The Hon. Justice Potter Stewart defined ethics as “knowing the difference between what you have a right to do and what is right to do.” Blue Star Steamship Lines (BSSL) has recently found itself involved in several situations where their legal rights were overshadowed by the need to do what was ethically right. In making these decisions, BSSL has learned that the ethically right choice is often more difficult than simply doing what the company has the right to do.

Over the course of the previous 10 years, BSSL has worked hard to acquire the rights to develop oil contracts in South America. After sanctions preventing BSSL’s entrance into the South American market were finally lifted, BSSL had to decide if developing in this area was the right thing to do. BSSL’s focused research on Venezuela exposed several ethical problems with the country. It is widely believed that Venezuela’s democratic elections are rigged. Therefore, it is highly unlikely that President Hugo Chavez’s regime will end without a military coup (Tippee, 2008). Additionally, Venezuela requires all foreign oil operators to form partnerships with the state owned oil company, PdVSA. These partnerships are often one-sided and PdVSA is does not have a positive labor or environmental record (Briscoe, 2006). Despite the allure of inexpensive drilling in oil rich Venezuela, BSSL has no choice but to avoid involvement in the region on ethical grounds.

BSSL found its cruise lines in an ethically challenging position when a member of the crew robbed a traveling couple resulting in the husband’s death. Since the cruise ship Minnow sails under the Liberian flag, BSSL is bound by Liberian law when acts such as these occur at sea (Legal Database, n.d.). Unfortunately for the passenger in question, Liberian law offers very little protection for women. In this case, the passenger was not entitled to any compensation from BSSL since the property lost is not considered to be hers. Fortunately, the Cruise Lines International Association (2008) has specified guidelines to help cruise lines make the ethically right decision. The CLIA has a zero tolerance policy for crimes committed at sea (CLIA, 2008). In order to stay in compliance with the CLIA’s guidelines, BSSL had no choice but to work with the victim to ensure justice was served.

BSSL also ran into ethical complications with its acquisition of Appalachian Bell. This small phone company had been running a service whereby it provided anonymous billing for 900 number services. An elderly couple had managed to run up a $500 phone bill when their grandson made numerous calls to one of these services. Although the couple refused to pay their bill, Appalachian Bell was well within their rights to collect. The Federal Trade Commission (FTC) has very strict rules regarding the operation of 900 number services including how they can be advertised and how the can be billed (FTC, 1996). Although Appalachian Bell can discontinue the couple’s phone service if they fail to pay, this doesn’t mean they should. 900 number services are often confusing and one mistake can quickly become expensive. The right thing to do in this case was to offer the couple a charge forgiveness. The understanding in this case is that future charges will be collected or the couple’s phone service will be terminated.

Finally, BSSL has recently been involved in the Federal Communications Commission’s (FCC) decisions regarding the cross-ownership of local newspapers and television stations. The FCC decided in 1975 that cross-ownership presented a significant risk to customer’s ability to get news from an outside source. At the time, the Justice Department considered cross-ownership to be a monopoly issue (Wilke, 2000). Recently, the FCC amended this decision to allow cross-ownership in the top 20 U.S. markets. The U.S. Senate, led by Senators Dorgan, Clinton, and Obama, immediately moved to overturn the rule change. On this issue, the FCC seems to be making the change to protect the newspaper industry. Sen. Dorgan adamantly denies the FCC’s responsibility to protect the interests of newspapers (Skiba, 2008). Although the rule change seems logical, BSSL must keep the best interest of consumers in mind. Although there is an excellent profit opportunity in the acquisition of same market newspaper and television stations, Ferrell, Fraedrich, and Ferrell (2008) point out that customer service is entwined with customer’s perception of a company’s ethical behavior. Statistics show that 60 percent of consumers are more concerned with a company’s social record than brand recognition (Ferrell, Fraedrich, & Ferrell, 2008). Therefore, BSSL must oppose the FCC rule change in order to ensure consumers receive fair treatment of the news.

For the most part, these ethical decisions are fairly easy to make. When presented with a complicated situation, it is often the case that deciding what a company has a right to do is the more difficult question. The ethical decision is usually obvious when a moral compass is applied. James Burke, CEO of Johnson & Johnson, was faced with just such a decision when bottles of Tylenol were tampered with in 1982. He could have chosen to cover up the incident, but instead decided that the morally right thing to do was come forward and tell the public what was going on. Although the incident cost Johnson & Johnson a great deal of money in the short term, the long-term effect was to strengthen the trust between them and their consumers (Boatright, 2008).

Briscoe, I. (2006). The spoils of oil. (Cover story). New Internationalist, pp. 8,9. Retrieved October 10, 2008, from Academic Search Premier database.

Boatright, J. (2007). Ethics and the conduct of business, 5th ed. Upper Saddle River, NJ: Pearson.

Cruise Lines International Association. (2008). Personal safety and security. Retrieved October 14, 2008.

Federal Trade Commission. (1996). 900 numbers: FTC rule helps consumers. Retrieved October 17. 2008.

Ferrell, O. C., Freadrich, J., & Ferrell, L.. (2008). Business ethics: Ethical decision making and cases (7th ed.). Boston: Houghton Mifflin.

Legal Database. (n.d.). Admiralty law overview. Retrieved October 14, 2008.

Skiba, K. (2008). Senate Committee Votes to Overturn FCC Cross-Media Ownership Rules; Both Hillary Clinton and Barack Obama are among the cosponsors of the measure that now heads to the full Senate. U.S. News & World Report (April 24, 2008).

Tippee, B. (2008, August). High oil prices form weak base for state power. Oil & Gas Journal, 106(29), 76. Retrieved October 10, 2008, from ABI/INFORM Global database. (Document ID: 1529788771).

Wilke, J. R. (2000). Multi Media: Tribune Co. Deal Puts Cross-Ownership Rule In the Cross Hairs — Foes of Ban on Holding Print, TV Outlets in Same City Say It Is Outdated Now — Legacy of Bluefield, W.Va. Wall Street Journal, p. A1. Retrieved November 4, 2008, from ABI/INFORM Global database. (Document ID: 50995892).

In 1975, the Federal Communications Commission (FCC) adopted a rule prohibiting companies from owning both newspapers and broadcast television stations in the same market. The rule first received consideration in the early 1970s when the U.S. Justice Department was investigating newspaper consolidation. The Justice Department learned that with limited television options, media monopolies were appearing in many rural markets. In an attempt to limit these monopolies, the FCC passed the ruling barring cross-ownership (Wilke, 2000).

Although it has been challenged many times over the intervening years, the FCC has recently moved to throw out the rule in the top 20 U.S. media markets. Legislation has been introduced by Sen. Byron Dorgan and backed by Sen. Hillary Clinton and Sen. Barack Obama in an attempt to overturn this rule. The FCC has claimed the rule change is necessary to protect struggling newspapers who are having trouble competing in today’s market. Dorgan’s response to this comment is that there is nothing in the FCC’s mandate that requires it to protect the interests of newspapers rather than the American people (Skiba, 2008).

The FCC rule has strong ethical roots. The cross-ownership ban is designed to protect the American public from monopoly-controlled media. When the rule was passed in 1975, most cities only had three broadcast stations and newspapers were still the primary source of news. At the time there were no cable news networks, satellite television, or Internet-based reporting (Wilke, 2000). The situation in rural America has not changed much in the last 30 years, and the ruling has historically been protected by legislators from rural states. For these rural areas, the potential to have all news filtered through one monopoly is a very real possibility.

Ethics aside, there is a legal matter to be considered. In the 1970s, the limited availability of news medium meant that a single company could easily gain control of all news outlets in a single city. The proliferation of satellite and cable television, as well as the Internet, has changed the landscape. Increasingly, Americans in rural markets have access to media outside their local broadcast and newspaper area. Therefore, it can be argued that no single company can possible control a majority of the media in a single location thanks to these other media sources. Sen. Dorgan claims that many of these alternative news sources are merely another mouthpiece for the monolithic media organizations (Skiba, 2008).

Unfortunately, BSSL must take a stance on this matter since it directly impacts business. The recent FCC rule change allows companies to own both newspapers and television stations in the top 20 markets in the U.S. Although the Senate is opposed to this change, there seems to be some merit to it. If there is any evidence of a single company holding all media in an area, the U.S. Justice Department has the ability to act. That being said, BSSL has a responsibility to be forthright with its customers. Although owning multiple media sources in a market allows for better coverage opportunities, BSSL must ensure that customers are aware of BSSL’s involvement. Therefore, BSSL should make every effort to inform customers that the media in question is a subsidiary of BSSL.

Wilke, J. R. (2000). Multi Media: Tribune Co. Deal Puts Cross-Ownership Rule In the Cross Hairs — Foes of Ban on Holding Print, TV Outlets in Same City Say It Is Outdated Now — Legacy of Bluefield, W.Va. Wall Street Journal, p. A1. Retrieved November 4, 2008, from ABI/INFORM Global database. (Document ID: 50995892).

Skiba, K. (2008). Senate Committee Votes to Overturn FCC Cross-Media Ownership Rules; Both Hillary Clinton and Barack Obama are among the cosponsors of the measure that now heads to the full Senate. U.S. News & World Report (April 24, 2008).

Ferrell, O. C., Freadrich, J., & Ferrell, L.. (2008). Business ethics: Ethical decision making and cases (7th ed.). Boston: Houghton Mifflin.

The ethical dilemma in this case is less about its outcome, and more about the presentation of a supervisor’s decision or recommendation. This case might have never gone to trial if Ms. Crone had been presented with her supervisor’s recommendation in a courteous and professional manner. Instead, the supervisor’s demeaning response reminds the reader of negative stereotypes associated with women. John Boatright (2007) points out that individuals are discriminated against when they are “treated on the basis of group characteristics” rather than their own merit (p. 184). Boatright (2007) goes on to point out that stereotyping is morally objectionable because it results in individuals being judged by their membership in groups rather than their own strengths (Boatright, 2007). Therefore, this case doesn’t open any avenues for discrimination among other employers. Instead, it shows that discrimination is a matter taken very seriously by the courts, and any decision that may be construed as discrimination will be given serious review.

This case is about judging an employee’s performance based on their individual merits, and upholds the employer’s right to make such a judgment. In effect, it confirms that an employer has the right to make a decision as long as it can be proven that the decision was not a result of discrimination. Any employer, BSS included, should take these results and incorporate them into their policies and procedures relating to Equal Employment Opportunity (EEO). It is in the employers best interest to make judgment’s based on individual merit, and management should be encouraged to do so. That being said, it is also in the employer’s best interest to establish an oversight committee to ensure that these decisions truly are made in an appropriate fashion.

Boatright, J. (2007). Ethics and the conduct of business, 5th ed. Upper Saddle River, NJ: Pearson.

Crone v. United Parcel Service, Inc., 301 F.3d 942 (8th Cir. 2002).

Ferrell, O. C., Freadrich, J., & Ferrell, L.. (2008). Business ethics: Ethical decision making and cases (7th ed.). Boston: Houghton Mifflin.

In a situation where a company is being threatened to discriminate against an ethnic group, there are legal and ethical considerations to be addressed. Although the considerations are fairly obvious, the company in question may find itself in an even more difficult situations if threats escalate to violence.

It is common knowledge that a proprietor has the right to refuse service to anyone. That maxim is generally true, but the Civil Rights Act of 1964 guarantees that service can not be denied based on race, color, religion, or national origin. The U.S. Supreme Court upheld the constitutionality of this act in two famous cases: Atlanta Motel v. U.S. (1964) and Katzenback v. McClung (1964). Both cases brought int question the constitutionality of the 1964 Act based on the interstate commerce enjoyed at their locations. The BSSL casino, “The Queen of the Nile,” is now being asked to refuse service to a group based on their national origin. Like the aforementioned cases, the casino does not have the right to refuse such service and would soon find itself in litigation by so doing.

The ethical question relating to discrimination is easily resolved. In its ruling of Atlanta Motel v. U.S. (1964), the U.S. Supreme Court acknowledged that the Civil Rights Act of 1964 was legislation “against what [Congress] considered to be moral wrongs” (para. 5). Additionally, although four airlines denied any discrimination against Arab-Americans, the embarrassment relating to such a disclosure was enough to get them to agree to spend $1.5 million on civil rights training (Ferrell, Fraedrich, & Ferrell, 2008). Therefore, it is obvious that the only ethical decision available to is to continue to service all customers regardless of race, color, religion, or national origin.

The real question in this case relates to the safety of patrons and employees of BSSL’s The Queen of the Nile casino. Since the hate group involved in this case has escalated to violence, there is a serious threat to the community. Since BSSL does not have the legal or ethical option to acquiesce to the demands of the terrorists, they must choose between shutting down the casino completely or remaining open and risk more violence. For the safety of the public, The Queen of the Nile should temporarily shut down while law enforcement works against the terrorist group. Additionally, staff should be able to choose to remain at home if they feel threatened by the working conditions. Since the casino can not be expected to remain closed indefinitely, it should re-open its doors after a brief time and resume normal operations. BSSL will need to work with local law enforcement to provide the security necessary to protect both the staff and patrons of The Queen of the Nile.

Atlanta Motel v. U.S., 379 U.S. 241 (1964).

Ferrell, O. C., Freadrich, J., & Ferrell, L.. (2008). Business ethics: Ethical decision making and cases (7th ed.). Boston: Houghton Mifflin.

Katzenback v. McClung, 379 U.S. 294 (164).

Blue Star Steamship Lines (BSSL) operates several cruise ships under the flags of the Bahamas and Liberia. These flags of convenience offer BSSL the opportunity to operate under the statutes of the aforementioned nations. Therefore the death of Mr. Lowell and the theft of the Lowell’s cash and jewelry are affected by these flag of convenience. In particular, this case happened aboard the BSSL cruise ship Minnow under the flag of Liberia. For the purpose of this case, we will assume that under Liberian law a wife is the property of her husband without the right to sue or claim damages. Additionally, any property that is owned by the couple is the sole property of the husband.

Due to its open registry, also known as a flag of convenience, Liberia has the second largest fleet after Panama. Developing countries like Liberia allow foreign vessels to register under their flag for a small registration fee. In the case of Liberia, the fee for a 30,000 ton vessel may cost as much as $13,225 in the first year and $11,500 per year thereafter. For many shipping companies, this fee is a small price to pay in order to avoid the taxes and labor costs associated with doing business under the U.S. flag. In fact, this option is so appealing that 2,511 ships are registered under the flag of Liberia, and 7,357 more are registered under the flag of Panama (International, 2007).

The importance of flags of convenience is based on Admiralty Law. According to Admiralty Law, the country of jurisdiction for a seagoing vessel is based on the flag it flies (Legal Database, n.d.). Therefore, in the case of the BSSL ship Minnow; the country of jurisdiction is Liberia. In other words, because the Minnow flies the Liberian flag, the ship is treated as if it is a part of Liberia.

The legal case for Mrs. Lowell is fairly cut and dry. Under Liberian law, Mrs. Lowell does not have the right to sue BSSL for damages in this case. Additionally, since the property that was stolen was her husband’s and not hers, BSSL has no legal obligation to compensate her for her loss. Admiralty law does allow a country to exercise its jurisdiction when an incident occurs off the country’s coast (Legal Database, n.d.). Unfortunately, for Mrs. Lowell in this case, the incident occurred while at sea and not in port. Additionally, the port in question, Grand Cayman, is not under the jurisdiction of U.S. law.

If this incident had occurred at one of the U.S. resorts operated by BSSL, the situation would be much different. In that case, BSSL would be bound U.S. law and Mrs. Lowell would have much more protection under that law. Vicarious liability is the legal liability suffered by one individual for the criminal actions of another. In the case of an employee, the criminal action must be closely related to the employee’s work. The Oxford Dictionary of Law provides the example of a driver accused of negligent driving. In this case, the criminal action is related to the nature of a driver’s work. If, on the other hand, the driver were to get out of the vehicle and assault a pedestrian, the employer could not be held responsible (Martin & Law, 2006).

If this incident had occurred under U.S. jurisdiction, Mrs. Lowell would be able to argue that BSSL is vicariously responsible for the actions of its employees and the resulting death of her husband. Although there is some question whether the actions of these BSSL employees was conducted during the course of their work, it might be reasonable to assume that the it is the duty of every crew member to safeguard the well-being of the passengers. In that case, BSSL would be responsible since the employees willfully neglected their duty and assaulted Mr. Lowell. Additionally, since property owned by a couple reverts to the surviving member of the couple, Mrs. Lowell would be entitled to compensation for the loss of her cash and jewelry.

The Cruise Lines International Association (2008) has specified a zero tolerance policy for crimes committed on board. Pursuant to this policy, BSSL should treat this prosecution of this incident as they would any other crime on U.S. soil. Incidentally, U.S. authorities have the right to investigate crimes committed against Americans while on board a ship, even if that ship is in international waters (CLIA, 2008). In this case, BSSL should work with Mrs. Lowell to contact the FBI and initiate an investigation into the theft of her property and the death of her husband. Since BSSL can not be held liable under U.S., there is no risk to the company and it is in the public interest to see the perpetrators brought to justice.

Ferrell, Fraedrich, and Ferrell (2008) illustrate the importance of ethics in relation to customer satisfaction. In order to survive, a company must to see to maintain long-term relationships with its customers. In a poll of 25,000 people from 23 countries, it was discovered that 60 percent of consumers focus on social responsibility rather than brand recognition when making purchasing decisions (Ferrell, Fraedrich, & Ferrell, 2008). Therefore, BSSL must make the ethical decision and compensate Mrs. Lowell for her loss. It is important for the image of BSSL that customers feel safe on its ships and confident that they will be compensated if their security is in any way impugned. Furthermore, BSSL must not hide behind the Liberian flag of convenience in order to save money at the expense of consumer confidence and satisfation.

Cruise Lines International Association. (2008). Personal safety and security. Retreived October 14, 2008.

Ferrell, O. C., Freadrich, J., & Ferrell, L.. (2008). Business ethics: Ethical decision making and cases (7th ed.). Boston: Houghton Mifflin.

International: Keeping the country afloat; Liberia. (2007). The Economist, 384(8543), 52. Retrieved October 14, 2008, from ABI/INFORM Global database. (Document ID: 1325019201).

Legal Database. (n.d.). Admiralty law overview. Retrieved October 14, 2008.

Martin, E. A., & Law, J. (2006). Vicarious liability. Oxford Dictionary of Law. Retrieved October 14, 2008.

When operating in less developed countries, multi-national corporations (MNCs) are bound by local governments to pay workers the country’s minimum wage. Wages paid by MNCs is usually above the minimum wage; making these jobs more desirable. The unfortunate circumstance in many less developed countries is that the minimum wage is too low for a worker to live and support a family. Therefore, the wages paid by MNCs, though above the host country’s minimum wage, are still too low to keep the worker and family above poverty (Boatright, 2007).

Unfortunately, raising the wages of workers in these countries is not a straight-forward task. If the wages are raised too high, the incentive for MNCs to operate in these countries dries up. After all, their main resource is inexpensive labor. If wages get too high, MNCs are more likely to tap into the expensive, but highly skilled labor available in developed countries. This fact has some economists complaining that raising the minimum wage in developing countries is morally objectionable (Boatright, 2007).

Due to the fact that low wages in developing countries are required for those countries to maintain their competitive advantage, there is really no right answer to the question “What is a justified wage?” This question can only be answered in the context of the country in question. It is imperative that developing countries keep wages low enough to attract foreign investment, yet high enough to support workers and their families. Therefore, the only serviceable definition for a justified wage is one that is low enough to keep MNCs interested and high enough to support the workforce (Boatright, 2007).

In July of 2007, the Fair Labor Standards Act was amended to raise the U.S. minimum wage to $5.85 per hour (U.S. Department of Labor, 2008). This is in sharp contrast to the minimum wage in Taiwan which was raised to $2.95 per hour in 2007 (Taiwan regulations, 2008). Although this wage is not low compared to many undeveloped countries, it is still significantly lower than the minimum wage in the United States.

Taiwan represents an interesting case. As Boatright (2007) points out, Taiwan is no longer a low-wage country. Taiwan used its low wages to attract outside investment which resulted in an increase in the number of jobs available. These increases in investment lead to greater development in the country. The result is that Taiwan now has higher-paying jobs (Boatright, 2007).

Taiwan’s lower minimum wage is an excellent example of a justified wage. It is still low enough to attract outside investment for Taiwan, but high enough to provide adequate income due to Taiwan’s lower cost of living. In addition, Taiwan workers can earn much more due to the effect of the market on wages. The average pay in the industrial and service sectors in Taiwan is $7.19 per hour (Taiwan regulations, 2008). By all accounts, Taiwan is a model for less developed countries to follow.

Boatright, J. (2007). Ethics and the conduct of business, 5th ed. Upper Saddle River, NJ: Pearson.

EFFORTS TO ESTABLISH MINIMUM WAGE REGULATION IN AMERICA. (1936, November). Congressional Digest. Retrieved June 20, 2008, from Academic Search Premier database.

Taiwan regulations: Minimum-wage rise. (2008, January). EIU ViewsWire. Retrieved June 22, 2008, from ABI/INFORM Global database. (Document ID: 1423494501).

U.S. Department of Labor. (2008). Compliance assistance: Fair labor standards act (FLSA). Retrieved June 22, 2008, from http://www.dol.gov/esa/whd/flsa/.

There are four considerations that an MNC must take into account when deciding how to conduct business ethically in a less developed country. The first consideration is morally relevant differences. Because of the socio-economic conditions of Third World countries, actions that would be considered unethical in the United States are morally required. The example that Boatright (2007) uses regards the use of prescription drugs in Bolivia. Powerful antibiotics have been used in Bolivia in cases that would not be allowed in the United States. Unfortunately, the state of health care in Bolivia is such that by the time a patient is able to accept treatment, they must use the strongest available medication to ward off a multitude of health issues. In this case, although the action taken by the pharmaceutical company would be disallowed in the United States, it is saving lives in Bolivia (Boatright, 2007).

The next challenge is to accept a variety of ethical outlooks. The absolutist philosophy tends toward ethnocentrism. The belief that one culture’s norms is morally superior to another is a form of discrimination. In Japan, gift giving is a form of relationship building, similar to the America tradition of “doing lunch.” In the United States, this sort of gift giving would be considered bribery and result in disciplinary action (Boatright, 2007). In his travels, Georges Enderle (2006), a professor of business ethics, has found that all countries believe their ethical standards are superior. MNCs must maintain an open-minded approach to the host country’s culture in order to be successful.

Another challenge when conducting international business is accepting the people’s right to be involved in decisions that affect them directly. In other words, assuming that basic human rights conditions are met, it should be the responsibility of the local government to determine the standards of less developed countries. If the people have adequate voice in the government, then MNCs have an obligation to meet the standards imposed by their government. This should not be seen as carte blanche to behave in a way that would be unacceptable in the First World, but the local standards should be given due respect and tempered with the ethical mores of the First World (Boatright, 2007).

The final ethical challenge faced by international businesses is dealing with the local requirements to do business. There are times when the government will impose requirements on MNCs that must be met or the MNC will not be allowed to operate within the country. Boatright (2007) gives the example of Arab countries not allowing women or Jews to work on sites operated by MNCs. In the United States, this constitutes a form of discrimination and would be clearly illegal. Fortunately, these cases are rarely of the all-or-nothing variety. Still, MNCs must decide whether the requirements of the host country are morally reprehensible before proceeding (Boatright, 2007).

Boatright, J. (2007). Ethics and the conduct of business, 5th ed. Upper Saddle River, NJ: Pearson.

Enderle, G. (2006, September). Other People’s Ethics. BizEd, 5(6), 25-25. Retrieved June 20, 2008, from Academic Search Premier database.

Deception in advertising is the practice of product advertising that removes the ability for the consumer to make a rational choice. The key to determining deception is that the interference with choice must be substantial. In other words, if advertising makes claims that are easy to disprove, then the interference is not substantial. Additionally, if the advertising affects an important aspect of consumers’ lives, then the advertising must adhere to higher standards of credibility. As Boatright (2007) points out, it is more important to avoid the generation of false beliefs in advertising for life insurance than chewing gum (p. 275). The main problem with deceptive advertising is catching it.

In 1997, Microsoft released version 4 of its Internet Explorer web browser. Shortly after release, Microsoft issued a press release that claimed there had been one million downloads in the first two days of availability. At the time, Microsoft was waging a virtual war with Netscape for control of the web browser market. The sudden popularity of Microsoft’s latest web browser would surely create a public buzz about the product and attract more interest. Unfortunately, in 1999 Microsoft claimed that downloads of Internet Explorer 5 had set a new adoption record of one million downloads in five days. When confronted with the disparity, Microsoft admitted that the Internet Explorer 4 numbers from 1997 included other parts of the Internet Explorer product. In truth, no where near one million downloads had actually occurred (Gillmor, 1999). Although this act of deception by Microsoft was not enough to warrant an investigation by the Federal Trade Commission (FTC), it does illustrate the relative ease with which advertisers can deceive consumers.

Boatright, J. (2007). Ethics and the conduct of business, 5th ed. Upper Saddle River, NJ: Pearson.

Gillmor, D. (1999, June). MC: Technology Marketing Intelligence, Retrieved June 16, 2008, from Computer Source database.

The principle of comparable worth tries to define the way wages should be determined. It states that a system can be devised to compare jobs based on the content of their work, even if the jobs are very different. The effect of the market on employee pay is not disregarded, but advocates of this principle believe that the final determining factor in regards to compensation should be job content. To this end, job evaluations are performed and a point system is used to rank each job. Based on this point system, jobs with similar scores should be paid equivalently (Boatright, 2007).

Naturally, this principle is not without controversy. One version of the principle believes that market value should be completely ignored when making compensation decisions. The concern is that the market may have a tendency to undervalue the work performed. The wages of teachers is an example of this. Although this job is generally perceived as noble or morally responsible, teachers receive far less compensation considering the skill and education required. This version of the principle attempts to free wage discussions from the morally questionable foundation of the market system (Boatright, 2007).

The second version of the principle of comparable worth believes that the free market does a fine job of setting wages. Unfortunately, discrimination interrupts the operation of the market on wages. Therefore, some workers are not able to earn what they would be able to earn if there was no discrimination. This version of the principle is best viewed as a tool to find and remove discrimination in the market (Boatright, 2007).

The second version of this principle is the least controversial. The concept of evaluating jobs based on their content is a useful tool, but in the end, employees should be paid for their worth. Robert Buchele and Mark Aldrich (1985) applied a complicated job evaluation algorithm to determine the content of various jobs dominated by one gender or the other. Not surprisingly their research discovered that women in 1978 earned about 60 percent of what men earned that year (Buchele & Aldrich, 1985). This data almost exactly matches the information gathered by the U.S. Bureau of Labor Statistics (2007) in 2006.

One major failing of the first version of comparable worth is the idea that jobs of equivalent content should earn equivalent pay. Boatright (2007) uses the example of a painter and a secretary having comparable scores in a job evaluation. On general principle, these jobs might deserve to earn similar pay. But the job evaluations fail to take into consideration the business these employees work for. For example, if the company in question is in the business of painting houses, the painters deserve greater pay since they are the “product.” Similarly, a secretary working for a company that provides secretarial services for Fortune 500 companies deserves higher compensation than the person that keeps the walls painted.

The real value in the principle of comparable worth is rooting out discrimination. Using evidence like the work presented by Buchele and Aldrich (1985), it is obvious that jobs held predominantly by women earn considerably less than those held by men. The chance that this is merely coincidence is preposterous. As Boatright (2007) concludes, “insofar as the wage gap is due to discrimination, it ought to be eliminated” (p. 225).

Boatright, J. (2007). Ethics and the conduct of business, 5th ed. Upper Saddle River, NJ: Pearson.

Buchele, R., & Aldrich, M. (1985, Spring85). How much different would comparable worth make?. Industrial Relations, 24(2). Retrieved June 12, 2008, from Business Source Elite database.

Nyren, K. (1985, September 15). Comparable worth laid low by equal opp. agencies. Library Journal, 110(15), 28. Retrieved June 12, 2008, from Academic Search Premier database.

U.S. Bureau of Labor Statistics. (2007, September). Highlights of women’s earnings in 2006. Retrieved June 12, 2008, from http://www.bls.gov/cps/cpswom2006.pdf.

A study done in the UK revealed that nearly 25% of respondents felt they had been the victim of some sort of discrimination. Surprisingly, the number one form of discrimination found in this study was ageism. This was followed by discrimination against people with disabilities, other national origins (i.e., race or ethnicity), and finally gender (Bentley, 2003). One form of discrimination not discussed in this study was religious discrimination, although this form of discrimination is often linked with national origin (Boatright, 2007).

So many different forms of discrimination can be overwhelming. To confuse the issue, many of types of discrimination can overlap. For example, discrimination based on national origin can involve race and religion. An individual may fall into one or many of these categories. It is important for businesses to have all these forms in mind when designing hiring and promoting practices. If personnel decisions are not based fairly on subjective evaluation, the business may open itself to a discrimination lawsuit. The difficulty of maintaining unbiased personnel practices has lead to the adoption of affirmative action (Boatright, 2007).

Affirmative action programs first began appearing in the 1970s. These programs are based on the idea that simply ending discriminatory personnel practices are not enough to counteract the effects of previous discrimination. Therefore, more active steps are taken to ensure a balanced workforce. For example, when the Kaiser Aluminum Company realized that there were few qualified black craft workers because of prior discrimination, it devised a plan to develop a training program in-house. This affirmative action program raised the percentage of skilled black craft works from 2% to 39%; a percentage equivalent to the proportion of all black workers in the area (Boatright, 2007).

Bentley, R. (2003, October 21). One in four hit by prejudice at work. Computer Weekly. Retrieved June 8, 2008, from Computer Source database.

Boatright, J. (2007). Ethics and the conduct of business, 5th ed. Upper Saddle River, NJ: Pearson.