Identify ethical issues that arise in domestic and global business environments using an understanding of ethical concepts and of legal and business principles.

Project 1:  News Event

APA 7^th edition, Plain language, I’m a black woman

Purpose:  In the first assignment, you have
the opportunity to see how ethics can play out in a real-world scenario. You
will read the case scenario and answers the questions in a narrative format.
Use headings for each question. Headings are not the question. You are required
to use the course material to support your reasoning and the conclusions
made. 

Learning outcome met by completing this project:

Identify ethical issues that arise in domestic and global
business environments using an understanding of ethical concepts and of legal
and business principles.

Case Scenario:

The outbreak of the COVID-19 pandemic required Americans to
shelter in place thus causing the U.S. economy to freeze-up, resulting in
millions of lost jobs. The U.S. Congress passed legislation to try and limit
the economic damage. Included in the legislation was a stimulus package that
would give $1,200 to single tax filers making $75,000 or less and $2,400 to
married couples making $150,000 or less. The purpose of the payment was to give
people emergency funds and to stimulate the economy.  Also included was
the CARES Act that provided the Paycheck Protection Program (PPP). The PPP was
a program administered by the Small Business Administration that was targeted
at small businesses.  It provided for a government loan that was
forgivable if used to pay employees’ salaries and benefits, mortgages, rent,
and utilities. According to the SBA website, “[t]he Paycheck Protection
Program is a loan designed to provide a direct incentive for small businesses
to keep their workers on the payroll.”

USAA is a member-owned organization that provided insurance
and financial services exclusively to current and former members of the
military as well as their family members.  USAA has an excellent
reputation as a well-run organization and for giving its members good service.
Many USAA members maintain checking accounts with it. Some of those members who
have checking accounts had overdrawn their balances and had a negative balance
in their accounts. When the $1,200 or $2,400 stimulus check was deposited, USAA
used those amounts to offset the negative balances in some of its members’
accounts. Members were not informed in advance that this would be the case.
This resulted in some USAA members not having any access to the stimulus money.
The action USAA took in crediting the funds to existing account deficits was
perfectly legal.

Shake Shack is a corporation that owns and licenses
restaurants selling traditional American fare like hamburgers and milk shakes.
It currently operates 124 locations in the U.S. and overseas. As of May 4,
2020, the company had a market capitalization of $2.06 billion. The company is
publicly traded on the New York Stock Exchange. In 2019, Shake Shack’s CEO
received $2.3 million in compensation. Shake Shack applied for and received a
loan of $10 million under PPP.  The loan was permissible under a provision
in PPP that allows restaurant chains to apply when each location has fewer than
500 employees. Shortly after Shake Shack received the loan, the PPP ran out of
funds and many small businesses did not receive loans.

Small Business Administration. (2020) Retrieved from https://www.sba.gov/funding–programs/loans/coronavirus-relief-options/paycheck-protection-program

How to Set Up the Paper

Create a Word or Rich Text Format (RTF) document that is
double-spaced, 12-point font.  The final product will be
between 5-8 pages in length excluding the title page and
reference page.  Write clearly and concisely.

Create a title page with a title, the course number and
section, the instructor’s name and your name. 

Title Page

• Title of the paper
• Course number and title: 
• Instructor’s name: 
• Your name: 
• Date

Instructions:

Course Material

For this project, you are required to use only the case
scenario facts and the course material. What actually happened is not to
be considered.  External sources are not permitted. You
are not researching on the Internet or using resources from outside the course.
You are expected to answer the requirements identified below showing the
connection between the case scenario facts and the course material. Using
course material goes beyond defining terms and are used to explain the ‘why and
how’ of a situation. Avoid merely making statements but close the loop of the
discussion by explaining how something happens or why something
happens, which focuses on importance and impact.  In closing the loop,
you will demonstrate the ability to think clearly and rationally showing an
understanding of the logical connections between the ideas presented in a case
scenario, the course material and the question(s) being asked. Using one or two
in-text citations from the course material throughout the entire paper will not
earn many points on an assignment. The use of a variety of course material is
expected consistently supporting what is presented. The support must be
relevant and applicable to the topic being discussed. Points are not earned for
mentioning a term or concept but by clearly and thoroughly explaining or
discussing the question at hand.

NOTE: If external sources are used, what is
presented will not count and a penalty for not following instructions will
apply.

Project Requirements

Introduction

• Write
  an Introduction paragraph. The Introduction paragraph is the
  first paragraph of the paper and will be used to describe to the reader
  the intent of the paper explaining the main points covered in the paper.
  This intent should be understood prior to reading the remainder of the
  paper so the reader knows exactly what is being covered in the paper.
• Consider
  writing the introduction last to ensure that all of the main points are
  covered.

 Ethical Issue(s)

•  Identify
  and discuss the ethical issue(s) related to USAA and Shake Shack.

 Stakeholders Implications

• Identify
  the stakeholders involved in the actions of both companies.
• Discuss
  the potential implications of the company’s actions on each stakeholder or
  stakeholder group. Give examples.

Utilitarianism Viewpoint

• Explain
  how a utilitarian would view USAA and Shake Shack’s actions.

Rights and Duties Viewpoint

• Explain
  how the actions of both USAA and Shake Shack would be viewed under the
  theory of Rights and Duties.

Fairness and Justice Viewpoint

• Explain
  how the actions of both USAA and Shake Shack would be viewed under the
  theory of Fairness and Justice

Recommended Actions

• Regardless
  of what these companies actually did, recommend the actions that you think
  they ethically should take going forward.  This is not about what
  they should have done in the past, but rather speak to actions they should
  take now having done what they did.   There is no right or wrong
  action, but rather it is about supporting the actions you choose from your
  ethical arguments.

 Conclusion

• Write
  a concluding paragraph that is brief and summarizes the main points.
  Provide specific information related to the major topics discussed in the
  paper. 

Review the Paper 

Read the paper to ensure all required elements are present.

The following are specific requirements that you will
follow. Use the checklist to mark off that you have followed each specific
requirement.  

Checklist