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Question #1: Class, please read Chapter 2, Problem 5 from the Jennings text, p. 72. This week, we will discuss the Wolfowitz situation at the World

Please help question #2, answer to question 1, provides needed info to help question 2. see attachment
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Question #1: Class, please read Chapter 2, Problem 5 from the Jennings text, p. 72. This week, we will discuss the Wolfowitz situation at the World Bank. Consider the questions at the end of the problem as you make comments in the threads this week. What are the ethical issues here? Was Wolfowitz trying to do the right thing? Does that make a difference ethically? Throughout the week, I will bring in further questions. Be sure to read the lecture and the International Ethics article stated in your reading for the week as well The ethical issues existing with Wolfowitz’s relationship with Riza are: Perpetrating Interpersonal Abuse, Committing Acts of Personal Decadence, and Engaging in Conflict of Interest. Perpetrating Interpersonal Abuse became an ethical issue as soon as Wolfowitz involved himself with someone else in the workplace romantically. Because Wolfowitz is the President of the bank and dating his employee Riza, his treatment towards her at the workplace is unfair to all the other staff at the bank; exemplified through Wolfowitz’s letter to Xavier Coll stipulating and mandating the obligation to seek employment for her, even after he was no longer heading the bank. Committing Acts of Personal Decadence is an ethical issue in this situation because Wolfowitz ‘s decision to engage in a relationship with an employee has given colleagues of Riza at World Bank reason to think that this type of behavior is acceptable. Though it may not happen immediately, this type of relationship can lead to a potential domino effect and disgruntled employees. Riza’s colleagues may also now be prone to not make good decision in future ethical dilemmas rationalizing “that’s the way it has always been done” and “the system is unfair”. Wolfowitz’s relationship with Riza is a conflict of interest because of Wolfowitz’s position at the company. Wolfowitz’s job as acting president of the company has a responsibility to his company and all the employees to exemplify a leadership’s role in ethical choices . Though Wolfowitz can claim his relationship with Riza would “never allow that to influence his decisions”, when Wolfowitz went to the board addressing his relationship with her, the board suggested relocation because she could no longer be promoted at the bank. Whether Wolfowitz’s relationship causes “influence is not the issue”, rather the “possibility exists, and it creates suspicion” to Riza’s position at World Bank. It appears as if Wolfowitz was trying to do the right thing by addressing the board with his current relationship status; however, as President of World Bank, being involved with an employee has too many underlying ethical issues. Had Wolfowitz used all four (4) resolution models prior to engaging in a relationship with Riza, he would have realized the consequences of having a relationship with her. Ethically, Wolfowitz’s intentions can be viewed as acceptable; however, ones actions speak much louder than words, and Wolfowitz’s actions are perceived as unethical as exemplified with the board’s decision to relocate Riza to elsewhere beyond Wolfowitz’s influence. Question #2: Let's consider the situation in which Wolfowitz has found himself. He went to the Board and disclosed the relationship and his plan to hire Riza, who was eminently qualified for the position. The Board did little to thwart his decision regarding the hiring. Nonetheless, do ethical guidelines require us to avoid even the appearance of impropriety? Sort of the "where there is smoke there is fire" analysis? Must we assure that our businesses and business leaders are both
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ethical and avoid even the appearance of unethical behavior? If yes, how do we draw standards from which we can determine the bounds of both ethical behavior and the appearance of improper behavior? As you are considering this, think about the number of cultural differences that exist across countries, which make it more difficult to set ethical boundaries. So, for example, some argue that the US is unethical in its failure to assure the availability of health care to all citizens and a relatively equal basis. Yet, our culture suggests, for many, that this is improper and that individuals must deal with their own health care needs and issues. How do we determine and draw boundaries for ethical behavior in a global economic world that has so many different views of what is or is not ethical? "
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