(20 pts) Ethical Issue-Spotting – 1 paragraph Give an example of unethical busin

Question

(20 pts) Ethical Issue-Spotting – 1 paragraph
Give an example of unethical business behavior (briefly describe what is going on) and explain why it is unethical. You can choose from the list of unethical business examples in Ghillyer, p.25, choose any other example from the business news (provide citation), invent your own hypothetical scenario of unethical business behavior, or describe an ethical problem in your current work environment (IMPORTANT: change company and co-worker names to keep it anonymous). Whichever you choose, tell us which at the outset of this paragraph where you got it. And keep it to one paragraph.

(30 pts) Make a NUMBERED LIST of at least three (3) stakeholders who are impacted negatively by this unethical behavior. See Ghillyer, p. 25, Figure 2.2, for an example of a LIST using the WorldCom financial scandal of the 1990s. See Ghillyer, p. 24 for Who are the Stakeholders? if you are unclear what stakeholder means.

Penalties will apply If you do not LIST the stakeholders and negative impacts. For example, if you describe them in a written paragraph or full sentences without a numbered list. We need them listed to help us correlate your stakeholders and impacts by seeing them LISTED such as my example below or you will be penalized.

Just as in my example below, and in Ghillyer’s LIST of the six classifications of stakeholders and the impact upon each stakeholder in the WorldCom case at p. 25, YOU are to do the same for your chosen example of unethical business behavior by LISTING at least three (3) stakeholders and the negative impact upon each.

Here is my example (my own hypothetical but based on a real case):

This is my own hypothetical example of unethical business practice.
XYZ Tobacco Company imports a special Brand X tobacco from Brazil that is higher in nicotine content than U.S. tobacco. By blending Brand X tobacco into its products, XYZ manipulates the nicotine content of its products to better satisfy customer demand. The company conceals its activities from the Food and Drug Administration because blending Brand X tobacco to manipulate nicotine levels would subject the company to the FDA’s regulatory authority as a drug manufacturer. Each year, XYZ files false statements with the FDA that do not properly disclose its Brand X imports in response to official requests the government sends to all U.S. tobacco companies asking for a list of all tobacco imports. This behavior is unethical because it is dishonest, involves lying and concealing records, and exposes the company’s customers to a higher level of nicotine exposure than they voluntarily assumed.

XYZ’s customers - consume more nicotine than they were aware, may be harmful

XYZ’s competitors – unfair they follow the rules, and may lose business to XYZ

U.S. government - laws are broken, crime is committed

AG. 2.2 Stakeholder Impact from Unethical Behavior Interest in the Organization or n on which to base . Loss of stock value - Loss of employment Not enough money to pay severance packages or meet pension obli (as WorldCom struggled to combine the different operating and biling Delayed payment for delivered goods and services ices when the company declared bankruptcy Failure to comply with all relevant legislation . Loss of principal and interest payments Falilure to repay debt according to the agreed schedule . Unemployment of local residents offices to the relevant stake- Corporate Governance The holde the lowest level in businesscorporations are directed and history PROGRESS QUESTIONS rs, appears to be at system by which business controlled 1. Explain the term business ethics. 2. Explain the difference between a descriptive and Several prominent organizations (all former "Wall Street darlings")-Enron, WorldCom, Lehman Brothers, Bear Stearns-were found to have hidden the true state of their precarious finances from their stakeholders. Others-Adelphia Cable, Tyco, Merrill Lynch- were found to have senior officers who appeared to regard the organization's funds as their personal bank accounts prescriptive approach to business ethics. 3. Identify six stakeholders of an organization. 4. Give four examples of how stakeholders could be negatively impacted by unethical corporate behavior >> An Ethical Crisis: .Financial reports are released that are then restated at a later date. Is Business Ethics .Products are rushed to market that have to be an Oxymoron? recalled at a later date due to safety problems (Takata air bags) Our objective in identifying the types of unethicalOrganizations are being sued for monopolistic concerns that can arise in the business environment and the impact that such unethical behavior can on the stakeholders of an organization is to develop practices (Microsoft), race and gender discrimi mental contamination (GE). employees they lead n have nation (Walmart, Texaco, Denny's), and envirorn the ability to anticipate such events and ultimately toCEO salary increases far exceed those of the put the appropriate policies and procedures in place to prevent such behavior from happening. CEO salaries have increased while shareholder Unfortunately, over the past two decades, the ethical track record of many organizations would lead us to believe that no such policies or procedures have been in place. The standard of corporate governance the extent to which the officers of a corporation are fulfilling the duties and responsibilities of their returns have fallen. According to the High Pay Centre, for example, Bob Dudley, the chief executive of oil giant BP, received a 20 percent pay increase to nearly $20 million in 2015, despite laying off 7,000 employees and overseeing a performance deficit of $6.5 billion. Chapter 2/ Defining Business Ethics25

Explanation / Answer

There is a towel manufacturing company in India. Let’s name it ABC Ltd. The company usually exports its towel worldwide. The company is known for being highly exploitative with its factory workers. The factory workers are made to work in extreme conditions, asked to do overtimes with no concrete benefits. The company also does not let a trade union get associated with the company and the workers getting registered to any kind of labor union. If a worker raises his voice against injustice, he will be fired. However, whenever there is an audit conducted on compliances, they get the auditors busy and set all the compliances right. There is a false crèche in the company, which comes up only at the time an auditor is on premises. Sometimes if they get caught for a compliance violation, they try to bribe the auditor.

This is highly unethical because it is dishonest, involves lying and bluffing as well as bribing. They are also exploiting the workers and depriving them from their basic rights.

List of stakeholders:

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