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ANSWERS TO CHAPTER 11 QUESTIONS
ANSWER 11.1
The verbal offer of Engineer A to Smith was binding, even
though no written offer was made. Rescinding such an offer
exemplified unethical conduct.
There might have been a unexpected breakdown of communication
among the principals or an innocent manpower planning mistake in
the consulting firm, without any cheating or intentional
misleading. The fact remains that the withdrawal was an
unacceptable professional practice. To demonstrate its good
faith, the firm should have responded by offering the following:
A. Issuing an apology to Smith for the planning and
communications mistake the firm has made.
ANSWER 11.2
You should not feel offended by the request because it is the
custom in Africa for the guests to pay.
ANSWER 11.3
Instead of feeling worried, Cindy Jones should regard it as
an honor to have been invited by the director of engineering to
attend the staff meeting at which her technical expertise may be
called upon.
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innovations. Jones’ strategy is to remain positive and helpful
without violating confidentiality.
ANSWER 11.4
The old saying is clearly relevant here: “What you stand for
depends on where you sit.”
Labor unions are there to protect the interests of workers.
These rules are negotiated between unions and company management
to define precisely how specific jobs are to be performed. The
When XYZ Company loses business, it will then lay off
workers, renegotiate union contracts, curtail work rules, and
diminish workers’ benefits. Soon, a new equilibrium is reached.
On the other hand, if the business climate improves and XYZ
Company makes money, the labor union will raise the bar, demand
more work rules, and seek to add other benefits.
ANSWER 11.5
This question is best answered by following the decision tree
diagram presented in Figure 11.7.
A. Is it legal according to U.S. and local laws?
In the U.S., free coffee is sometimes offered by corner
stores or other small shops to police patrolling the
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FIGURE 11.7. DECISION TREE FOR ETHICS PROBLEMS
offered freely and not demanded as a condition to conducting
business.
B. Does it violate core human value?
No, offering food and other concessions does not violate core
human value.
C. Is it consistent with culture-specific norms?
Yes, it is compatible with the local culture and business
practices. This is just like gift-giving practiced in Japan. To
ANSWER 11.6
This problem clearly demonstrates the multi-faceted nature of
business decisions. Business mangers must consider short-term
measurable factors of profitability, cost, public image and
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The key difficulty of resolving this type of problems lies in
the fact that proponents are already inclined to overemphasize
certain aspects they are in favor of while down-playing the
importance of others. No one is accustomed to coming up with a
balanced view which considers all values equally. Hence, what is
seriously missing is a balanced set of criteria to make business
decisions.
ANSWER 11.7
The law suit contrived by Paul is likely of no merit, but
Paul needs to be convinced of that by an impartial third party
whose legal opinion he trusts. To turn around Paul, Frank and
Elmer should do nothing for now. After all, Paul is their boss.