Question

After DCH was found guilty, the court ordered that the company’s assets be liquidated and the proceeds be distributed to depositors. However, the court did not specify how the proceeds should be distributed.

- Adam thought that it would be fairest if the proceeds were distributed to depositors based on the amount of money deposited. The largest depositors should receive the greatest amount of the proceeds.

- Beth thought that it would be fairest if the proceeds were distributed to depositors based on the age of the deposits. The earliest depositors should receive the greatest amount of the proceeds

- Charlie thought that it would be fairest if the proceeds were distributed to depositors equally. Each depositor should receive an equal amount of the proceeds.

- Deb thought that it would be fairest if the proceeds were distributed to depositors based on each depositor’s needs. The neediest depositors should receive the greatest amount of the proceeds.

- Ernie thought that it would be fairest if the proceeds were distributed to depositors based on whether the depositor is an individual depositor or institutional depositor. Individual depositors should receive more than institutional depositors.

Whose distributive justice ethic best represents a communist sense of fairness?

		a. Beth
		b. Charlie
		c. Ernie
		d. Adam
		e. Deb

QUESTION 19

Whose distributive justice ethic best represents an egalitarian sense of fairness?

	a.	Deb
	b.	Ernie
	c.	Beth
	d.	Charlie
	e.	Adam

QUESTION 20

Whose distributive justice ethic best represents a capitalist sense of fairness?

		a. Charlie
		b. Beth
		c. Deb
		d. Ernie
		e. Adam

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Mary is a new human resources specialist for Ajax Corp. Ajax is a privately owned, third-generation family business based in Kabukistan. Mary was hired to handle the human resources functions for the company’s growing United States division which employs 500 employees. Last week, when analyzing the division’s payroll, she learned that 92 percent of the women who worked for the company in the US were compensated less than male employees who were in similar jobs. When she contacted Ajax’s HR department at company headquarters in Kabukistan, she was told that the company strove for fair compensation practices. Ajax often paid higher wages to men than women because Ajax’s male employees typically were the sole wage earner in their family and Ajax’s female employees were typically either single or their husbands also earned an income. Mary wondered whether this practice might hurt the company’s sales in the US if potential customers learned of this compensation practice. Moreover, although she believes that the compensation practice is okay in Kabukistan, Mary believes that the practice is unethical in the US. Bothered by the compensation practice, Mary spoke with her husband. He told Mary that he thought the practice is illegal in the US and advised her to speak with a member of the US Equal Employment Opportunity Commission. Moreover, he stated that he believed such a practice was wrong and should not be allowed in the US, Kabukistan, or anywhere.

The Ajax headquarters human resources representative believes that the company’s compensation practice is fair. This sense of fairness is based on the idea that:

a.		women are less capable than men
b.		individuals should be compensated based on their needs
c.		companies have the right to decide how they wish to compensate employees
d.		individuals should be compensated in proportion to the amount that they contribute
e.		individuals should be given equal opportunity to be compensated

QUESTION 7

Mary’s concern for the US division’s sales reflects her belief that if knowledge about the compensation practice becomes public, many people would view it as unethical, which would __________. This would, in turn, lead to lower division performance.

	a.	adversely affect the company's reputation
	b.	lower payroll costs
	c.	lead to a gender imbalance among the employees
	d.	cause many of the division’s employees to quit
	e.	lead to employee dissatisfaction

Answer 1

Whose distributive justice ethic best represents a communist sense of fairness?

Answer: e. Deb

Communist distributive justice is when each person contributes according to his or her capability and is rewarded based on the need.

19. Whose distributive justice ethic best represents an egalitarian sense of fairness?

Answer: d. Charlie

Egalitarian distributive justice is when everyone is treated equally and the resources are allocated to all the people equally.

20. Whose distributive justice ethic best represents a capitalist sense of fairness?

Answer: d. Ernie

Capitalist distributive justice emphasizes individual rights.

The Ajax headquarters human resources representative believes that the company’s compensation practice is fair. This sense of fairness is based on the idea that:

Answer: b. individuals should be compensated based on their needs

Ajax often paid higher wages to men than women because Ajax’s male employees typically were the sole wage earner in their family and Ajax’s female employees were typically either single or their husbands also earned an income. This means Ajax Corp. believes that families of male employees are in need of higher income because they are the sole wage earners in their family. Since the husbands of female employees also earned an income, they would have sufficient money, and therefore, they have a lesser need for high income.

QUESTION 7: Mary’s concern for the US division’s sales reflects her belief that if knowledge about the compensation practice becomes public, many people would view it as unethical, which would __________. This would, in turn, lead to lower division performance.

Answer: a. adversely affect the company's reputation

If this unethical practice is known to the public, they would form a bad reputation of the company and would not prefer purchasing from them. This would affect the sales of the company and, in turn, lead to lower division performance.