Kent's options are to go ahead with the original plans, to modify the game or to take the game to other markets where marketing it would not be considered a violation of the company's social responsibility. Sex, violence and gambling are all controversial subjects in the United States, but all have significant commercial value. Some groups feel that these are negative attributes and should not be commercialized, while others view them as acceptable within certain contexts. Controversy typically emerges when the use of sex, violence or gambling is done out of what most of society would consider an acceptable context. In other countries, however, cultural norms are different. It is perfectly acceptable to market sex, violence or gambling to other countries if those elements are within the cultural norms of those societies. Cultural norms differ, and it is poor management to view the norms of other cultures through the lenses of your own culture.

6) There are several benefits to business ethics. One is that it elicits greater employee commitment. The more ethically a company treats its employees, the more likely they are to make sacrifices for the company. Similarly, strong ethics contributes to investor loyalty. Studies have shown that firms whose employees have a high degree of honesty and integrity earn higher returns than firms whose employees do not consistently demonstrate these traits. Investors recognize that an ethical culture "provides the foundation for efficiency, productivity and profits." (p.19). Ethics also contribute to customer satisfaction. This leads to stronger long-term relationships with customers, which is a key revenue driver in many industries. All of these factors contribute to the bottom line - strong ethics leads to higher profits. Unethical firms suffer from poor returns and declining stock prices.

7) Transactional leaders are those who seek to influence employee behavior by barter or bargaining. Transformational leaders are those who seek to influence employee behavior through motivation and trust. Transactional leaders are thus more focused on conduct, desired outcomes and a dynamic relationship. The transformational leader will foster a culture that promotes the goals, rather than demands them. The two therefore...

The transactional leader must create a benefit for the employees in order to manage their behavior whereas the transformational leader must create a motivation in order to manage the behavior. Both types have the same objectives with regards to setting goals and ensuring that employees reach those goals, but the two types of leaders have very different approaches to the task.
8) Ethical issue intensity refers to the importance of the ethical issue to the decision maker. A significant portion of ethical issue intensity comes from senior management, who define the organization's ethical position. There are also legal considerations that can increase the intensity of an issue. Moral intensity refers to the perception of social pressure and the cause the decision could have on others. Essentially, ethical intensity relates to the ethics of the issue; moral intensity refers to the perception of right and wrong in regards to the issue. A decision may be ethical according to the ethics of the business but not moral according to society. When conflict arises between ethical intensity and moral intensity, ethical conflict may arise.

9) Leadership refers to the ability to guide an organization. In terms of business ethics, leadership relates to the ability to guide an organization's ethical standards. The leader sets the goals and outlines the path by which the members of the organization can achieve those goals. The leaders influence the organization's culture and attitudes towards ethics. Beyond this, leadership has several functional roles as well. The leaders must ensure that ethical standards are not only developed, but communicated. The standards must be reinforced, measured, and evaluated as well. The leaders must guide the organization not merely in terms of setting out an initial strategy but they must also ensure that the strategy is implemented. Lastly, they must continue to evaluate and revise the strategy. So leadership in the context of business ethics has two broad functions. The first is to set the ethical strategy and the second is to take the day-to-day steps to ensure that the ethical strategy is implemented. The implementation must be consistent with the organization's ethical objectives.