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ethiCS GUiDe Cloudy Profit?

One of the items on our agenda is whether we want to only so much that Jacob and his crew can absorb. Meanwhile, 245
issue a $1 million, a $3 million, or a $5 million partners’ order the lobster and wait until you taste tonight’s wines.”
distribution.” “That’s disgusting.”
“No!” Shelly sounds stunned. “OK,” Bart says. “Don’t drink the wine. You want your
“Yup. Using the cloud, we’ve reduced our operational distribution?”
expense from 62 percent of our revenue to 9 percent. I’m “No; I mean yes, but this is crazy. It can’t last.”
plowing money back into R&D as fast as I can, but there’s “Probably not. But it’s what we’ve got right now.”

DiSCUSSion QUeStionS

When answering the following questions, assume that c. Paying a semiannual distribution of $1M, $3M, or
Alliance has done nothing illegal, including paying all fed- $5M? If so, which level is excessive to you?
eral, state, and local taxes on a timely basis. 5. Describe the primary driver in Alliance’s current
1. From the perspective of Kant’s categorical impera- profitability.
tive (pages 56–57), are Alliance’s partners’ meeting 6. From the data presented, what else might Alliance have
expenses and intended partner distribution unethical? done with its excess profits?
2. From the utilitarian perspective (pages 92–93), are 7. Do you think profitable companies, especially very prof-
Alliance’s partners’ meeting expenses and intended itable companies, have an ethical obligation to:
partner distribution unethical? a. Contribute to charity?
3. Milton Friedman, world-renowned economist at the b. Lower prices when it is possible to do so and continue
University of Chicago, stated that corporate executives to earn a reasonable profit?
have a responsibility to make as much money as possible c. Contribute to environmental causes?
as long as they don’t violate rules embodied in law and in d. When possible, pay large bonuses to all employees,
ethical custom. 2 not just senior management?
a. Do you agree with his statement? Why or why not? 8. To most students, someone who earns $500,000 a year
b. Friedman defined ethical custom narrowly to mean no in income is rich. To someone who makes $500,000 a
fraud or deception. Using his definition, has Alliance year, partners who pay themselves $1M to $5M every
acted ethically? 6 months are rich. To someone making $2M to $10M
c. Define, using your own words, ethical custom. a year, billionaires are rich. What do you think classi-
d. Using your definition of ethical custom, has Alliance fies someone as rich?
acted ethically? 9. Do you think rich people have an ethical obligation to:
4. Do you find any of the following excessive? Explain your a. Contribute to charity?
answers: b. Contribute to environmental causes?
a. Spending nearly $200,000 on a five-day partners’ c. Forego governmental benefits to which they are en-
meeting for three partners and their spouses? titled, for example, not take Social Security that they
b. Earning a 74 percent gross profit? don’t need?