MGMT 290-002

ReviewBusiness Ethics
1. Ethics are moral principles and values applied to social behavior, in this case, ethical misconduct would be
behavior or conduct which violates the ethical or professional standards. Ethics are all about rightness, fairness
and wrongness of peoples actions and the way those actions affect other people in our society. In this case, a
person who adheres to the principle of rights does not consider it ethical for Stilton not to disclose the potential
risk of cancellation to investors.

2. Kants categorical imperative is an ethical guideline which an action is evaluated in terms of what would happen
if everybody else in the same situation, or category acted the same way. In this case, the actions of RightLiving
are unethical because under Kants categorical imperative, all human beings should follow an absolute moral
standard regardless of the circumstances or benefits. Stilton is trying to maximize the companys profit by selling
insurance policies that will affect other people without disclosing the potential risks, this is unethical.

3. Theory of utilitarianism states that an approach to ethical reasoning in which an action is evaluated in terms of its
consequences for those whom it will affect. A good action is one that results in the greatest good for the greatest
number of people. Under the theory of utilitarianism, Stiltons actions are ethical because this theory supports the
fact that a decision is considered right if majority of the people benefit from the decision. The fact that Stilton
believes most of the policies are legitimate (85%) while only a few are not so good, but at the end of the day,
everyone will make profits so under theory of utilitarianism, this is ethical.

4. Business Process Pragmatism

Step 1: Inquiry Understand the problems and identify the parties involved and collecting the relevant
facts
Step 2: Discussion lists possible actions and evaluate using ethical principles
Step 3: Decision Decide weather the actions are ethical or acceptable
Step 4: Justification: Articulates the reasons for the proposed action and documentation should be shared
with stakeholders explaining why the proposal is an ethical solution
Step 5: Evaluation Analyze the proposals effectiveness.
According to the business process pragmatism Stilton should disclose the risk of fraudulent policies to potential investors.
Stilton already identify the problems, discuss and made a decision not to disclose the risks, this is unethical according to
the business process pragmatism. What Stilton should do is come up with an ethical proposal to solve the problem instead
of maximizing companys profits.