SMU Classification: Restricted ECR 2019 Aug: Some questions for you to practise on. It would be good for you to come to class with a written framework of your answers. We will look at possible solutions in the last part of our class in Session 12/ Week 13. Discussing the questions with members of your group would prove most useful. The bracketed numbers refer to the number of marks out of 100. You may assume that the questions come from 2 hour papers. Not every issue has been directly covered in our classes, but most of them have been. We will try to do as many questions as possible in Session 12. How much we cover will generally depend on how prepared students are. Because of the limited time, I will also focus more on the scenario type questions rather than the essay type questions, although they may also appear. Here are some factors which are useful in answering ECR questions: If possible, you could, First, state a claim, i.e., take a position/stand, (which may be qualified) regarding the question/issue posed in the Question. Then provide reasons/arguments(s) in support of your claim. Next, provide objections/argument(s) against your claim, in general, and against your reasons in support of the claim, in particular. Finally, provide replies/arguments responding to the objections, if time allows. In your arguments, do remember to use Ethical Theories/Frameworks where relevant. 1. What does Rule Utilitarianism focus on? a) b) c) d) e) The consequences of a particular act. The rationality of a particular act. The consequences of a general rule. The rationality of a general rule. The fairness of a particular rule. (3 Marks) 2. Out of the following, which best states the second categorical imperative of Kant? a) Act so that you treat humanity, whether in your own person or in that of another, always as an end and never as a means. b) Act so that you treat all others, always as an end and never as a means. c) Act so that you treat all humanity, whether in your own person or in that of another, always as an end and a means only. SMU Classification: Restricted d) Act so that you treat humanity, whether in your own person or in that of another, always as a means and never as an end only. e) Act so that you treat all humanity, always as an end and never as a means only. (3 Marks) 3. Biases can affect ethical decision making. From the material covered in our course, which of the following is not an example of a Bias? a) b) c) d) e) Commitment Bias Confirmation Bias Hindsight Bias Foresight Bias More than one of the above (3 Marks) 4. The “spider-web theory” is one of the analytical tools that can help us make a better ethical decision. It is particularly relevant when we discuss the ethics of: a) b) c) d) e) Blood diamonds Biofuels Sexual harassment Biases None of the above. (3 Marks) 5. The policy of the Fair Consideration Framework of Singapore’s Ministry of Manpower is to try to ensure that generally: a) b) c) d) e) Singaporeans always get a job before foreigners Employers pay foreign workers a fair wage Singaporeans and foreigners have an equal opportunity at getting a job Singaporeans have a fair opportunity at getting a job Singaporeans get jobs that pay a fair salary. (3 Marks) 6. From the material and examples covered in our course, which of the following would be the least important characteristic of an ethical leader? a) b) c) d) e) Being willing to take risks Being willing to be vulnerable Being willing to make unpopular decisions Always having integrity Always being competent (3 Marks) 7. Under Corporate Governance, a company might have an Ethics Program. Which of the following is usually the most irrelevant to such a program? a) Audit system SMU Classification: Restricted b) c) d) e) Accounting system Investigation system Corrective system Communication system (3 Marks) 8. Which of the following (by itself), would generally not be a good reason to consider an advertisement unethical? a) It wants us to buy a face cream, but the advertisement is full of unbelievable exaggerations. b) It wants us to buy a face cream, but the advertisement contains a “half-truth.” c) It wants us to buy a face cream and the advertisement frightens people into doing so. d) It wants us to buy a face cream, and the advertisement portrays a fairer complexion as more desirable than a darker complexion. e) None of the above. (3 Marks) 9. Under Aristotle’s concept of Virtue ethics, one of the following is not relevant in the determination of a virtue: a) b) c) d) e) Purposive indisposition Being a mean Being subjective Being objective More than one of the above (3 Marks) 10. From the materials covered in our course, a crisis is special. Which of the following is not true of a crisis? a) b) c) d) e) It helps us focus on important things. It can lead to negative consequences. It can lead to positive consequences. We can have too much information. All of the above are true of a crisis. (3 Marks) 11. Exponential rise in oil prices in recent times has forced the airlines industry to introduce several cost-saving measures. Despite the various measures introduced, many airlines have filed for bankruptcy. For those still in business, they are continuously trying to find additional sources of revenue. Recently four airlines have suggested a “surcharge” on obese people, i.e. charging obese people something extra to cover the additional costs of flying them. It is indisputable; the airlines industry says that heavy people are more expensive to fly. For example, a study concluded that the 10 pounds air-passengers gained on average during the 1990s required an additional 350 million gallons of fuel a year. Additionally, given that existing social disincentives to obesity haven't worked, weight surcharges for airplane tickets and higher SMU Classification: Restricted rates for medical insurance may provide an additional incentive for people to stay fit, the airlines industry argues. Some NGOs have reacted with absolute outrage. They have called for a social boycott of airlines that charge extra for obesity. Charging extra for obesity is the worst form of discrimination, they argue. No amount of profits, in their opinion, can justify such pricing tactics. What is the right thing to do? Why? (15%) 12. Flight AA 123 of AmazingAir (“AA”) is about to start on a 2 hour domestic flight. The flight is full and all of the passengers are already on board. However, 3 crew members of another AA flight need to be on this flight urgently. In accordance with AA policy, the AA 123 crew offer $800 of vouchers to try to get 3 passengers to take the next flight, which is 20 hours later. They manage to get 2 people to accept the offer, but their third choice refuses the offer. Airport security is called. The passenger remains in his seat and is forcibly dragged off the plane. Other passengers have made videos of the incident and very soon, these videos go viral on the internet. Many viewers are shocked by what they see and leave many negative comments about AA. The removal appears violent and there is blood on the passenger’s face. One day after the incident, the CEO of AA makes this public apology, “This is an upsetting event to all of us here at AmazingAir. I apologize for having to re-accommodate these customers. Our team is moving with a sense of urgency to work with the authorities and conduct our own detailed review of what happened. We are also reaching out to this passenger to talk directly to him and further address and resolve this situation.” That same day, the CEO also later wrote the following to all employees of AA, "….This situation was unfortunately compounded when one of the passengers we politely asked to deplane refused, and it became necessary to contact Airport Security to help. Our employees followed established procedures in dealing with situations like this. While I deeply regret this situation arose, I also emphatically stand behind all of you,….." All of this soon becomes news all over the world and we even know that the passenger is a 69 year old doctor with the surname of Chen, who had loudly but not violently told the crew of AA123 he could not leave as he had to get back to his patients. From the materials and examples covered in our course, analyze the above scenario especially from the perspectives of ethical leadership and ethics during a crisis. If you believe that the CEO’s actions are wanting, please also suggest (i) reasons why you think he did what he did and (ii) exactly what he/the airline should have done, explaining your reasons as fully as you can. You may find it helpful to use relevant ethical theories to help support your main views. SMU Classification: Restricted [You may also discuss if there are facts (not stated in the question) which would affect your answer. Such facts cannot contradict those expressly stated in the question.] (25 Marks) 13. Autosafeti SpA (“Autosafeti”) is an Italian company that manufactures safety belts and airbags for the automotive industry. It has 10,000 employees worldwide and an annual profit in the range of US$700 million. 500 people work in Autosafeti’s ten year old factory in Fukushima, Japan. The 11 March 2011 Fukushima earthquake and tsunami damaged all of Autosafeti’s equipment and major parts of the factory. Fortunately, 400 workers managed to get to higher ground and survived the disaster. The bodies of most of the remainder have been recovered. Mr Alfredo Lombardi the CEO of Autosafeti feels that it is better to use the US$100 million in insurance money to build a new factory in Vietnam rather than in Fukushima. Autosafeti has also paid all workers for the month of March 2011. However, as the factory is no more, Autosafeti will be terminating operations in Fukushima and will no longer pay any salaries. A check with its Japanese lawyers has confirmed that Autosafeti is legally entitled to do this. In fact, the company only had a legal obligation to pay its workers up to 11 March 2011. Mr Yukio Yoshida, a foreman at the factory, feels that the company should do more……much more, “my house is destroyed, my wife killed. I have worked here for 10 years. Now, I have no job, no pay, nothing. I did not expect the company to be so uncaring. The company has a responsibility to us, to our community.” From a perspective of corporate social responsibility and with the use of at least two relevant ethical theories critically assess the ethical issues in the above scenario so as to help Autosafeti decide on what it should do. (25%) 14. “Give your mum and dad the best care in the world! At Eden Court, we’ll look after your elderly parents as if they were our own. Live the life YOU want to live. Free yourself from constant thankless chores. We have qualified doctors, nurses and helpers who will be more than happy to do them for you! Just $1500 per person per month.” This advertisement appeared in a popular Singapore women’s magazine. There is also a photo of a group of contented elderly matrons having high-tea in a posh garden setting. Mary looked at the advertisement wistfully, gave Eden Court a call and set up an appointment to visit them. Mary was thinking of letting her mum stay at Eden Court. Mum would probably get better care there, and Mary would be able to return to her career as a secondary school teacher. On visiting Eden Court, Mary realized that the home did not have a posh garden setting. It turns out that the photo was of an excursion that some residents had taken to a local hotel. Mary did not mind, and decided to sign her mum up for a two year residency. Mum too was quite happy with the idea. Just before mum was about to move into the home, Eden Court called to tell Mary that they had made a mistake in costing and that they had to increase charges to $2000 a month. (Please assume this to be true.) Although Mary knew that legally it was not right for Eden Court to do this and she could hold them to the contractual price of $1500, she agreed, as she felt that it SMU Classification: Restricted was still great value for money at $2000. The nurses at Eden Court are all very capable and perform their roles well. However, two of them only have qualifications from Cambodia, and due to language issues, their nursing qualifications are not recognized in Singapore. Technically, Eden Court employs them as helpers. But in fact, they have on many occasions happily rendered very competent nursing services to the residents. Critically examine the possible ethical issues in the above scenario. State clearly any reasonable assumptions that you make. It will be beneficial for you to use some of the ethical theories covered in our course to help justify your views. . (20%) End [Additional Question only if there is time. 15. BeautyUnique Pte Ltd (BU), a Singapore company, sells an anti-wrinkle product which it calls BU Miracle Kreme (or BUSK for short). One of the essential ingredients in BUSK is the Lamai flower. BU buys the essence of this flower from suppliers in India. The flowers are purported to come from the Asian kingdom of Shambhala (nestled at the foot of the Himalayas), where they are hand-picked at dawn (4am to 7am) by children between the ages of 5 and 11. The flowers bloom very near the ground, are very small and are almost green in colour; this makes young children the ideal pickers. Shambhala has a high unemployment rate, and the money the children earn is useful to their families. The children attend the village schools after they pick the Lamai flowers. BU commissioned five university research agencies to do tests on BUSK. Each test was performed on a group of 20 women. One test showed that 90% of users reported a visible reduction in the appearance of their wrinkles. Three tests were neutral. In the last test, 35% of the women tested reported a deepening of their wrinkles, as well as itchiness and significant swelling. The women in this last group tended to be fair-skinned Caucasians above the age of 65. The total cost of making a 30ml jar of BUSK is only $15, but BU decides to market it at $300 in the affluent Singapore market. One part of BUSK is manufactured in BU’s Indian factory, while the other part is made in Vietnam. However, these two parts are then combined in very specific proportions in BU’s small flatted-factory in an industrial town in northern France. The packaging of BUSK is very sleek. Nevertheless, 85% of the voluminous and weighty packaging amounts to air, glass, steel and plastic. BU has embarked on a TV advertising campaign in Singapore. In essence, the TV ad shows a sad old-looking woman whose husband has gone after a young girl in her twenties. This old woman starts to use BUSK and visibly transforms into a younger lady ( in reality, just the actress SMU Classification: Restricted removing her ‘old-lady’ make-up) and the young man whom viewers take to be her grandson turns out to be her new lover! The ad also states that “thorough tests have been done at five universities and as many as 90% of women reported a visible reduction in the appearance of their wrinkles.” The ad also states that BUSK is “made in France.” The ad is aired over national TV, as well as in clinics servicing the old. The owner of BU, Mrs Tan, wants BU to be seen as an ethical company, and she has come to you for advice as to whether what BU is doing is justifiably ethical, or otherwise. Please advise her as thoroughly as you can. Please also state clearly any reasonable assumptions that you may wish to make. (30%)]