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business
understanding business ethics
Business Ethics Case Studies And Selected Readings 6th Edition Marianne M. Jennings - Solutions
Suppose you were the executive in charge of marketing for R.J. Reynolds. Would you have recommended an alternative to the Joe Camel character? What if RJR insisted on the Joe Camel ad?
Then-Attorney General Eliot Spitzer (now governor of New York) pursued the analysts and the investment houses for their lack of independence. Although they all settled the cases brought against them, what types of criminal conduct could they be charged with?
If you were a doctor, how would you handle funded research from a company whose drug you are testing? Are there credo issues here?
Do you think the conflict of interest with regard to physicians and their relationships with pharmas is resolved?
Do you think the doctors act ethically in accepting the gifts, meals, and favors?
What category of ethical issue are the gifts to physicians? The consulting arrangements? The research arrangements?
What lessons should companies learn from the Whitley firing and lawsuit? What changes do you think Coke has made in its culture to comply with the SEC settlement requirements? Are there some lessons and elements for a credo in the conduct of individuals in this case?
List the total costs to Coke of the Richmond rigging. Be sure to list any costs that you don’t have figures for but that Coke would have to pay. Do you think those costs are done and over?
Make a list of all of the consequences Coke experienced as a result of the Richmond rigging.“The initial decision was flawed, and the rest of the problems resulted from that flawed decision,” was an observation of an industry expert on the Richmond marketing test. What did the expert mean with
Make a list of everyone who was affected by the decision to fix the numbers in the Richmond test market.
Why did the executives at Coke decide to go forward with the marketing studies? What questions from the models you have studied could they have asked themselves in order to avoid the problems that resulted?
Mr. Locklear said at his sentencing, “I became captive to greed. Once it was discovered, I felt tremendous relief.” Mr. Locklear’s pastor said Locklear coached Little League and added,“Our country needs more role models like Jim Locklear.”109 Evaluate these two quotes from an ethical
Many companies provide guidelines for their purchasing agents on accepting gifts, samples, and favors. For example, under Wal-Mart’s“no coffee” policy, its buyers cannot accept even a cup of coffee from a vendor. Any samples or models must be returned to vendors once a sales demonstration is
A vendor who paid Locklear $25,000 in exchange for a Penney order stated, “It was either pay it or go out of business.” Evaluate the ethics of this seller.
Did environmentalists exaggerate?
What lessons are learned from this case for applicability in other industries?
Do people ignore environmental issues for the sake of convenience? Do your arguments depend on whether you must change diapers?
Would it be a breach of duty to the hospital’s patients and shareholders to adopt a position(that is, using cloth diapers) that increases costs?
Did Arthur D. Little have a conflict of interest with Procter & Gamble’s sponsorship of its work?
Why do you think the court held that the punitive damage verdict was excessive?Is there another social issue regarding litigation here?
Evaluate the ethics of the insurers in denying large claims in order to earn the interest while litigation over the claim is pending.
Evaluate the ethics in Exxon’s secret deal on punitive damages.
Would Exxon make the same decisions about Hazelwood and cost cutting given the costs of the spill?
What changes in Exxon’s ethical environment would you make?
Was Exxon management morally responsible for the spill?
Why did the company cut back on staff and maintenance expenditures?
Evaluate Exxon’s “attitude” with regard to the spill.
Has Herman Miller changed its focus? Why?Was the change in focus a chance to compete more effectively?
Would you be less comfortable with Herman Miller’s environmental decisions if it advertised them?
Why would Herman Miller decide to buy equipment that exceeded the 1990 Clean Air Act standards when it would not be needed in three years?
Is Herman Miller bluffing with “green marketing”? Would Albert Carr support Herman Miller’s actions for different reasons?
Is it troublesome that Miller’s profits were off when Foley made the decision?
Evaluate Foley’s decision on changing the Eames chair woods. Consider the moral standards at issue for various stakeholders.
Evaluate the actions of Greenpeace and PIW.Can you assume that those dedicated to environmental causes will always be forthright? Is the use of the audit tool ethical?
Explain the examples of proactive behavior given and why there was business benefit in those decisions and actions.
What is the difference between the environmental issues of thirty years ago and today’s issues?
Who should be responsible for environmental issues and programs in a company, and why?
Did noble goals on all sides result in unintended consequences at United and GM?
Give a list of the economic and ethical issues in pension funding, employee wages, and RIFs.
Describe the regulatory cycle on pension fund accounting. Discuss, again, the issue of the legal vs. ethical accounting and interpretation of ERISA.
Did Mr. Feuerstein focus too much on benevolence and not enough on business? Did he rely only on goodwill to survive, and did he neglect the basics of strategy, marketing, and addressing the competition?
What impact would a closure of Malden Mills have had on Methuen?
Mr. Feuerstein is a Talmudic scholar who often quotes the following proverbs:“In a situation where there is no righteous person, try to be a righteous person.”“Not all who increase their wealth are wise.”80 What wisdom for your credo comes from these two insights?
Mr. Feuerstein has stated, “I don’t deserve credit. Corporate America has made it so that when you behave the way I did, it’s abnormal.”Is he right? Was he right in continuing the salaries?
Is there a general lesson here for your credo?
Why do you think Mr. Price’s family intervened on behalf of Patrick?
Do carelessness and ethics have a relationship?
At the time of Sims’s accident, there were no laws that prohibited text messaging while driving. Now, laws have emerged, or text messaging is included as a form of distraction under existing laws. What do you see evolving in terms of the regulatory cycle?
How would you characterize the ethics of the college students who purposely gave incorrect directions to get their pizzas free?
Is there a similar standard here with danger to individuals vs. a business model?
Did the $78 million jury verdict punish Domino’s for its focus on the thirty-minute delivery time?
Was the public perception of safety issues hurting Domino’s more than the thirty-minute guarantee helped it?
Even with monitoring, screening, and training of its drivers, could Domino’s guarantee that all of them would drive safely? Was the risk too great?
Applying the regulatory cycle, what do you see happening with regulation in both the refinery and drilling parts of the oil and gas business?
Evaluate the social responsibility positions of BP in light of the refinery explosion and the pipeline issue. What can companies learn from the BP experience?
What was the impact of the emphasis on cost cutting on BP’s culture? What was the impact on the company’s performance?
Discuss how BP got into the position in which it finds itself in late 2006 and what might have prevented the spill, the financial fallout, and the loss of reputation. Be sure to factor in the financial implications of any decision made during the period from 2001 to 2006.
Discuss the ethical, negligence, and environmental issues you see in this case.
What was different about the choices in the asbestos industry versus those in the utility industry when the EMF issues arose? What factors would go into the decision to manage the situation as opposed to simply continuing to sell the product?
What happens with regulation and litigation?
What types of voluntary actions can businesses take?
Name several issues you can think of regarding the latency stage.
Evaluate Mr. Kim’s remark about being a“rat.”
A letter to the editor of the Salt Lake City paper, the Deseret News, read as follows:Instead of pursuing legal proceedings, we should be erecting a statue of Tom Welch in Washington Square and put a canopy to keep the pigeons, vultures, the Chris Vancours, and the Steve Paces off of him. It is
Tom Welch sent a fax to his friends and copied reporters. The note contained the following language: I am saddened and dismayed that so many feel the need to isolate responsibility for what—at the time—were cooperative decisions.Had our agreed course of action been questioned at the time by
A lawyer representing the SLCOC in the Justice Department probe has stated, “There were a lot of things that were unethical, but that’s a long way from being criminal.”48 Given the outcome of the criminal trial, was she correct?
One member of the SLCOC noted that a shopping trip to Wal-Mart was a “good value” and could not be corruption. Do you agree?
Why do you think the expelled members were from third world nations (Togo, India, Mauritius, Nigeria, Mongolia, and Algeria)?
When Pound issued his report and recommended a reprimand for Phil Coles, USA Today columnist Christine Brennan wrote the following:This reminds me of the fabulous way the IOC handled a messy gift-taking situation involving member Phil Coles earlier this year. The IOC refused to use an independent
Richard Pound, an IOC member and a lawyer from Montreal, was the lead investigator for the IOC report. His twenty-four-page summary indicated that “inappropriate activities of certain members of the IOC did not commence with the candidacy of Salt Lake City.” The report also notes, “It is
In one discussion of exchanges with IOC committee members, SLCOC members brought athletes from the Sudan to the United States for training as part of an exchange for Sudan members’ votes. One person associated with the exchange has said, “In our minds, we distinguished the transactions in which
Tom Schaffer, the attorney for Mr. Welch, said that his client and Mr. Johnson did “what they had to do” to win a bid in a system that“stinks.”41 Are the flaws in a system a justification for the payments? Ken Bullock has noted, “The Games are an aphrodisiac. If you want something bad
What questions did Google and Yahoo fail to answer in making their business decision to enter this large untapped market?
Did Yahoo and Google act ethically in making their decisions to do business in China?
What impact do bribes have on economic systems?
What are the long-term implications of bribes?
What are the short-term implications of bribes?
Why do companies pay bribes in other countries?
Would you include any warnings with the product?
Is selling the product in another country simply a matter of believing one aspect of the evidence—that the product is safe? Is this decision a matter of the credo as well?
Suppose the inventory write-down that you will be forced to take because of the regulatory obsolescence is material—nearly a 20 percent reduction in income will result. If you can sell the inventory in a foreign market, legally, there will be no write-down and no income reduction.A reduction of
If you were a manufacturer holding a substantial inventory of a product that has been outlawed in the United States, would you have any ethical concerns about selling the product in countries that do not prohibit its sale?
What two PwC values would be in conflict if the Russian government demands disclosure by PwC?
When countries open up to capitalism and economic freedom, there is much cream—that is, businesses can move in easily and capture markets with little effort. However, what are the issues that accompany this ease of initial introduction?
Referring back to the Laura Nash model, how did PwC get into this situation in the first place? What issues should a company consider before doing business in an economically developing country? What are the risks? Did this ethical dilemma begin long before the Russian government’s demands of PwC?
Discuss the relationship between social responsibility and the sustainability initiative and compliance with the law. What benefits do companies gain from social responsibility actions?
Are there any lines you could draw (some elements for your credo) based on what happened at Chiquita?
Why does the term technical violation creep into our discussions of ethical and legal issues? Reid Weingarten, Mr. Hills’s attorney has said, “That Rod Hills would find himself under investigation for a crime he himself reported is absurd.”8 Evaluate Mr. Weingarten’s analysis of the
Refer back to the Laura Nash question “How did Chiquita get into this position in the first place?” What of the sale of its most profitable unit in 2004?
What did this company have in common with Enron? WorldCom? HealthSouth?
What issues did the executives and Sir Philip miss in their decisions to just keep the AAA rating with sufficient reserve numbers?
List the elements in the Royal Dutch culture that contributed to the decisions to overstate reserves and to continue those overstatements.
What is the difference between the CFOs who left the company and other officers who stayed, many of whom were promoted? Consider the congressional testimony of the various officers and others associated with HealthSouth. What made their view of the situation at the company different?
Tie the tone-at-the-top issues into this piece, and find the common factors in the other companies.
What in the culture of HealthSouth made it difficult for employees to raise concerns about the company’s practices and financial reporting?
What thoughts do you gain about the “gray area” from the options experience?
What credo ideas do you gain from the officers involved in these cases?
Consider the conduct of Dr. McGuire. Why do you think he believed and continues to believe that he did nothing unethical or illegal?
Give some tests from Units 1 and 2 that would help with answering the question “Is this fair?”
One of the tragic ironies to emerge from the collapse of Arthur Andersen, following its audit work for Sunbeam, WorldCom, and Enron, was that it had survived the 1980s savings-and-loan scandals unscathed. In Final Accounting: Ambition, Greed and the Fall of Arthur Andersen, the following poignant
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