Scenario

You have been hired by John and Ann Applewood as a legal assistant in light of the legal issues their company is facing. They would like you to develop a legal memorandum to help the company move forward.

Mountain Top View Inc.: Company History

A few years ago, based on their love of the outdoors, John and Ann Applewood started a small outdoor-equipment business called Mountain Top View Inc. The company has expanded so rapidly over the past few years that it is now a publicly traded corporation.

The corporate world has been challenging for John and Ann to adapt to. As the company does a lot of business online, technology use and functionality has been a major challenge. John and Ann recently hired a new CIO, Steve, to manage the website and technology aspects. The financial element was also a challenge, and John and Ann recently hired Victor as their CFO to manage financial aspects.

One morning when the owner John comes in, he hears from his CIO that the customer database information was hacked. This data breach impacted customers who ordered products online. Many customers had their names, addresses, and phone numbers stolen. John and Ann know that they should let customers know, but they are also concerned about potentially bad publicity associated with this issue.

One afternoon, Steve learns of a confidential merger that is taking place soon between Mountain Top View Inc. and a major chain outdoor company. Knowing that the stock price will increase significantly, he tells Victor about the merger over lunch and encourages him to purchase shares before information about the merger goes public. Both Steve and Victor buy 2,000 shares in company stock the day before the merger. The janitor overhears them discussing the scheme and alerts the authorities, accusing the men of insider trading.

In addition, a lawsuit has been filed for negligence and products liability against Mountain Top View Inc. for damages. A customer was injured and had to have his arm amputated after rock climbing while using equipment from Mountain Top View Inc. He claims that the line snapped and caused him to fall, and that his injury was due to faulty equipment.

Directions

-Discusses strengths and weaknesses ofethical tests and theoriesfor identifying potential gaps in a company's ethical practices for future initiatives

-Recommendscorporate responsibility best practicesthat can help a company move forward in its future initiatives; considers how the recommended practices would help a company prevent legal and ethical issues from occurring in the future

-Recommends anethical theorythat a company might consider adapting for informing its future operations; discusses specific implications for advancement in technology and addresses why the recommended theory would be a good approach for the company.