Week Three Ethic Questions Revised

Week Three- Ethic Questions
Student’s Name
Institutional Affiliation
Abstract
Business entities have the right to operate provide their activities are permitted by the law. Business ethics denotes universally acceptable practices, and this raises a question to the manner in which various entities run their affairs. The Alliance partners case study is a perfect example of a scenario where a myriad of ethical issues may arise. The money that they make and their expense is questionable, and instead of donating some of these funds to charity, the Alliance partners spend the money extravagantly. Even if they pay taxes and abide by all laws of the land, Alliance partners violate numerous ethics. The manner in which they acquire their money is dubious and questionable. Some of the documented costs are excessive and extravagant. Using the cloud has helped Alliance partners to reduce, their operational expenses from 62% to 9% of the total revenue. They had numerous alternatives regarding how they would have used excessive profits, and some of the proposals are contributing to charity, supporting an environmental cause and giving employee benefits.
From the perspective of Kant’s categorical imperative (pages 23–24), are Alliance’s partners’ meeting expenses and intended partner distribution unethical?
Yes, they are unethical. Even if there is doable funding available with an increase in profits, spending risibly on a 15,000 dollar a night rental is not a logical expense to justify.
From the utilitarian perspective (pages 60–61), are Alliance’s partners’ meeting expenses and intended partner distribution unethical?
Yes, they are unethical.

Spending $200,000 in a five-star hotel is wasteful and personalized. They want to rent the entire island regardless of the cost primarily so that they can have their personal and private time alone. Alliance partners have an opportunity of investing either $1 million, $3 million or $5 million which seems to be an insignificant amount of money as compared to the profit they make.
Milton Friedman, a world-renowned economist at the University of Chicago, stated that corporate executives have a responsibility to make as much money as possible if they don’t violate rules embodied in law and ethical custom.7
Do you agree with his statement? Why or why not?
Yes, I concur with Friedman. Everyone has an equal opportunity to amass as much wealth as they can, provided they follow the set rules and regulations. There should be no limit on the amount of money that someone can make if they ensure that all their activities are within the dictates of the law.
Friedman defined ethical custom narrowly to mean no fraud or deception. Using his definition, has Alliance acted ethically?
No, they acted unethically. Even if Alliance partners did not directly defraud the buyers and sellers of real estates, they used their data and information without consent. They did not consult the respective buyers and sellers, and yet they start amassing wealth from other people’s data.
Define, using your own words, ethical custom.
Ethical custom denotes what most people believe is ethically and morally acceptable to do.
Using your definition of ethical custom, has Alliance acted ethically?
No, they have acted unethically. A majority would not have supported their extravagant and selfish desires. Kind people would have considered donating some of the funds to charity.
Do you find any of the following excessive?
Explain your answers:
a. Spending nearly $200,000 on a five-day partners’ meeting for three partners and their spouses?
b. b. Earning a 74 percent gross profit?
c. Paying a semi-annual distribution of $1M, $3M, or $5M?
d. If so, which level is excessive to you?
Earning a 74% gross profit seems excessive considering that the number of companies offering similar services has been on the rise. Additionally, this would mean that such a company barely has any expenses and yet they need to market themselves as well as pay for the maintenance of the security systems.
Describe the profitability.
Profitability denotes their savings after their integration of a cloud platform rather than the web. Using the cloud has reduced the operational expenses from 62% to 9% of the total revenue.
From the data presented, what else might Alliance have done with its excess profits?
The Alliance partners intend to hire the entire island and hire staff to work there. They could also have spent the excess profits to please their spouses and probably purchase expensive wines and other drinks.
Do you think profitable companies, especially very profitable companies, have an ethical obligation to?
Contribute to charity?
Yes, they ought to give back to the society by sending some of their funds to charity. Companies are expected to showcase their support for the members of the community.
Lower prices when it is possible to do so and continue to earn a reasonable profit?
No, prices are dictated by market dynamics, and the profit that a company makes is dependent on its efforts. However, no single company should be allowed to extort people.
Contribute to environmental causes?
Yes, every company must conserve and preserve the environment at all costs. Industrial companies emit their waste products through land pollution, air pollution, and water pollution.
When possible, pay large bonuses to all employees, not just senior management?
Yes, the success of a company is dependent on the successful collaboration of employees and the senior management, so they deserve to be applauded. Giving employees bonus improves the morale of employees.
To most students, someone who earns $500,000 a year in income is rich. To someone who makes $500,000 a year, partners who pay themselves $1M to $5M every six months are wealthy. To someone making $2M to $10M a year, billionaires are rich. What do you think classifies someone as rich?
The cost of living has skyrocketed, and thus a rich person would be someone earning between $1 and $5 after every six months. This means that such a person can manage to take care of the primary and secondary needs in life.
Do you think rich people have an ethical obligation to?
Contribute to charity?
No, giving is individualized, and no one should be forced to give. Instead, the contribution should be voluntary.
Contribute to environmental causes?
Yes, every human being has a role to play in protecting and preserving the environment and rich people too should not be left behind in this cause.
Forego governmental benefits to which they are entitled, for example, not take Social Security that they don’t need?
Yes, government benefits should only be entitled to the less fortunate in society. There are millions of people in dire need of assistance through various social security benefits.