Question
After reading the following business ethics dilemma fact pattern, please submit your recommendation as to the proper solution to this ethical dilemma. Since the fact
After reading the following business ethics dilemma fact pattern, please submit your recommendation as to the proper solution to this ethical dilemma. Since the fact pattern is general in nature, you may supplement the case with any additional facts that support your recommendation. Please be sure to state all assumptions you are making. No outside research, beyond your textbook, is required. Carefully state all issues involved, the legal and regulatory parameters affecting this dilemma, the various stakeholders affected with their respective interests, all possible courses of action or solutions available, and your final choice as to the proper solution, in your opinion, to this dilemma. There is no "correct" answer to this case. It is simply based on the assumptions you make to support your recommendation. While you will identify all possible courses of action, you must make a final recommendation supported by legal and ethical theories as well as your stated assumptions. ETHICAL DILEMMA #3 The price inflation that afflicted the United States during the 1970's had definite consequences for the Orkin Exterminating Company. From 1966 until 1975, Orkin had offered its customers contracts for "lifetime" termite protection control. These contracts said that this guarantee would remain in effect for the lifetime of the covered structure so long as the customer continued to pay the annual renewal fee. After increasing costs apparently made the contracts too expensive, Orkin decided that it had to get out of them. In 1980, therefore, the firm began notifying its 1966-75 "lifetime" customers that it was going to increase its annual renewal fees by about 40 percent. Despite many complaints, most customers accepted the increase. One reason that they caved in was that signing on with Orkin's competitors often left them no better off than under Orkin's revised plan. Also, Orkin instituted an "accommodation program" in which it explained its changed position to complaining customers, thereby mollifying some of them. Although a few persistent customers did escape the rate increase through the program, most complaining customers were not made aware of this possibility. Please discuss the ethical and legal implications of Orkin's behavior. Your initial post should be submitted as an essay. Depending on the succinctness of your writing style, five to eight sentences should be necessary to fully explore the issues raised
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