Unedited 11/26/08 |
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IT Ratio
IT Ratio: The ratio between what a buyer expects and what they actually receive. An advertisement represents the "front side" of a deal. It says for example that if you sign up now "you can get phone service for $19.99 a month." The "backside" of the deal reveals that the consumer must actually pay $32.41 a month for the service. On top of that, this amount is only good for six month after which the charges go up even more. So the IT Ratio here is 1:1.62. The letters IT signify the integrity. This ratio gives the ethical evaluator some idea of the dilution of business integrity. Integrity in this light means "doing what you say you will do in fact...” In other words a business with a high IT Ratio is offering the symbol of a product or service but not the substance of product or service. IT Ratios can go quite high in today’s world. One can find a car for rent at an airport for $16.50 as advertised on the Internet. The actual amount billed is $59, and that does not include insurance. By cleaver means what looked like a good deal was in fact not very good deal at all. Here, the IT Ratio is 1:3.58. At a minimum the ethics of this transaction boils down to what is called "constructive taking."
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