Case 4.

1 Green Giant Runs For The Border

 INTRODUCTION

• Justice, like rights, is an important moral concept with a wide range of

applications.
• The concept of justice is relevant to business ethics primarily in the
distribution of benefits and burdens in situations like the move of
Green Giant to Mexico.
 ARISTOTLE’S ANALYSIS OF JUSTICE
• Particular Justice
• Aristotle divided particular justice into
1. Distribute justice, which deals with the distribution of benefits and
burdens
2. Compensatory justice, which is a matter of compensating persons
for wrongs done to them.
3. Retributive justice, which involves the punishment of wrongdoers.
Aristotle on Distributive Justice
• Aristotle’s principle of distributive justice can be stated in
the ff. manner:
A′ S SHARE OF P A′ S SHARE OF Q
=
B′ S SHARE OF P B′ S SHARE OF Q
Criticism of Aristotle’s Account
UTILITY AND JUSTICE
• ff. 3 distribution schemes:
I II III
A 10 A 14 A 16
B 10 B 8 B 9
C 10 C 8 C 7
30 30 32
• Diminishing Marginal Utility
• Justice and Desert
• Mill’s Argument
THE EGALITARIAN THEORY OF JOHN
RAWLS
Rawl’s Method
The Principles of Justice
1. Each person is to have an equal right to the most
extensive total system of basic liberties compatible with
a similar system of liberty for all.
2. Social and economic inequalities are to be arranged so
that they are both
a) to the greatest benefit of the least advantaged, and
b) Attached to offices and positions open to all under conditions
of fair equality of opportunity.
 I II III IV
A 10 A 14 A 16 A 14
B 10 B 8 B 9 B 11
C 10 C 8 C 7 C 11
30 30 32 36
The Difference Principle and Equal Opportunity
 In every distribution, there is a worst-off person- although this is not
necessarily the same person in each possible scheme.

IV V VI VII
A 14 A 14 A 12 A 10
B 11 B 12 B 10 B 12
C 11 C 10 C 14 C 14
36 36 36 36

 The Argument for the Difference Principle

UTILITY AND THE MARKET SYSTEM
 Adam’s Smith’s “Invisible Hand”
 Problems with the “Invisible Hand” Argument
 Public Goods and the Prisoner’s Dilemma
 The Prisoner’s Dilemma
 Implications of the Dilemma Prisoner B
Confess Not Confess
Confess A: 5 years A: 0 years
B: 5 years B: 20 years
Prisoner A
Not A. 20 years A. 1 year
Confess B. 0 years B. 1 year
THE LIBERTARIAN JUSTIFICATION OF THE MARKET
• Nozick’s Entitlement Theory
Two Principles
Objections to Nozick’s Theory

CONCLUSION

CASE 4.2 Executive Compensation

CASE 4.3 Merck and AIDS in South Africa
 Case. 5.1 Two Whistle- Blowers
SUMMARY
• Chuck Atchinson was a quality inspector at Brown and Root a nuclear power plant
being constructed in Texas. He became a whistleblower concerning safety
violations. He was suddenly dismissed after reporting problems to his employer,
Brown and Root that would have required redoing work. After he was dismissed, the
company downplays the credibility of his charges and was blacklisted after
testifying publicly against the industry. Then after obtaining a job at another power
station, he was fired a few days later after his new employers found out about his
whistle blowing. Atchinson "lost his job, his home, his credit rating, his sense of
personal safety, and his self-esteem as a breadwinner."
• Joseph Rose an in-house attorney for AMPI (Associated Milk Producers Incorporated)
was aware of the illegal political contributions to the Nixon reelection campaign, in
turn made him an accomplice. Because of not wanting to be part of the scheme
he uttered his statements to the board of directors. Thus being able to reveal the
problem with absolute information the company faced its consequences, such as
paying a fine of $35,000 and paying back taxes of $2.9 million, two executives were
convicted and one was imprisoned. After all the dilemmas he was able to put his life
back.
 SWOT ANALYSIS
Strengths
1. Thinking ethically despite the negative effects of the situation
2. They have a dense argument
3. Their credibility is protected
Threats
1. Safety of the whistle-blowers’ lives
2. Difficulty on being immediately employed
3. Disruption of their reputation
• Alternative 1: Pursue the act of thinking ethically
An alternative solution for the two whistle-blowers can be pursuing the act of
thinking ethically despite the negative consequences they will receive. With this kind
of attitude, they will become an inspiration or role models to the people who are
afraid to voice out their sentiments about illegal matters going on in their workplace.
And through this, they will be able to find a legit job that is in need of their ethical
thinking.
• Alternative 2: Provide a protection program
Another alternative can be providing a protection program to the whistle-
blowers and the community. In providing a protection program, their credibility as
individuals will not only be protected by the government but also their human rights
will be given justice as well. It is also a benefit for the whistle-blowers and their families
for they will be safe from all the threats given to them. Through this program, the
threat of having difficulty on being immediately employed and disruption of their
reputation will no longer be a problem to them.
https://prezi.com/dwwqzop_xnz8/two-whistle-blowers/
INTRODUCTION
 WHAT IS WHISTLE – BLOWING?
1. Blowing the whistle is something that can be done only by a member of an
organization.
2. There must be information
3. The information is generally evidence of some significant kind of misconduct on
the part of an organization or some of its members.
4. The information must be released outside normal channels of communication.
5. The release of information must be something that is done voluntarily, as opposed
to being legally required, although the distinction is not always clear.
6. Whistle-blowing must be undertaken as a moral protest that is, the motive must be
to correct some wrong and not to seek revenge or personal advancement.
Whistle-blowing is the voluntary release of
nonpublic information, as a moral protest, by
a member or former member of an
organization outside the normal channels of
communication to an appropriate audience
about illegal and/or immoral conduct in the
org or conduct in the org that is opposed in
some significant way to the public interest.
THE JUSTIFICATION OF WHISTLE-BLOWING
 The Loyal Agent Argument
 Are Whistle-Blowers Disloyal Agents?
 The Meaning of Loyalty
THE CONDITIONS FOR JUSTIFIED WHISTLE-BLOWING
i. Is the situation of sufficient moral importance to justify whistle-
blowing?
ii. Do you have all the facts and have you properly understood their
significance?
iii. Have all internal channels and steps short of whistle-blowing been
exhausted?
iv. What is the best way to blow the whistle?
v. What is my responsibility in view of my role in the organization?
vi. What are the chances for success?
IS THERE A RIGHT TO BLOW THE WHISTLE?
Existing Legal Protection
The Arguments against and for Whistle-Blower Protection
DEVELOPING A COMPANY WHISTLE-BLOWING POLICY
 Benefits and Dangers of a Policy
 Components of a Whistle-Blowing Policy
1. An effectively communicated statement of responsibility.
2. A clearly defined procedure for reporting.
3. Well-trained personnel to receive and investigate reports.
4. A commitment to take appropriate action.
5. A guarantee against retaliation.
CONCLUSION

CASE. 5.3 Better Late Than Never?

Case 6.1 The Aggressive Ad Agency
INTRODUCTION
 THE DEFINITION OF A TRADE
SECRET
• Sec. 757 Restatement of Torts
A trade secret may consist of any formula, pattern, device or
compilation of info which is used in one’s business, and which gives him
an opportunity to obtain an advantage over competitors who do not
know or use it.
 THE ARGUMENTS FOR TRADE
SECRET PROTECTION
1. Trade Secrets As Property
The Wexler Case
The Basis for Property Rights
Classifying the Ownership of Ideas
2. Fair Competition
Noncompetition Agreements
3. The Confidentiality Argument
Confidentiality Agreements
COMPETITOR INTELLIGENCE GATHERING
The Ethical And Legal Limits
Theft and Receipt of Unsolicited Information
Misrepresentation
Improper Influence
Covert Surveillance
 CONFLICT OF INTEREST
Some Relevant Distinctions
 Actual and Potential Conflict of Interest
 Personal and Impersonal Conflict of Interest
 Individual and Organizational Conflict
The Kinds of Conflict of Interest
 Biased Judgment
 Direct Competition
 Misuse of Position
 Violation of Confidentiality
MANAGING CONFLICT OF INTEREST
List of Major Means by Which Professional Groups and Business Orgs
Can Manage Conflicts of Interest.
1. Objectivity
2. Avoidance
3. Disclosure
4. Competition
5. Rules and Policies
6. Independent Judgment
7. Structural Changes
CONCLUSION

Cases:
Case 6.2 The Conflict of an Insurance Broker
Case 6.3 Procter & Gamble Goes Dumpster Diving