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

Hiring illegal workers may provide short-term benefits, but it is against legal and ethical principles. It puts the business at risk of facing penalties and having their reputation tarnished. Additionally, by hiring illegal workers, they indirectly set the ethics code for their firm, which may lead to other unethical practices. Small businesses also need to follow ethical codes and standards to establish trust and credibility with their customers, employees, and stakeholders.

Jay and Jim Spears Own a Lawn Irrigation System Business