Where is the moral compass pointing

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Reference no: EM133939216

Question

You are the sales manager for a local radio station that has seen a dramatic downturn in ads and revenue as the local economy loses industries and small businesses. One of your biggest advertisers has been MighTY Mortgage. MighTY Mortgage spots feature the company president, Tom Tyler promising to "save our friends lots of cash." In these commercials Tyler claims that his company offers the lowest mortgage rates and will pay to have homes appraised.Two weeks ago state regulators charged MighTY Mortgage with a variety of unethical and illegal practices. The firm offers no proof that its loan rates are the lowest and charges enough in fees to more than cover the cost of the "free" appraisals. Investigators also found that, in most instances, MighTY failed to properly disclose loan terms to borrowers. The state wants to revoke the company's license, fine Tyler $250,000, and make sure the mortgage lender pays restitution to borrowers. However, final action has not been taken and won't be for several months.After temporarily pulling his ads, Tom Tyler wants to go back on your station's airwaves with a new set of commercials. The new spots still promise to save listeners lots of money but no longer mention free appraisals. Instead of claiming to offer the lowest interest rate, MighTY Mortgage now says it offers a low interest rate.

1. If you were the sales manager of the local radio station, would you broadcast the new commercials for MighTY Mortgage? Why or why not?

2. What factors are at play here? Is Tom Tyler using ethical business practices?

3. What laws or acts might come into play here? Provide insights and research to support your thoughts.

4. Where is the moral compass pointing? Why?

Reference no: EM133939216

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