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Resolving Ethical Business Challenges i

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Read a scenario Resolving Ethical Business Challenges in the text on page 177 and then answer the discussion questions below. I am looking forward to some great discussions! 1. Describe Saul’s ethical dilemma?

Saul is facing two types of ethical challenges: an ethical dilemma and an ethical decision. An ethical dilemma is a morally problematic situation in which you must choose between two or more alternatives that aren’t equally acceptable. The dilemma is characterized as a “right-versus-right” decision. Ethical decision entails a “right-versus-wrong” decision in which an individual is faced with one a right (ethical) choice and a wrong (unethical or downright illegal) choice (Collins, 2008). Saul’s dilemma is dealing with the ethical challenge that is currently facing. 2. Why would Medicare fraud be a white-collar crime?

White collar crime refers to those offenses that are designed to produce financial gain using some form of deception. This type of crime is usually committed by people in the business world who, as a result of their job position, are able to gain access to large amounts of other people’s money. White collar crime does not involve violent, drug-related, or overtly illegal activities, they typically involve lawful businesses and may individuals hold respectable positions in the community prior to the discovery of their fraudulent schemes. White collar crimes are investigated by the Federal Bureau of Investigations in which they have jurisdiction over both federal and private insurance programs. Once identified using coordinating efforts through various federal, state, and local agencies, white collar crimes are prosecuted by The United States District Attorney’s office. Medicare Fraud is considered a crime against the United States government and stealing of government money FBI.gov 2010).

3. How should Saul approach the situation?
It’s in Saul’s best interest to act ethically and trustworthy. Business ethics is the application of ethical behavior in a business context (FFF, 2015). In my opinion, acting ethically in business means more than just obeying laws and regulations. It also means being honest, doing no harm to others, competing fairly, and declining to put your own interests above those of your employer and coworkers which is something that Dr. Robert Smith did not do. To act ethically in business situations, you need a good idea of what’s right and wrong, which is not an easy task. It comes down to personal integrity and conviction to do what’s right even if it means doing something that’s difficult or personally disadvantageous. If he cannot make this choice, he can also just leave.


Collins, K. (2008). Exploring Business. Upper Saddle River, NJ: Pearson/Prentice Hall. Ferrell, O., Fraedrich, J., & Ferrell, L. (2015). Business Ethics: Ethical Decision Making and Cases (Tenth ed., p. 177). Stamford, CT: Cengage Learning. F.B.I. (2010, April 16). Retrieved April 13, 2015, from http://www.fbi.gov/about-us/investigate/white_collar/health-care-fraud

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