BUSINESS ETHICS

 

 

BUSINESS ETHICS

 

1 The manager of a restaurant has hired your consulting firm. He heard that ethical leadership must be top-down to be effective but he has no idea what policies to put in place. He wants you to give him three policies, one for each:

A. company to employee fairness

B. employee to employee fairness

C. company to customer fairness

What policies will you give?

2. A factor greatly affecting American Businesses is payroll tax law

In 1900, when a business paid an employee $10, the employee took home $10. The job was worth the same to both the employer and the employee.

2. A factor greatly affecting American businesses is payroll tax law

Today, a $10 an hour job, with all the “ER” taxes and required insurances, can easily cost an employer $13 an hour. All the while the employee’s own taxes will only leave her with about $8. So, the employer sees a $13 an hour job where the employee only sees an $8 an hour job.

2. A factor greatly affecting American businesses is payroll tax law

Your firm has been hired by the Jones & Smith Company to resolve an internal problem. Since it has over 50 employees and has a base wage of $30 per hour for its professionals, its actually hourly cost is $41.00 per hour. In the meantime, employees only see a take home pay of $21 per hour and this is creating a morale problem. They are looking for ideas on how to resolve this because they cannot afford to give raises.

What do you suggest?

3. The Auburn Antique Car Museum

The economy has been slow for the town of Cord. However, Henry Auburn, a well-to-do resident, highway contractor, antique car collector, and friend of the Governor has a solution… Tourism! He proposes that he will own and operate an antique car museum in Cord.

Knowing how things work, Auburn proposes a public-private partnership with Cord Economic Development Authority (EDA).

3. The Auburn Antique Car Museum

As a generous campaign contributor to the Governor, He and his partner, the EDA, approach the Governor with a request for a five million dollar job creation grant, claiming the museum will create a lot of union construction jobs and turn the economy of Cord around. The cash will go to the EDA which will build and own the $5,000,000 museum, leasing it to Auburn, Inc. for a dollar a month.

3. The Auburn Antique Car Museum

Cord’s claim to historic fame is that town resident, William Seward, had an automobile plant there between 1920 and 1922 where he built a car called: the Seward. The only model of that car still in existence is owned by a Seward descendent named Frank Duesenberg. Auburn thought Duesenberg’s 1921 Seward to be vital to the museum’s success but Duesenberg won’t sell it.

3. The Auburn Antique Car Museum

So, Auburn went to the EDA, and they, using the 2005 Kelo v. City of New London case where the Supreme Court ruled that the general benefits a community enjoys from economic growth qualified private redevelopment plans as a permissible “public use” under the Takings Clause of the Fifth Amendment, invoked eminent domain to acquire Duesenberg’s 1921 Seward. They then planned to lease it to Auburn for a dollar a year in the name of economic development.

3. The Auburn Antique Car Museum

Frank Duesenberg, has come to you for your advice as to what he should do. He cannot afford a protracted legal battle. He sees what Auburn is doing as unethical. He is wondering if there is a “business solution” available to him.

What are the ethical principles involved here?

What is your advice to Mr. Duesenberg?

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