Pension obligations are creating potential bankruptcy

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Reference no: EM132241785

Read the following two articles:

United Airlines Defaults on Pensions

PBGC in Trouble

After reading the two articles, answer the following questions:

Is it ethical for companies to default on their pension obligations (the defined benefit kind)? Why or why not? Mention the ethical rule(s) that you draw upon (e.g., utilitarian, moral rights, etc.) in providing your answer.

What should companies, who find themselves in a financial crisis, do when their pension obligations are creating potential bankruptcy?

Should the government do more? Are you willing to pay more taxes to keep the PBGC solvent in the face of a potential onslaught of pension defaults in the future?

Reference no: EM132241785

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