Chapter 1 and Chapter 3 - Questions and Exercises
Chapter 1 (pages 26-27)
1. What are the potential ethical issues faced by Acme Corporation? The potential ethical issues faced by Acme Corporation is giving gifts can lead to dilemmas about whether the gift being given will be perceived as a bribe or simply a gift. If gifts are given, it shouldn’t be given to one person, but instead, an entire team or division. As this could cause other members of the team to feel that there is something more is happening. In this specific case, Frank is giving personal gifts only to Otis, which could cause problems for Frank and/or Acme Corporation in the future.
2. What should Acme do if there is a desire to make ethics a part of its core organizational values? Acme Corporation should make sure that all the rules and guidelines are in writing as well as communicate them to all the personnel as part of its core organizational values. These guidelines should detail items including the giving of gifts to customers as far as a maximum dollar amount or the number of times you are allowed to do it per customer.
3. Identify the ethical issues of which Frank needs to be aware. The ethical issue that Frank needs to be aware of is the fact that, Otis can perceives the gifts he is being given as a bribe. It seemed as Frank was unsure about Otis’ request in Vegas, what will happen if he doesn’t satisfy this request? It’s good to go with your initial feeling and if needed, say no in a professional way.
4. Discuss the advantages and disadvantages of each decision that Frank could make. The advantage for Acme Corporation is the account is growing and adding to their inventory. In turn, Frank is receiving bonuses and everyone is happy. The disadvantages could be, as I stated above, that the gifts could be perceived as a bribe. Taking customers to an “adult entertainment” club is not a good choice and could affect both Frank and his boos Amber.
Chapter 3 (pages 88-89)
1. What are Joseph’s ethical problems? Joseph’s ethical problems in this case are fairness, honesty, intimidating behavior by his sales people and bribes or kickbacks to customers. Kickbacks can cause more issues than people realize and ultimately hurt the company in the long run.
2. Imagine that you are Joseph. Discuss your options. If I was Joseph and discovered unethical issues, I would do what I could to resolve the issue, but ultimately, I feel it would be my responsibility to report this information to my boss. By not reporting this, I feel I would be putting my job on the line. First, I would have a meeting with all the sales people and my boss to discuss the company policy of ethical/unethical behavior as well as no tolerance policy along with the consequences.
3. As Joseph, what other information do you feel you need before making your decision?
I would look at all the issues at hand. Determine which ones were serious and need to be brought to my boss’s attention. I would also try to find out what has been done in the past with “kickbacks”. I would also have all information documented, at hand and prepared to show my boss everything.
4. Discuss in which business areas the ethical problems lie. The ethical problems in this case are fairness, honesty, intimidating behavior by his sales people and bribes or kickbacks to customers. But this is not only with the sales people, as if Joseph doesn’t say anything to his boss, he will also be part of the problem. I also believe that Kathryn, Joseph’s boss is creating part of the problem as well. It’s good to put responsibility on the managers, but if they are not able to solve something, having an open door to help is the proper way to go. Instead, she makes them fear going to her. The ethical problems are all the way around in this case.