Companies are faced with difficult decisions that they must make on a daily basis, and Pegasus International Inc. is no exception (Freeman, 1991). In an effort to make the right choice, business ethics are implemented; which affirms human conduct that is wrong or right in a business context (Shaw, 2011: 8) A moral or ethical dilemma is when an agent must make a decision between two ethically compromising choices (White Hat Communications, 2014). In this scenario, Oswald faces a moral dilemma because he has to choose whether or not to expand the company by operating in China (Hackworth & Shanks, 2007). To operate in China, Oswald must repay the Chinese authorities and Oswald will have to reveal that the activity is not part of any dishonest corruption activity (ibid). A question Oswald will have to ask himself is also a frequent question in normative ethics: “What is the ethically right thing to do and how is it justified?” (Encyclopædia Britannica Inc, 2014). At stake for Oswald and his company are a $100 million business deal and the integrity of the company's ethical reputation (Hackworth & Shanks, 2007). The competing alternative actions that Oswald is confronted with differ in moral correctness and in the quality of the action's outcome (CIMA, 2010). Oswald is morally obligated not to operate in China but, at the same time, he is obligated. This essay will discuss the ethical approach of utilitarianism which will help Oswald choose the right action for him so that the ethical reputation of the company will not be ruined and the company will still be successful. There will be a critical evaluation, which will evaluate Oswald's situation and clearly discuss what appropriate actions should be taken by Oswald b...... middle of the document ......Britannica Academic Edition: http://www.britannica .com/EBchecked/topic/418412/normative-ethicsFreeman, R. E. (1991). Business ethics: the state of the art. New York: Oxford University Press, Inc. Gowdy, L. (2013, October 15). Virtue ethics. Retrieved from ETHICS: http://www.ethicsmorals.com/ethicsvirtue.htmlHackworth, M. L., & Shanks, T. S. (2007). The Case of the Million Dollar Decision. Markkula Center for Applied Ethics.RSRevision. (2011). Utilitarianism: criticisms. Retrieved from rsrevision.com/ethical Theory: http://www.rsrevision.com/Alevel/ethics/utilitarianism/strengths_weaknesses_utilitarianism.pdfShaw, W. H. (2011). Business Ethics 7th Edition. Boston: Wadsworth. White Hat Communications. (2014). What is an ethical dilemma? Retrieved from The New Social Worker: http://www.socialworker.com/feature-articles/ethics-articles/What_Is_an_Ethical_Dilemma%3F/