This memo provides an analysis of the ethical issues involved in hiring a scientist from a competitor who knows valuable proprietary information. It outlines the pertinent facts, the principal ethical problem of whether it is appropriate to hire the scientist, and the relevant ethical norms of rights/duties, fairness, utilitarianism, and virtues. The memo recommends applying these norms to determine whether hiring the scientist aligns with treating individuals and the company fairly, maximizing benefits for all stakeholders, and maintaining virtuous behavior.

1. Memo on Hiring
You are a manager in a firm in a very competitive industry. A
competitor has made an important scientific discovery that
could give it an advantage that would substantially hurt your
firm’s financial future. A scientist who knows the details of the
discovery applies for a job at your firm, and he is asking for a
salary of twice his current salary. There are no legal barriers to
hiring the scientist.
The CEO of your firm knows that you studied ethics in your
MBA program and so asks you to give her your advice. In your
memo to the CEO, indicate the principal ethical issues and the
ethical norms to be used, and make a recommendation.
Case – Memo on Hiring
Ethical Analysis: Procedure and Norms
Procedurefor analyzing an ethics case:
1. Gather and state the pertinent facts of the case.
2. Articulate the principal ethical problem (“Is it ethical
to....”).

2. 3. Identify the most useful ethical norm(s).
4. Provide an ethical solution to the case.
Norms for Ethical Decision Making:
1. Rights and duties: Personal and property entitlements of
individuals, and the obligations they impose
on others. [Based on the dignity of each individual person]
Rights are limited by their impact on other people
-- For example, one cannot shout "fire" without cause
Rights belong to person -- only by extension or by law to an
organization.
Sense of personal rights are very strong in the U.S.
Examples:
Safety in workplace [breathing carcinogens assembling
products];
Violation:
Sexual harassment;
Eavesdrop on phone
2. Fairness or Justice:Fair distribution of benefits and burdens
of actions or policies
Fairness = Justice = equity; -- but is not the same as equality.
Examples:
Violation:

3. Bribery; Loafer on job;
Exploit illegal aliens: very low wages, yet making good profits
3. Utilitarianism: Actions judged by their consequences: "The
greatest good for the greatest number."
Examples:
Build a freeway [property rights are sacrificed];
GM plant on site of old Dodge Main Plan + neighborhoods
Pollution control regulation (e.g. Clean Air Act) [vs. property
rights]
Introduce labor saving equipment and processes [vs. lost jobs]
Violation:
Benefit self; hurt larger group
4. Common Good: The good that is good for all in common,
which can be pursued together & in common
- Each person is connected to and is dependent on other

4. persons.
Examples:
Goal of good government – e.g. U.S. Congress and legislation
Support issues that result in good of community
Violation:
Lobbying for special interests
Seeking only what is good for me
+ Virtue: Actions arise from good ethical or moral habits of
person
A developed virtue is part of the make-up of the person [almost
instinctive].
Cluster of virtues and vices make up one’s character
Examples:

5. Trust: of colleagues, subordinates, customers and others [also
trustworthy]
Honesty: transparent with all
Humility: not seeking own benefit [e.g. as Pope Francis; &
CEOs according to James Collins]
Courage: speak truth to superiors; willing to take reasonable
risks;
+ prudence, self-control, perseverance, and many other
virtues
Social Justice Principles
The dignity of every person and human rights
The unique worth and value of every person. Human dignity
forms the basis for all human rights. It is based on one’s
existence in the image and likeness of God, not on wealth,
success, work or productivity.
Solidarity, common good and participation
The good that is good for all in common, which is pursued
together and in common. Each person is connected with and
dependent on other persons. This stems from the essential
social nature of the human person, who -- while possessing
value as an individual -- is social to the core.
Family life
The family, including spouse and children, must be supported.
This requires a living wage.

6. Subsidiarity and the proper role of government
All parts of society and government have a proper role and each
should support the proper role of each other. Practically, this
often means that a central government should support local
government and should only do things that a local government
is ineffective in doing or unable to do.
Property ownership: rights and responsibilities
People have a right to private property to support
themselves and their families,
and also have corresponding responsibilities to others.
The dignity of work, rights of workers and support for labor
unions
People have a right to decent, safe and productive work, fair
wages and have the right to organize for better
wages and working conditions.
Economic development and justice
Economic development is a priority for people and for
society to bring people out of poverty and
to provide a living wage.
Wealth is an instrument to benefit all. The economy exists to
serve people, not the other way around.
Peace and Disarmament
Work for peace between peoples and nations; eliminate or
reduce nuclear and other weapons.
Option for the poor and vulnerable

7. A special, preferred concern for the poor and marginalized,
practiced as Jesus did. The poor include widows, orphans,
economically poor, immigrants, persons with disabilities,
victims of injustice and oppression.
Stewardship and sustainability
Care for God’s Creation -- Our Common Home and an
intelligent and responsible concern for the persons and
physical resources in one’s charge. This includes handing on to
future generations a world that is sustainable. Sustainable
development is development that meets the needs of the present
without compromising the ability of future generations to meet
their own needs.
Transparency
Honesty and clarity in all transactions, contracts,
communications and reports.
Ethical Analysis + Soc Just Def Fac ‘16 Ethics in Bus
5/18/16