BUSI 5200
2-13-12

ML Ch 5, Case 1 & 2; ML Ch 6, Case 1 & 2

ML Ch 5 Case 1
1. SU
2. SU
3. SU
4. SU
5. SA
6. SA
7. SU
8. SA
9. SA
10. SA
11. SA
12. SA

Most instances create conflicts of interest that would require the disclosure of involvement. Examples in the case include; engaging in personal matters during business hours, using company resources for personal gain, and using employment status for personal gain.

ML Ch 5 Case 2
1. I do believe that management err when they established the bonus system. The new system caused a conflict of interest as the doctors received a direct personal benefit from their actions of raising the index to receive larger bonuses. I don’t believe the bonus system is immoral, but the actions of the doctors were immoral and illegal. The hospital could have developed an ethics training program for the doctors to understand the company’s ethical standards and the issues could have been avoided.

2. I believe the bonus system created a response of unintended organizational abuse as the system caused a moral dilemma for the doctors and they were unethical and illegal in their acts. I believe the abuse was unintentional by the organization and was abused by the doctors. The bonus system could be improved by not linking the bonuses to the index rather linking the bonuses to performance standards instead; this would prevent the moral dilemma of artificially inflating the index.

ML Ch 6 Case 1
1. Facilitating payments are considered illegal and immoral in the United States. Buying influence, including facilitating payments, bribes, and kickbacks prevent a person from making an objective decision regardless of the other party’s motive. This creates a conflict of interest as a person has a responsibility to represent the interests of the organization but will have personal gain, which is fundamentally considered