Quiz 5: Business Ethics

Business

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Ethics is to know the difference between right and wrong and work towards right direction. Business ethics is set of behavior and disciple that a business follows in its activities. as business is all about increasing profits, it involves in study of business policies. In this scenario Mr. T did not reveal the report of the test to the US food and drug official as he was not required to reveal it. even though he was legal. But the food which was tested positive for salmonella was delivered to retailers. Few people were ill after eating the food. In this situation T was legal but unethical as he sold goods that has tested positive for salmonella. Moral Minimum refers to the compliance with law. If the individual persons or business entities follow the law, then they are found to be act at the lowest ethical level. All the legal behavior need not to be right. In this case Mr. T comply with law as he was not required to report the result to US food and drug official. But he was unethical as the products that are tested positive were delivered to the consumers. Because of his unethical behavior people who consumed that food become ill.

Short-Run Profit Maximization One of the main reasons for the occurrence of the ethical problems in business is the desire to increase sales; thereby earning profits from it, which further yields high market value. In the given case, the CEO of the company came to know about the side effects that the vaccine causes. But he did not have taken reasonable steps to authorize further research on the drug. On knowing about the suicide incident in Japan caused by drug, instead of pulling off the vaccine from the market, rather he hushed up the case by providing the family with money as compensation. Thus creating a situation; where the company does not wants to put their revenue at stake.

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