Describe the factors associated with the

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8. Describe the factors associated with the entrepreneurial ego. 9. Ethics must be based more on a process than on a static code. What does this statement mean? Do you agree? Why or why not? 10. A small pharmaceutical firm has just received permission from the Food and Drug Administration (FDA) to market its new anticholesterol drug. Although the product has been tested for five years, management believes that serious side effects may still result from its use, and a warning to this effect is being printed on the label. If the company markets this FDA- approved drug, how would you describe its actions from an ethical and legal standpoint? Use Figure 2.2 to help you. There is nothing illegal about marketing the product, because all necessary actions were taken to get the drug approved by the FDA and the benefits must have outweighed the side effects. On the other side, however, marketing the product may not be unethical, because the company is providing information concerning the side effects on the product for the consumer, and therefore, the consumer must make the choice. Management may continue to put more money into the research and development of the product. 11. Explain the four distinct roles managers may take in rationalizing morally questionable acts “against the firm” or “on behalf of the firm.” Be complete in your answer. The four distinct roles are non-role, role failure, role distortion, and role assertion. There are two roles that apply to questionable acts “against the firm.” Non-role examples would include: embezzlement and stealing supplies. Role failure includes superficial performance appraisals and not confronting expense account cheating by employees. There are two distinct roles that apply “on behalf of the firm.” Role distortion includes bribery or price fixing. Role assertion refers to socially questionable acts such as not withdrawing a product in the face of product safety allegations.

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