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There could be some reasons that will discourage the manufacturer to inoculate its employees
first:
• The company might be perceived by the rest of society as selfish or unfair; and,
Business & Professional Ethics for Directors, Executives & Accountants, 8e
5. Insurance and Genetically Inherited Diseases (Chapter 3, page 179)
What this case has to offer
This case is an example of an ethical dilemma resulting from allowing high-risk individuals, with genetic
predisposition towards certain diseases, to purchase insurance at the same cost as other individuals
Teaching suggestions
An interesting way to start this case is by discussing the concepts of adverse selection and pre-existing
condition before discussing the ethical dilemma associated with genetic testing. Ideally, a health insurer
would like each person to pay insurance premiums proportionally to the expected cost of treating all
Discussion of ethical issues
1. Do you consider it to be unethical for insurance companies to charge high-risk people a higher
premium than low-risk people?
Health insurance is insurance against the risk of incurring medical expenses among individuals.
By estimating the overall risk of health care expenses among a targeted group, an insurer can
develop a finance structure, such as a monthly premiums or payroll tax, to ensure that money is
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2. Are insurance companies acting responsibly when they require customers to disclose medical
information and/or submit to a medical examination?
The answer to this question is related to the answer of the previous question. Asking customers
3. Argue in favor or opposed to Senator Cowan’s proposed legislation.
In favour
This legislation should be passed for the following reasons:
• Under the Distributive Justice principle and Rawl’s approach to justice, discrimination
against otherwise-healthy individuals on the basis of a genotypic variation is unfair.
People that were born to families with predisposition to genetic diseases did not have
any control over their condition.
• If insurers use the information from genetic tests against people, this could discourage
people from taking a test which may be in their interest. It may stop them from having
early diagnosis for treatable illnesses.
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Opposed
This legislation should NOT be passed for the following reasons:
• From the utilitarian perspective, the ethically correct action is the one that will produce
the greatest net social benefit, often measured in terms of the amount of pleasure or
Business & Professional Ethics for Directors, Executives & Accountants, 8e
6. Terrorist Payments (Chapter 3, pages 179-180)
What this case has to offer
This case allows the students to apply the ethical theories of utilitarianism, deontology and virtue ethics
to a real situation, although the names have been altered so not as to bias any discussion in class. On
Teaching suggestions
I find that this case works well when each ethical theory is used separately to analyze the situation. I
begin by asking the students to summarize the key utilitarian notions and then apply those concepts and
Discussion of the Ethical Issues
1. Should Alex join the board of directors of Consolidated Mines International Inc.?
This is a good opportunity to remind students of a director’s functional responsibilities (see
Table 5.1) as well as the behavioral expectations of directors (see Table 5.2). If Alex thinks that
2. If Alex joins the board, should he vote in favour of continuing to make the payments to the
United People’s Liberation Front?
Economics
The only argument in favor of making the terrorist payments, other than saving company
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Utilitarianism
Utilitarianism contends that the best option is the one that promotes the most happiness for
humanity. In this case, not paying the terrorist would promote the most happiness. The
National Peoples Liberation Front is involved in murder, rape, torture and the cultivation and
Deontology
Rather than focusing on consequences, deontology examines the motivation of the decision
maker. Two useful rule-questions are: are you prepared to have your decision universalized,
and are you treating people as ends or as means? If everyone was prepared to make payments
to terrorists and other extortionists, it would contribute to the collapse of society. So, from a
deontology perspective, making the payments is unacceptable. Also, it would be unacceptable
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Virtue Ethics
Similar to deontology, virtue ethics examines the motivation of the decision maker, rather than
the consequences of the decision. Firms are to demonstrate courage, candor, and integrity.
3. What other options are available to Alec?
This question allows the students to use their moral imaginations and come up with creative
solutions to this dilemma. For example, from a utilitarian perspective, rather than make the
payments to the terrorist, CMI could invest in a defensive force to protect its employees.
Additional Information
In 1871, Henry Meiggs formed the United Fruit Company. In 1970 it changed its name to United Brands
Company and in 1985 to Chiquita Brands International. Often, there have been allegations of
questionable business activities. Since its early years of operations, the United Fruit Company was
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From 1997 to 2004, Chiquita admitted that it paid approximately $1.7 million to the United Self-Defense
Forces of Columbia (AUC in Spanish), a right-wing paramilitary group. Through its subsidiary, Banadex,
Chiquita made more than 100 monthly payments, often in cash, to the AUC, which were recorded as
being for security services. As control of the banana-growing region shifted, Chiquita then made
Useful Articles, Links, and Videos
“Chiquita Brands International” (November 30, 2010). New York Times,
McQuillen, William (April 15, 2010). “Chiquita Faces New Claims Over Colombia Terrorism.” Bloomberg,
Leonning, Carol (August 2, 2007) “In Terrorism–Law Case, Chiquita Points to U.S.” Washington Post,
7. The Case of Cesar Correia (Chapter 3, page 181)
What this case has to offer
This is a true story of a young man who committed a crime, went to jail, served his time, began a career
in computers and started a business with a colleague. He is now being penalized a second time. Is that
fair? This case lends itself easily to analyses based on the theory of rights, justice as fairness,
utilitarianism and virtue ethics.
Teaching suggestions
Rather than have the students read the case, I give them the basic facts contained in the first paragraph,
the setting up of Infolink Technologies and the lawsuit. I have them vote on whether or not George has
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Discussion of Ethical Issues
1. Ignoring any legal issues, was Cesar ethically obligated to inform his partner, George, of his criminal
past?
The theory of rights contends that individuals have certain entitlements, regardless of their
economic condition, gender, age, and geography. Included among these rights are the right to
privacy and the right to information. The right to privacy means that personal information need
Do Not Disclose
• Cesar has a right to privacy. He was pardoned. Therefore, for all intents and purposes the
Make the Disclosure
• To be effective in business, partners need to be able to trust one another. George has right
2. Did George have a right to know about Cesar’s criminal past?
Rawls argues that each person has a right to liberty that is commensurate with the liberty of
everyone else. Also, inequalities should be to everyone’s advantage. In this case, under the
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Virtue ethics takes a more holistic approach, looking at all the characteristics and traits of the
individual. The murder of his father was a horrendous crime, and his reticence about disclosing
this to his partner demonstrates a lack of candor and respect for George. On the positive side,