Individual Business Ethics Case Analysis
[Women and Health Insurance]
MASTER OF BUSINESS ADMINISTATION 740: Legal & Honest Issues running a business
Professor: Dr . Joseph A. Petrick
1 ) Who are the stakeholders included and how severely are they affected? Who is hurt and by simply how much? a. Market Stakeholders: (1) Women: They are forced to spend higher rates, then men (high impact); (2) Men: will be in a negative way affected by the interest rate because it will be subsidized in the event the women's prices go down (high impact); (3) Insurance company: will be participating in a discriminatory work by recharging men fewer for insurance than they are charging females. (high impact); (4) Different Employers: happen to be influenced mainly because employee-subsidized insurance plans offer every employees same benefit plan (medium impact); (5) Owners/Investors: are making more revenue simply by charging the ladies more than they can be charging the boys so they may be making more income than they need to (medium impact); (6) Consumer: treatment to women could cause a case and it is likely to cause lost long term business and bad word-of-mouth publicity (high impact);
b. nonmarket Stakeholders: (1) Governments: conceivable fraud appealing local, condition and/or authorities regulation (medium impact); (2) Communities: community members become victimized and/or vulnerable to fraudulent sales tactics by a regional business (medium impact); (4) Media: will likely not report an individual episode until there are a wide range of women that go to the press or protest about the unfair prices that they are obtaining from the business (low impact); (6) Public: erodes rely upon insurance companies to manage them as much as their overall health in general (medium impact).
installment payments on your What are the central ethical issue(s) plus the relevant specifics in this case? a. Central Moral Issue(s): (1) charging girls more intended for insurance is definitely discriminatory; (2) Even if they will decline expectant mothers coverage they will still get charged an increased rate.; (3) risking loss in women totally, company popularity for ethics and long term business which could cause the to loose profit
m. Relevant Information: (1) Regardless if women decline maternity protection they nonetheless get recharged a high price; (2) the wage distance increases inside the insurance marketplace, and endangered the loss of standing and foreseeable future business for company; (3) the insurance business charges girls more pertaining to health insurance than men
three or more. RESULTS: To what extent carry out (should) the results in the action develop more benefits than costs to stakeholders in the short and long range? (Current: 1/Desired: 6) This situatio demonstrates incredibly unacceptable under-emphasis upon great long-term moral results.
a. The insurance businesses are charging females more intended for health insurance in comparison to men. The profit that the gain from recharging women is far more than it might be if they charged all of them the same selling price as guys. Insurance companies believe that women use health insurance more than men, just like getting checkups, and screenings and women would be the only market that can have got children. There is a wage gap increases since women have to shell out a higher insurance premium.
b. Insurance agencies have a short term price but if the govt makes alterations that will pressure companies to charge men and women the same price then you will see a long term expense to the business later over time.
4. RULES: To what degree do (should) the rules adopted to achieve results respect the rights more and comply with standards of justice and fairness? Are appropriate duties and obligations happy and effectively prioritized? (Current: 1/Desired: 6) This case illustrates extremely unacceptable under-emphasis after following the correct moral rules.
a. Rights: charging ladies more is wrong. They should be treated fairly and women must have equal prices as guys. It triggers discrimination also it would make a women scenario worse because they are paid significantly less in pay and...