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business
business ethics

Questions and Answers of Business Ethics

By not succumbing to the prevailing attitude, “Well, you either bribe or you don’t do business there,” Ikea found an end-run, a creative solution to international business’s ubiquitous
What issues do the PwC/Yukos situation and the Ikea situation have in common?. LO58
What are the decision points in doing business internationally and when do they occur?. LO58
What is the underlying cause of AES’s difficulty in doing business in Kazakhstan?. LO58
Use the three cases in this segment to develop a list of questions and concerns for companies considering expansion into countries with rich resources but rugged due process and governance.. LO58
What factor must be evaluated in doing the numbers related to operations or drilling in other countries?. LO58
We are committed to ensuring that sewn products are produced under lawful, humane and ethical conditions. As such, AAFA members make every effort to eliminate the use of forced and child labor from
AAFA strongly supports the concept behind the ILO/IFC Better Work program—taking a comprehensive approach to improving compliance with international labor standards within a country.. LO58
In our purchase contracts, we require our suppliers to comply with all applicable laws and regulations.. LO58
If it is found that a factory used by a supplier for the production of our merchandise has committed legal violations, we will take appropriate action, which may include canceling the affected
We support law enforcement and cooperate with law enforcement authorities in the proper execution of their responsibilities.. LO58
We support educational efforts designed to enhance legal compliance on the part of the U.S. apparel manufacturing industry.?. LO58
One executive noted, “We’re damned if we do because we exploit. We’re damned if we don’t because these foreign economies don’t develop. Who’s to know what’s right?” Is this phrasing
Would you employ a 12-year-old in one of your factories if it were legal to do so?. LO58
Would you limit hours and require a minimum wage even if it were not legally mandated?. LO58
Would you work to provide educational opportunities for child laborers?. LO58
What does the case reveal about the costs of production? What factors were CEOs not considering as they dealt with all the labor issues? Did they define the problem as “we can’t compete unless we
Discuss the views presented and why they are so different.. LO58
There was child labor in the United States until the federal labor legislation addressed it fully during the 1930s. Economists maintain that wages increase as skills do, and the initial wages are
Discuss the merits in the various positions on child labor and sweatshops in a company’s supply chain and in light of the recent issues that have emerged in the supply chain.. LO58
Should the Bhopal plant have been operated using U.S.safety and environmental standards? What would the U.S. policy be on the shantytowns?. LO58
Should the case have been moved to the United States for recovery?. LO58
List all the costs of the accident to Union Carbide.. LO58
Evaluate Dow’s position on the cleanup.. LO58
Later studies seem to indicate that the lack of adequate training for the local workforce operating the plant may have been a cause of the accident. Some have theorized that the cause of the accident
If you were a manufacturer holding a substantial inventory of a product that had been outlawed in the United States, would you have any ethical concerns about selling the product in countries that do
Suppose the inventory write-down that you will be forced to take because of the regulatory obsolescence is material—nearly a 20% reduction in income will result.If you can sell the inventory in a
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?. LO58
Would you include any warnings with the product?. LO58
If you had been an executive with Nestlé, would you have changed your marketing approach after the boycotts began?. LO58
Did Nestlé suffer long-term damage because of its third-world marketing techniques?. LO58
Does the CDC code address the concerns of the AAP and WHO?. LO58
Is anyone who worked in the infant formula companies responsible for the deaths of infants described in the United Nations study? Is there a line that companies could draw that emerges in this case?.
Analyze whether a company should comply voluntarily with the CDC Code.. LO58
If you were a hospital administrator, what policy would you adopt on discharge packs?. LO58
What if formula makers’ ads had a conspicuous notation or warning, “Remember, breast is best”? Would that address the issue with influencing new mothers’decisions on breastfeeding?. LO58
An advisor with a strategic advisory firm notes that Beijing officials prefer that those who operate within their borders keep their opinions to themselves: “So companies have to make that
There were calls by many in the United States as well as by Enes Freedom for the United States to boycott the 2022 Winter Olympics in China. The United States decided to have only a diplomatic
Are there ethical issues in individual tweets that affect organizations? What ethical categories apply to individual actions that harm organizations?. LO58
Is the NBA/Uyghur issue one that cannot be addressed without harm to some stakeholders?. LO58
World promptly made full disclosure of the conduct once it was discovered. LO58
World disclosed all information to the Justice Department and cooperated fully in the investigation. LO58
The nature and seriousness of the offense. LO58
World adding additional FCPA training to its compliance program. LO58
Termination of the executives involved in setting up the intermediaries and payments. LO58
Termination of all relationships with the intermediaries and third parties who made the payment. LO58
World’s repayment to the Justice Department its “ill-gotten gains” from the loan programs with the unions?. LO58
Explain the difference between a bribe and a facilitation payment.. LO58
Discuss the responsibilities of companies in preventing FCPA violations.. LO58
What does the decision about Qatar teach us about the impact of bribery?. LO58
Explain why third parties did not raise issues, questions, or concerns about FIFA operations.. LO58
Why did other nations not raise questions about the Qatar vote?. LO58we3
How do you think the payments for votes began?. LO58
Are there additional risks with nonprofits and NGOs for corruption? What was FIFA missing in its internal operations?. LO58
Add together all the fines and compare with the profits made from the bribes to determine whether Siemens made a good business decision with its approach to winning contracts.. LO58
Peter Loscher, the CEO who was hired to take over following the settlement of the FCPA charges, indicated that the company was a great innovator but no longer had marketing skills because it had
Reinhard Siekaczek, the former Siemens employee, largely responsible for Siemens’s accounting system that hid bribes for five years, and who was charged with breach of trust under German law, made
Why do we worry about these types of payments if the result is more jobs for those in Mexico, Brazil, and the other countries?. LO58
Why does it make a difference whether the payments were bribe or “grease”/facilitation payments?. LO58
Why was general counsel pushing for a “no payments to government officials” policy?. LO58
Why did Walmart keep its findings from the federal government? Describe the benefits of self-reporting.. LO58
Subsequent to the discovery of the payments in Mexico, issues about Walmart behaviors in India emerged. A business consultant there said that the payments result because it is so difficult to open
Why do you think GSK found nothing based on its whistleblower complaint?. LO58
What factors would have influenced these behaviors by the GSK staff and executives?. LO58
What is the impact of bribery on the pharmaceutical market in China?. LO58
How would you respond if GSK said that it was doing what everyone does in China?. LO58
Discuss the risks in having two sets of books for reporting purposes and actual internal results. lop8
Explain how compensation systems affect safety and operations.
Develop a list of the types of workplace conflicts and how they affect results and operations.
Analyze the effects the ethics of leaders have on the organization’s culture.
Provide the processes for confrontation of coworkers and leaders on ethical concerns and issues.
List the areas of concern in workplace diversity.
What are the parallels between this part of business reporting and financial reports?
What risks do you see in keeping two sets of books?
What happens to safety and patient care as a result of these approaches to reporting?
What lessons about self-reporting are important for regulators to learn from these examples?
What were the risks and benefits to stakeholders of higher vs. lower numbers?
What do you see as the motivation behind two sets of numbers in any industry or situation?
What does the adage, “Figures don’t lie but liars do figure” mean?
Also part of the NYOAG report was a finding of a correlation between Medicare’s adequate staffing rating for the nursing homes and the death rate. 1 was the lowest rating for staffing, and 5 was
Who can help with issues that fail to gain the attention of those in charge of the issue?
What do you learn about the limits of speaking up?
Based on what you learned in Reading 4.6 on compensation and the accompanying cases, discuss what happens to employees who are given goals to meet. What happens to the culture and compliance with
What were the values in conflict at Cintas that resulted in the accident and death?
What has Cintas changed since the time of the death of an employee? What have been the results?
One of the issues in the case is related to proving intent to deceive (defraud) investors. The defense argued that everyone knows start-ups fail. The issue was whether Ms. Holmes knew that the
What two sets of numbers patterns existed at Theranos?
How was Ms. Holmes able to convince so many impressive people about her company and its plan?
What conflicts of interest do you see in the case?
Evaluate the actions of Tyler and George Shultz.
Mr. Feuerstein once stated, “I don’t deserve credit. Corporate America has made it so that when you behave the way I did, it’s abnormal.” Given the final outcome, did Mr. Feuerstein end up in
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
Did the fact that Malden Mills is privately held make a difference in Mr. Feuerstein’s flexibility?
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
Given Locklear’s lifestyle, why did it take so long for Penney to take action? Do you see any red flags in the facts given?
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. What rationalizations was he using?
Do you agree that both the buyer and the seller are guilty in commercial bribery cases? Is the purchasing agent “more” wrong?
Many companies provide guidelines for their purchasing agents on accepting gifts, samples, and favors. For example, under Walmart’s “no coffee” policy, its buyers cannot accept even a cup of
Describe the problems that can result when buyers accept gifts from vendors and manufacturer’s representatives.
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

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