I. Answer one of the following questions:
- According to the canonical view of business social responsibility, the moral obligation of business is to maximize profits while obeying the law. What justification is there for this model of business social responsibility? What shortcomings, if any, does it have? Incorporate at least one example each of both ethical and unethical business conduct in your discussion.
- Proponents of free markets depend upon market mechanisms to distribute goods and services in the most efficient manner. This view assumes that self-interested participants in the market will trade their resources in ways that improve their condition. Thus, no one will be made worse off by free trade, and the condition of many will be improved. Use a particular example or examples to evaluate this line of argument. In particular, discuss types of goods that free markets are arguably incapable of providing (environmental quality, worker safety, etc.). What is the proper role of government with respect to goods that the market fails to distribute efficiently?
II. Answer one of the following questions:
- Rosen argues that hostile environment sexual harassment should be prosecuted as a violation of the right to privacy rather than discrimination. In this way, he hopes to diminish the incentive for employers to violate privacy by monitoring e-mail and other employee activities that might give offense to coworkers. Does Rosen’s proposal strike the right balance between privacy and discrimination concerns? Or does he, as Wells and Kracher would probably argue, leave some deserving victims of sexual harassment without legal recourse?
- The Foreign Corrupt Practices Act forbids bribery of foreign officials by U.S. companies as a means of acquiring or retaining business contracts. Business interests have complained that the law puts them at a competitive disadvantage in the foreign market, and that they should be allowed to follow the customs of the countries in which they do business. Evaluate this objection, considering whether or to what extent it is appropriate for the domestic government to restrict the actions of U.S. business abroad.
- The purpose of advertising is to sell products by stimulating demand. Drawing on the papers by Preston, Nelson, and Lippke, discuss whether or to what extent advertising should be regulated to protect consumers. Does misleading or deceptive advertising thwart consumer autonomy and the proper operation of the market, as Lippke contends? Or is Nelson right to take a more hands-off approach in the expectation that consumers will see to their own advantage and advertising will not sustain bad products in a competitive market?