Businesses face difficult decisions that they must make on a daily basis and Pegasus International Inc. is no exception (Freeman, 1991). To try to make the right choice, business ethics are implemented; which states human conduct that is bad or good in a business context (Shaw, 2011: 8). A moral or ethical dilemma arises when an agent must make a decision between two ethically compromised choices (White Hat Communications, 2014). In this scenario, Oswald is faced with a moral dilemma as he must make a choice whether or not to expand the business by operating in China (Hackworth & Shanks, 2007). To operate in China, Oswald must pay Chinese authorities, and Oswald will have to disclose that the company does not dishonestly engage in corrupt activities (ibid). A question Oswald will have to ask himself is also a frequently asked 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 is a $100 million deal and the integrity of the company's ethically correct reputation (Hackworth & Shanks, 2007). The conflicting alternative actions Oswald faces differ in the moral rightness and quality of the outcome of the action (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 assessment, which will evaluate Oswald's situation and clearly discuss the appropriate actions that need to be taken by Oswald b...... middle of article......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. (October 15, 2013). Virtue ethics. Retrieved from ETHICS: http://www.ethicsmorals.com/ethicsvirtue.htmlHackworth, ML and Shanks, TS (2007). The case for the million dollar decision. Markkula Center for Applied Ethics.RSRevision. (2011). Utilitarianism: critiques. Retrieved from rsrevision.com/ethical theory: http://www.rsrevision.com/Alevel/ethics/utilitarianism/strengths_weaknesses_utilitarianism.pdfShaw, WH (2011). Business Ethics 7th Edition. Boston: Wadsworth. White Hat Communications. (2014). What is an ethical dilemma? Excerpted from The New Social Worker: http://www.socialworker.com/feature-articles/ethics-articles/What_Is_an_Ethical_Dilemma%3F/