Annual Executive Health Evaluations Questions I would like someone to help me answer these questions. I would like them answered thoroughly but not lengthy

Annual Executive Health Evaluations Questions I would like someone to help me answer these questions. I would like them answered thoroughly but not lengthy. Simulon is a publicly-owned defense manufacturer in the U.S. with approximately
20,000 employees, 10,000 of whom are unionized. The company is structured
functionally and has divisions such as finance, manufacturing, marketing, human
resources, etc. The company has a CEO, 6 vice-presidents, and 13 directors. All are
considered “executives.” The average employee wage is $40,000 per year. Executive
pay ranges from $150,000 per year for some directors to $750,000 per year for the
CEO. Company revenue last year was approximately $1.6 billion. The stock is currently
selling at about $30 per share and profits are about 5% of revenue.
Recently the Board of Directors was presented with a management request to
implement a comprehensive annual executive health evaluation at the Mayo Clinic to
ensure the good health of company executives who are crucial to the company’s
continued success. The annual evaluation would consist of a medical history review,
complete cardio-pulmonary evaluation, comprehensive lab analysis and blood profile,
nutritional and lifestyle assessment, fitness assessment, full-body imaging services, and
a personalized report and review with a personal executive health physician. While
costs cannot always be determined in advance and will vary based on age, gender,
personal and family history, symptoms, and high-risk factors, it is estimated that the cost
of the annual two-day physical would be around $5,000 per executive, excluding travel
costs. Because of the comprehensiveness of this preventive exam, the costs would not
be covered by the company’s normal medical plan.
A member of the Board asked how the increased cost would be covered. The CEO
responded that the total annual cost for the health evaluation itself would be only
$100,000 and could easily be recovered by increasing medical premiums for all hourly
employees by only $10 per year. With travel, the costs might double. In his words “Such
an increase would be imperceptible to employees.” However, he went on “We can’t do
that because of the union agreement. Therefore, we would have to raise the premiums
on the salaried exempt employees. The cost would be the same, an increase in their
medical premiums of about $10 per year.”
The board said they would take the CEO’s recommendation under consideration.
Answer the Following Questions:
1. Are annual executive health evaluations of this type a good idea for protecting a
company’s executive talent?
2. Are there any ethical issues involved in this situation? If so, what are they?
3. Who are the stakeholders in this situation?
4. What are the potential consequences or outcomes for each stakeholder?
5. Should the Board approve the CEO’s proposal? Why or why not?
6. Which ethical approach guided your decision (utilitarian, rights, justice, common
good, virtue)?

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