Business Ethics Essay Assignment
“Business Ethics Scenarios” below. Read the scenario carefully and then write a one-to-two-page essay (double-spaced) in which you answer the questions asked at the scenario’s end.
In your essay, refer to specific details in the scenario to show your understanding of the issues involved. Argue for the best course of action, but also argue why any alternative choices would not be as good, or as appropriate.
In your answer, also explain your reasoning by applying any two of the ethical guidelines found by clicking on any of the Professional Code of Ethics websites found on your Canvas “Modules” page under “Business Ethics Essay Assignment.” (Or, choose your own from the Internet as long as it is a Code of Ethics from a legitimate professional website in a recognized business field).
1. Financial Advice
Many clients will base their financial decisions on emotion rather than reason. Suppose a 65-year-old woman has her entire savings of $100,000 in a very low-interest savings account because she is terrified of risking her principal. If she lives for another 20 years, her savings will likely be depleted long before she dies, (because these low-risk investments pay a tiny rate of return that will be offset by inflation over time.)
As her financial adviser, you obviously need to get your client to diversify her holdings with a sensible asset allocation. But how far should you go in encouraging her to do this? If reasoning won’t motivate her but a healthy fear of what the future will bring might persuade her, shouldn’t you appeal to her this way? Might it be OK for you to use fear-based sales tactics, even exaggerating the truth a little in order to help this client? After all, it clearly is in her best interest to diversify. Besides, your company pays you to put clients into the investments it recommends, and if no action is taken, this woman might want to hold you liable for failure to provide sound advice when her savings is depleted.
What should you do? Why? Explain and argue for your reasoning using two or more of the ethical guidelines in the assignment module.
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