This case focuses on the perplexing actions of John Mackey, the CEO of Whole Foods Market. Whole Foods was trying to acquire a competitor, Wild Oats Markets, and in an ill-fated effort to influence the two company’s stock prices and the acquisition terms, Mackey posted about 240 messages that were increasingly critical of Wild Oats in relation to Whole Foods. For nearly eight years, John Mackey, using the pseudonym Rahodeb, posted some 1,300 comments about Whole Foods Market; in some of his postings, Mackey lauded Whole Foods’ stock and cheered its financial results. The postings of Rahodeb (or John Mackey) came to light during an investigation associated with the Federal Trade Commission (FTC) antitrust suit that was filed in June 2007 to block Whole Foods’ acquisition of Wild Oats. Subsequent legal filings were undertaken by the SEC. But in spite of the legal wrangling, Whole Foods Market ended up acquiring Wild Oats¾an outcome about which Mackey subsequently expressed regret.

The seemingly bizarre behavior of John Mackey can be explored from a variety of perspectives. First, the ABC model of an attitude can be used to analyze John Mackey’s blog postings as well as other statements he made. Second, the concepts of instrumental values and terminal values can be applied in attempting to understand Mackey’s behavior. Third, the ethics of John Mackey’s postings under the pseudonym Rahodeb has the potential for fostering a lively discussion. Finally, Mackey’s blogging behavior can be explored from the perspectives of stages of cognitive moral development.

Questions

1.    Using the ABC model of an attitude, analyze what John Mackey’s online comments about Wild Oats reveal about his attitudes.
2.    Using the concepts of instrumental values and terminal values, explain John Mackey’s blogging behavior relative to the Wild Oats acquisition. Using the same concepts explain the reaction of the SEC, FTC, and interested observers to Mackey’s blogging behavior.  
3.    From your perspective, did John Mackey act in an ethical or unethical manner? Explain the reasoning behind your answer.
4.    At what level of cognitive moral development is John Mackey apparently operating? Explain your answer.
5.    What insights regarding John Mackey’s attitudes, values, and ethics are provided by his use of the pseudonym ‘Rahodeb’ to disguise his extensive online commentary about Wild Oats?