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?

Question

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 &#34;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. &#34;Reverend, I believe the seller is asking for a $250,000 down payment on this $1,000,000sale.&#34;I can't afford that much,&#34; replied the Reverend.&#34;I've been sering donations for a number of years and 1only have $150,000.&#34;IFI may ask&#34; asked Mary. &#34;How are you going topay the balance?&#34;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.&#34;Extra Questions:Tey to work with you on this. Give me a few daysand call you&#34; said MaryAs Reverend Smith left. George, the owner andCEO of SYK, came into the office. &#34;What did ReverendSmith want?&#34; asked George.&#34;He's actually interested in Moby Dick, and I believeit matches his needs perfectly&#34;That's great!&#34; 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, &#34;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,&#34; said Mary. &#34;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, &#34;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&#34;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?

Accepted Answer

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