Reference no: EM131112821

Objective:-

To learn ethics through short case studies.

Situation 1:

James and Jennifer Stolpa and their five-month old son, Clayton, were stranded outdoors in a snowstorm for 8 days.  They were rescued after James left Jennifer and Clayton in a cave and hiked 30 miles in subfreezing temperatures to get help.

During the time they were stranded, the Stolpas ate Doritos-brand corn chips that they had with them in their car.  When they were rescued and taken to the Washoe Medical Center for treatment of severe frostbite, they were visited by boxing champ, George Foreman.  Mr. Foreman is a spokesperson for Doritos.  His visit to the Stolpas earned national press and television coverage that emphasized the Doritos consumption.

If you were an executive with Doritos, would you have sent Mr. Foreman to the hospital?

Situation 2:

Henry Rauzi, the controller for Sunbeam, issued an offer to Linda Croce for an entry-level accounting position at Sunbeam at a salary of $34,000 per year.  Ms. Croce accepted the offer and gave notice to her employer.  When then-CEO of Sunbeam, Paul Kazarian, was informed of the offer, he demanded that Mr. Rauzi rescind it because Kazarian had not approved it prior to it being made.  Mr. Rauzi called Ms. Croce at 10:00 P.M. three days before she was scheduled to being work and told her of Mr. Kazarian's action.  Ms. Croce had no job and remained unemployed for several months while she searched for a new job.

Evaluate the legality and ethics of Sunbeam's officer's actions with respect to Ms. Croce.

Situation 3:

Althea Caldwell is the director of Arizona's Department of Health Services (DHS).  DHS is charged the administration of the state's behavioral health system and is responsible for contracting with private providers for millions of dollars of mental health care each year for eligible patients.

Ms. Caldwell accepted a $20,000 per year director position for a hospital group corporation.  One of the hospitals in the group was one to which state contracts for mental health treatment had been awarded.

One month after accepting the position, Ms. Caldwell asked the state's attorney general for an opinion as to whether she had a conflict of interest.

Does Ms. Caldwell have a conflict of interest?

Situation 4:

Stanford University medical researchers conducted a study on the correlation between the use of fertility drugs and ovarian cancer.  Their study, published in the American Journal of Epidemiology, concludes that the use of the fertility drugs, Pergonal and Serophene, may increase the risk of ovarian cancer by three times.  The lead author of the studies, Professor Alice Whittemore, stated, "Our finding in regard to fertility drugs is by no means certain.  It is based on very small numbers and is really very tenuous."

FDA Commissioner David Kessler would like the infertility drug manufacturers to disclose the study findings and offer a warning on the drug packages.  He notes, "Even though the epidemiology study is still preliminary, women have a right to know what is known.  We're not looking to make more of this than there is."

If you were a manufacturer of one of the drugs, would you voluntarily disclose the study information?