104 UNIT ONE The Foundations Stilton believes that most of the policies he has p
ID: 399082 • Letter: 1
Question
104 UNIT ONE The Foundations Stilton believes that most of the policies he has purchased are legitimate, but he knows that some probably are not. Using the information presented in this chapter, answer the following questions. 1. Would a person who adheres to the principle of rights consider it ethical for Stilton not to disclose the potential risk of cancellation to investors? Why or why not? 2. Using Immanuel Kant's categorical imperative, are the actions of RightLiving, Inc, ethical? Why or why not? 3. Under utilitarianism, are Stilton's actions ethical? Why or why not? What difference does it make if most of the policies are legitimate? 4. Usi ing the Business Process Pragmatism TM teps discussed in this chapter, discuss the decision process Stilton should use in deciding whether to disclose the risk of fraudulent policies to potential investors.Explanation / Answer
1. It is not ethical for Stilton not to disclose the potential risk of cancellation to investors because the investors are cheated if they do not get the benefit of the policy that they have bought. So Stilton must disclose everything to potetial investors and it is the decision of investors to buy or not buy the policy after they are informed about the clauses.
2. Actions of RightLiving are not ethical because the company "guarantees" a positive return on the investment made by the investors by buying the policies. However, there is no guarantee of positive return since there is a chance of policy cancellation by the insurance companies.
3. Stilton's actions are not ethical under utilitarianism because the cancelled policies do not have any utility and are of no use to the investors. So Stilton is in a way selling policies to the investors that do not have any utility which constitutes unethical principle. If most of the policies are legitimate then the utility of the policies gets increased and selling them becomes ethical.
4. Decision process that Stilton must use in deciding whether to disclose the risk of fraudulent policies to potential investors is that he must first be aware of the risk to potential investors if they have such policies and then get the number of policies which might be fraudulent. He must then try for any corrective action which can be taken to make the policies non-fraudulent. After he had tried and not succeeded, he must inform the potential investors about such policies and apologise to them for selling them such policies. He must also replace such policies with the correct ones.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.