You recently received news that your Uncle Alex passed away after a long battle with lung
cancer. To your surprise, he left you $25,000 in his will, saying you were his favorite nephew. You
remember your uncle as a hard-working man who loved baseball and liked nothing better than
to watch you pitch for your college team. Unfortunately, your uncle started smoking as a young
man and eventually became a heavy chain smoker. His doctors said that smoking was the
primary cause of his lung cancer.
After receiving the inheritance, you wonder where to invest the money. Your old teammate Jack,
who is now a financial advisor, recommends that you buy stock in a well-known multinational
firm that offers a good dividend and has solid growth potential. He tells you the firm’s primary
product is tobacco, but assures you it produces many other products as well. You know Jack has
your best interests at heart. You also believe Uncle Alex would like to see the money he left you
grow. However, you wonder if a company that markets tobacco is an appropriate place to invest
your inheritance. What are the ethical alternatives in this situation? What are the consequences
of the alternatives? What will you do?
