RESOLVING ETHICAL BUSINESS CHALLENGESMary a recent college graduate from Stanford Universityworks for JSYK Incorporated, a realty company that mresents clients interested in either buying or selling butesses. As a "business beoker, Mary's job is to arrangesales just like a normal realtor. On the outskirts of towna small building used for manufacturing sat idle for evera year. The realtors called it Moby Dick because nocould find a buyer for it, either the price was too highor the building did not quite match the buyer's needsDozens of potential buyers had come and gone. It didnot help that the building was owned by Ted St. Clair,65-year-old miser that lived in the town all his life. Theman had a reputation for hoarding every last dime. Tedmade Dickens's Scrooge look saintly. While ISYK Incorporated told Ted more than once he needed to lower theprice if he wanted to sell the building, Ted always refusedOne hot afternoon Reverend Smith, a retired minister, contacted ISYK and asked if he could look at theproperty. Because Mary was in the office it was givento her. While they inspected the building, the conver-sation came around to what Reverend Smith would dowith the building. He had recently formed anoopcorporation to aid troubled youth and wanted to convertthe building into a recreation center. Mary knew Reverend Smith because she formerly attended his church. Sheknew of his honesty and integrity as well as his decadesof service.When Mary returned to the office, the Reverendwas seriously talking about the building and how itit couldbe refitted for his purposes. As they talked, the Reverendasked about the machinery still in the building. Some ofthe machines at the manufacturing plant were in poorcondition and required an estimated $100,000 to repairReverend Smith had no use for them and would needthem removed.After preliminary discussions, Mary said she wouldcontact the owner. "Reverend, I believe the seller is asking for a $250,000 down payment on this $1,000,000sale."I can't afford that much," replied the Reverend."I've been sering donations for a number of years and 1only have $150,000."IFI may ask" asked Mary. "How are you going topay the balance?"Well, I've spoken to some older church members,and they told me that if I could make the down paymentthey would cover the rest."Extra Questions:Tey to work with you on this. Give me a few daysand call you" said MaryAs Reverend Smith left. George, the owner andCEO of SYK, came into the office. "What did ReverendSmith want?" asked George."He's actually interested in Moby Dick, and I believeit matches his needs perfectly"That's great!" George replied. Then he noticedMary's face. So what's the problem?You and I both know Ted will not come down onthe price Mary quickly explained the situation, withGeorge listening intently. After she was done, Georgesaid, "Mary, this is what you are going to do. I want youto convince Ted that repairing those machines is important to the buyer. DO NOT tell him who it is. Tell Tedthe buyer wants the machines, but the repair estimatehe calculated is $150,000. Tell Ted you know you can getthe buyer to buy if the down payment was reduced to$150,000 and the asking price to $950,000. Finally, tellTed he would be making an additional $50,000 for nothaving to do the repairsI don't know about this," said Mary. "It doesn't feelhonest, and besides Reverend Smith has not approvedthe deal, nor do I believe he would want me to lie on hisbehalfGeorge replied, "Mary, the Reverend is going to dosomething good with that building. You and I both knowTed will never get more than this. We're just helping himmake the best deal possible"Mary still was not certain. Although Ted was aminer, it did not feel right to lie. Besides, she wonderedwhat Ted would do after he found out the Reverend hadso use for the machines.QUESTIONS EXERCISES1. How is top management supporting a culture of ethical or unethical behavior?2. Discuss the alternatives and duties Mary has as a representative for both the buyer and seller.3. Ifteahors have a code of ethics that requires truthfand transparent information, what should Mary teGeorge, the owner of ISKY?This camily bypothetical, amy resemblance to real persocompanies, or sation is indental1. Explain the case study?2.What are the ethical issues involved in this case?3. What are the effects of this issue?4. What are the solutions for this issue?5. What is your opinion about this case?

Business ethics relates to the morals or principles that act as guidelines for the ways businesses…

range Mary, a recent college graduate from Stanford University works for YK Incorporated, a realty company that p resents clients interested in either buying or selling but nesses. As a business beoker" Mary's job i sales just like a normal realtor. On the outskirts of town a small building used for manufacturing s ide for ever a year. The realtors called it Moby Dick because no ne could find a buyer for it, either the price was too high of the building did not quite match the buyer's needs. Dozens of potential buyers had come and gone. It did not help that the building was owned by Ted St. Claia 65-year-old miser that lived in the town all his life. The man had a reputation for hoarding every last dime. Ted made Dickens's Scrooge look saintly. While ISYK Incre ported told Ted more than once he needed to lower the price if he wanted to all the building, Ted always refused One hot afternoon Reverend Smith, a retired min ister, contacted ISYK and asked if he could look at the property. Because Mary was in the office it was given to her. While they inspected the building, the comer sation came around to what Reverend Smith would de with the building. He had recently formed a nonpendi corporation to aid troubled youth and wanted to convert the building into a recreation center Mary knew Rever end Smith because she formerly attended his church, She knew of his honesty and integrity as well as his decades of service. When Mary returned to the office, the Reverend was seriously talking about the building and how it could be refitted for his purposes. As they talked, the Revend asked about the machinery still in the building Some of the machines at the manufacturing plant were in poor condition and required an estimated $100,000 to repair Reverend Smith had no use for them and would need them removed. After preliminary discussions, Mary said she would contact the owner. "Reverend, I believe the seller is ak ng for a $250,000 down payment on this $1,000,000 sale. "I can't afford that much," replied the Reverend I've been sering donations for a number of years and 1 only have $150,000 "If I may ask" asked Mary. "How are you going to pay the balancel" "Well, I've spoken to some older church members, and they told me that if I could make the down payment, hey would cover the rest Tsy to work and call you" said Mary As Reverend Smith left. George, the owner and CEO of BYK, came into the office. "What did Reverend Smith was asked George Hesactually interested in Moby Dick, and I belie manches his needs perfectly "That's great George replied. Then he noticed Mary's face. So what's the problem! You and I both know Ted will not come down on the price Mary quickly explained the situation, with George listening intently. After she was done, George said Mary, this is what you are going to do. I want you so convince Ted that repairing those machines is impor tant to the buyer. DO NOT tell him who it is. Tell Ted the buyer wants the machines, but the repair estimate he calculated is $150.000. Tell Ted you know you can get the buyer to buy if the down payment was reduced to $150,000 and the asking price to $950,000. Finally, tell Ted he would be making an additional $50,000 for not having to do the repairs I don't know about this," said Mary. "It doesn't feel honest, and besides Reverend Smith has not approved the deal, nor do I believe he would want me to lie on his behall George replied, "Mary, the Reverend is going to dom something good with that building. You and I both know Ted v Ted will never get more than this. We're just helping him make the best deal possible" Mary still was not certain. Although Ted was a mine, it did not feel right to lie. Besides, she wondered what Ted would do after he found out the Reverend had so use for the machines QUESTIONS EXERCISES 1. How is top management supporting a culture of ethi cal or unethical behavior? 2. Discuss the alternatives and duties Mary has as a rep sentative for both the buyer and seller. hors have a code of ethics that requires truthfe and transparent information, what should Mary t George, the owner of SKY? 3. The y poetical y resemblance to al perse