The CEO and two other executives at an automotive parts manufacturer were recently fired after being charged

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The CEO and two other executives at an automotive parts manufacturer were recently fired after being charged with fixing prices on several key automotive parts sold to the auto industry. Executives at competing manufacturers face the same charges for also participating in this collusion. Profit margins have come under intense pressure in the industry, which could cause one or more auto parts firms (possibly this company) to go bankrupt. When the wrongdoing was discovered, most employees involved in product pricing (but not implicated in price fixing) were surprised. The executives were highly respected in their fields of expertise, so many staff members interpreted the unusual pricing decisions as a new strategy, not an illegal activity. Apply your knowledge of personal and ethical values and behaviour to explain why the unethical activity may have occurred.

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Canadian Organizational Behaviour

ISBN: 9781259271304

10th Canadian Edition

Authors: Steven McShane, Sandra Steen, Kevin Tasa

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