Sam told his employees they would all receive a year-end bonus from the company. Sam knew he was promising something that the company might not be able to deliver, but he wanted to keep his employees motivated. Sam is acting ethically.

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Sam is not acting ethically because he is making a promise he may not be able to keep, which could ultimately disappoint and demotivate his employees. It would have been more ethical for Sam to be honest with his employees about the possibility of a year-end bonus and work to find other ways to motivate his employees.

Sam Told His Employees They Would All Receive a Year-End