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Paul L.

Schumann MGMT 482/582 Business, Society, & Ethics Case #1 Philip Morris Troubles Read the case: Velas ue! "2##2$, %Phili& Mo''is( T'ou)les,* &&. +5,-+,.. Update: /n 0anua'y 21, 2##., Phili& Mo''is 2om&anies 3nc. chan4e5 its name to 6lt'ia G'ou&, 3nc. 6lt'ia G'ou& is the name o7 the &a'ent com&any o7 8'a7t 9oo5s, Phili& Mo''is :S6, Phili& Mo''is 3nte'national, an5 Phili& Mo''is 2a&ital 2o'&o'ation. 6t the time o7 the chan4e, the Phili& Mo''is ;e)site "htt&<//;;;.&hili&mo''is.com$ e=&laine5 that %/u' name chan4e to 6lt'ia G'ou&, 3nc., 'e7lects the 7act that ;e a'e no lon4e' the same com&any ;e once ;e'e st'uctu'ally, cultu'ally o' )eha>io'ally. This chan4e )ette' 'e7lects ;ho ;e a'e to5ay an5 ;ho ;e ;ant to )e in the 7utu'e. 3t ;ill 7ocus attention on the ualities ;e ;ant to con>ey such as su&e'io' &e'7o'mance, 7inancial st'en4th an5 a commitment to inte4'ity an5 co'&o'ate 'es&onsi)ility.* 9o' mo'e in7o'mation, see htt&<//;;;.alt'ia.com. Questions "Be &'e&a'e5 to 5iscuss these uestions in class$< +. Ethical Issues: ?hat a'e the ethical issues in the Philip Morris Troubles case@ 2. Ethical Analysis: 6mon4 the alle4ations 5esc'i)e5 in the case is that Phili& Mo''is Ane; that ci4a'ettes ha5 si4ni7icant health 'isAs, )ut &u)licly 5enie5 "5es&ite the ;a'nin4 on each &acA o7 ci4a'ettes$ that the'e ;as a linA )et;een smoAin4 ci4a'ettes an5 health 'isAs. Su&&ose a com&any liAe Phili& Mo''is Ano;s that thei' &'o5uct has si4ni7icant health 'isAs 7o' consume's, )ut 'e&eate5ly 5enies to the &u)lic that the 'isAs e=ist. 6. 3s it ethical acco'5in4 to the :tilita'ian P'inci&le@ E=&lain. B. 3s it ethical acco'5in4 to the Bi4hts P'inci&le@ E=&lain. 2. 3s it ethical acco'5in4 to the Cist'i)uti>e 0ustice P'inci&le@ E=&lain. C. 3s it ethical acco'5in4 to the Ethics o7 2a'e P'inci&le@ E=&lain. E. 3s it ethical acco'5in4 to the Vi'tue Ethics P'inci&le@ E=&lain. 9. Co the 5 mo'al &'inci&les 'each the same conclusion, o' 5o they 'each con7lictin4 conclusions@ 37 they 'each con7lictin4 conclusions, ho; can ;e 'each a 7inal, o>e'all conclusion@

.. Moral Responsibility: 6. 37 a com&any liAe Phili& Mo''is Ano;s that thei' &'o5uct has si4ni7icant health 'isAs 7o' consume's, )ut 'e&eate5ly 5enies to the &u)lic that the 'isA e=ists, ;ho shoul5 )e hel5 mo'ally 'es&onsi)le< Dust the e=ecuti>es in>ol>e5 in 5i'ectin4 the 5enials, o' Dust the com&any as a ;hole, o' )oth the e=ecuti>es in>ol>e5 an5 the com&any as a ;hole@ ?hy@ B. ?hat a'e the t;o main 'easons 7o' 'e5ucin4 o' e>en eliminatin4 mo'al 'es&onsi)ility 7o' unethical actions@ 37 a com&any liAe Phili& Mo''is Ano;s that thei' &'o5uct has si4ni7icant health 'isAs 7o' consume's, )ut 'e&eate5ly 5enies to the &u)lic that the 'isA e=ists, shoul5 mo'al 'es&onsi)ility )e 'e5uce5 o' eliminate5@ E=&lain.

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