Paper details
Purpose: In the first assignment, you have the opportunity to see how ethics can play out in a real-world
scenario. You will read the case scenario and answers the questions in a narrative format. Use headings
for each question. Headings are not the question. You are required to use the course material to support
your reasoning and the conclusions made.
Outcomes met by completing this project:
1. identify ethical issues that arise in domestic and global business environments using an understanding of
ethical concepts and of legal and business principles
Case Scenario:
The outbreak of the COVID-19 pandemic required Americans to shelter in place thus causing the U.S.
economy to freeze-up, resulting in millions of lost jobs. The U.S. Congress passed legislation to try and
limit the economic damage. Included in the legislation was a stimulus package that would give $1,200 to
single tax filers making $75,000 or less and $2,400 to married couples making $150,000 or less. The
purpose of the payment was to give people emergency funds and to stimulate the economy. Also included
was the CARES Act that provided the Paycheck Protection Program (PPP). The PPP was a programadministered by the Small Business Administration that was targeted at small business. It provided for a
government loan that was forgivable if used to pay employees’ salaries and benefits, mortgages, rent, and
utilities. According to the SBA website, “[t]he Paycheck Protection Program is a loan designed to provide a
direct incentive for small businesses to keep their workers on the payroll.”
USAA is a member-owned organization that provided insurance and financial services exclusively to
current and former members of the military as well as their family members. USAA has an excellent
reputation as a well-run organization and for giving its members good service. Many USAA members
maintain checking accounts with it. Some of those members who have checking accounts had overdrawn
their balances and had a negative balance in their accounts. When the $1,200 or $2,400 stimulus check
were deposited, USAA used those amounts to offset the negative balances in some of its members’
accounts. Members were not informed in advance that this would be the case. This resulted in some USAA
members not having any access to the stimulus money. The action USAA took in crediting the funds to
existing account deficits was perfectly legal.
Shake Shack is a corporation that owns and licenses restaurants selling traditional American fare like
hamburgers and milk shakes. It currently operates 124 locations in the U.S. and overseas. As of May 4,
2020, the company had a market capitalization of $2.06 billion. The company is publicly traded on the New
York Stock Exchange. In 2019, Shake Shack’s CEO received $2.3 million in compensation. Shake Shack
applied for and received a loan of $10 million under PPP. The loan was permissible under a provision in
PPP the allows restaurant chains to apply when each location has fewer than 500 employees. Shortly after
Shake Shack received the loan, the PPP ran out of funds and many small businesses did not receive
loans.
Small Business Administration. (2020) Retrieved from https://www.sba.gov/fundingprograms/loans/coronavirus-relief-options/paycheck-protection-program
How to Set Up the Paper
Create a Word or Rich Text Format (RTF) document that is double-spaced, 12-point font. The final product
will be between 4-6 pages in length excluding the title page and reference page. Write clearly and
concisely.
Create a title page with a title, the course number and section, the instructor’s name and your name.
Instructions:
Course Material
For this project, you are required to use the case scenario facts and the course material. External sources
are not permitted. You are not researching on the Internet or using resources from outside the course. You
are expected to answer the requirements identified below showing the connection between the case
scenario facts and the course material. Using course material goes beyond defining terms and are used to
explain the ‘why and how’ of a situation. Avoid merely making statements but close the loop of the
discussion by explaining how something happens or why something happens, which focuses on
importance and impact. In closing the loop, you will demonstrate the ability to think clearly and rationally
showing an understanding of the logical connections between the ideas presented in a case scenario, the
course material and the question(s) being asked. Using one or two in-text citations from the course material
throughout the entire paper will not earn many points on an assignment. The use of a variety of course
material is expected consistently supporting what is presented. The support must be relevant and
applicable to the topic being discussed. Points are not earned for mentioning a term or concept but by
clearly and thoroughly explaining or discussing the question at hand.NOTE: If external sources are used, what is presented will not count and a penalty for following instruction
will apply.
Project Requirements
Introduction
Write an Introduction paragraph. The Introduction paragraph is the first paragraph of the paper and will be
used to describe to the reader the intent of the paper explaining the main points covered in the paper. This
intent should be understood prior to reading the remainder of the paper so the reader knows exactly what is
being covered in the paper.
Consider writing the introduction last to ensure that all of the main points are covered.
Ethical Issue(s)
Identify and discuss the ethical issue(s) related to USAA and Shake Shack
Stakeholders Implications
Identify the stakeholders involved in the actions of both companies.
Discuss the potential implications of the company’s actions on each stakeholder or stakeholder group. Give
examples.
Kantian Viewpoint
Explain how Kant would view the actions of both USAA and Shake Shack.
Utilitarianism Viewpoint
Explain how a utilitarian would view USAA and Shake Shack’s actions.
Recommended Actions
Regardless of what these companies actually did, recommend the actions that you think they ethically
should take. There is no right or wrong action, but rather it is about supporting the actions you choose from
your ethical arguments.
Conclusion
Write a concluding paragraph that is brief and summarizes the main points. Provide specific information
related to the major topics discussed in the paper.