Jay and Jim Spears own a lawn irrigation system business. They perform installations and maintenance of these systems. Several of their customers are golf courses, but they serve a large group of residential customers as well. When they started the business ten years ago, they made a pact to always operate within the legal limits of the law, but lately, the competition is eating them alive. Local competitors have hired illegal immigrants to perform the manual labor. They do not pay taxes on these employees - they just pay them in cash at the end of the week. Employment taxes are a burden for small businesses. Jay and Jim do not want to hire illegal workers. There's a risk if you permit an illegal worker to drive a truck; or, if he/she has an accident on the job. You have just studied business ethics in your class. You inform this partnership that:
A)Taxes only need to be paid for the owners.
B)They are not only taking a chance that a bigger problem may occur, they are indirectly setting the ethics code for their firm.
C) Small businesses may not be able to worry about ethics codes. These types of documents are better suited for big business.
D)It is not unethical to try to better the lives of others. Everyone needs jobs.

Question

Quizplus · Accepted Answer

By hiring illegal immigrants and not paying employment taxes, Jay and Jim's competitors are breaking the law and creating an unfair advantage in the market. While it may be tempting to follow suit in order to stay competitive, Jay and Jim should consider the long-term consequences of their actions. If they compromise their values and ethics now, it may be difficult to regain the trust and respect of their customers, employees, and community. Additionally, by not paying employment taxes, they are not contributing to important social programs like Social Security and Medicare, which may hurt their own employees and customers in the long run. Ultimately, Jay and Jim should focus on finding new and innovative ways to stay competitive that do not compromise their values or the law.

Jay and Jim Spears Own a Lawn Irrigation System Business