Arizona State University Multimedia Products Case Study

Read the following situation:

Bob is a salesperson that sells educational multimedia products. If he reaches $1,000,000 in sales by the end of the current year, he will receive a $10,000 bonus from his company. If he does not reach his goal, he gets no bonus. Bob wants to use his bonus as a down payment on a home for his wife and their two children. The family is currently living in a small two-bedroom apartment. The year ends in about 30 days, and Bob is $1,500 short of his sales goal.

An inner-city school, where the students currently have to share textbooks, would like to purchase some of Bob’s educational materials to provide their students with better learning opportunities, but they do not have any funds. Bob is considering giving the school $1,500 to buy the educational materials from him to reach his sales goal and receive the $10,000 bonus.

Analysis:

Evaluate the above ethical dilemma by applying each of the Seven Ethical Decision Making Principles listed below. Explain for each one whether Bob’s decision to give the underprivileged school $1,500 so they can buy his company’s products is ethical or unethical. Explain for each Principle whether Bob’s decision to provide the money for the school violates or does not violate each principle. Explain why or why not for each principle.

Ethical Decision-Making Principles

Principle of long-term self-interest (is it in the best interest of those affected)

Principle of personal virtue (is it honest and truthful)

Principle of religious injunctions (does it harm the sense of community)

Principle of government requirements (is it the law)

Principle of utilitarian benefits (does it serve the greater good of society)

Principle of individual rights (does it infringe on rights of others)

Principle of distributive justice (does it harm the least fortunate)

Also, Identify all the stakeholders (groups of individuals) affected by Bob’s decision and discuss how each one is affected by Bob’s decision (positively or negatively) and how.

Based on your Analysis:

1. would Bob’s decision to give the money to the school and require them to buy the educational materials from him be ethical? Why or Why not? What ethical decision-making principles apply to support your conclusion?

2. What decision would you make if you were Bob, and why?

3. If you were Bob’s manager, what would you want him to do, and why?