international-business.html. Business case studies. Ethical business practices. Retrieved on 1st December 2016 from: https://businesscasestudies.co.uk/cadbury-schweppes/ethical-business-practices/the-importance-of-ethics-in-business.html#axzz4Rfa9AOWi. Brown University. A Framework for Making Ethical Decisions. Retrieved on 1st December 2016 from: https://www.brown.edu/academics/science-and-technology-studies/framework-making-ethical-decisions. Foreign Corrupt Practices Act 1977-overview.