What if, after you say no, the agent goes to your vice president, who provides the money? What do you do and explain why?
5 ESSAY QUESTIONS (20 points each)
INSTRUCTIONS: Please discuss each of the following questions using both concept- based reasoning and detailed analysis with regards to why you are drawing any and / or all conclusions that you do.
1.) Ralph has been an investment banker with Shark and Co. for several years. One of his clients, Doggy Dan Co. wants to go public. Doggy Dan Co. is a major supplier of medical equipment to veterinarians. As Ralph promotes Doggy Dan Co. to initial prospects, he finds out that a number of years ago a series of Doggy Dan Co. products caused a number of animal deaths. Doggy Dan Co. investigated the matter and concluded that the vets had improperly used the equipment. Some of the reports that Ralph has studied, point to more recent animal deaths. Such information could depress the initial public offering (IPO) scheduled for tomorrow and future events with the stock as well. Discuss and analyze what Ralph’s choices are and what he should do from an ethical perspective using the stakeholder orientation model.
2. (a) You are a project manager for a company making a major proposal to a Middle Eastern country. Your major competition is from Japan. Your local agent, who is closely tied to a very influential sheik, would receive a 10 percent commission if the proposal were accepted. Near the date for decision the agent asks you for $100,000 to grease the skids so that your proposal is accepted. What do you do and explain why.
(b) What if, after you say no, the agent goes to your vice president, who provides the money? What do you do and explain why?
(c) Your overseas operation learns that most other foreign companies in this Middle Eastern area bolster their business by exchanging currency on the gray market. You discover that your division is twice as profitable as budgeted due to the amount of domestic currency you have received on the gray market. What do you do and explain why?
3.) Apollo Inc., a publicly held corporation, has assets of $100 million and annual earnings in the range of $13–$15 million. Apollo owns three aluminum plants, which are profitable, and one plastics plant, which is losing $4 million a year. The plastics plant shows no sign of ever becoming profitable, because of its very high operating costs; and there is no evidence that the plant and the underlying real estate will increase in value. Apollo, Inc. decides to sell the plastics plant. The only bidder for the plant is Oliver, who intends to use the plant for a new purpose, to introduce automation, and to replace all present employees. Would it be ethical for Apollo Inc. to turn down Oliver’s bid and keep the plastics plant operating indefinitely, for the purpose of preserving the employees’ jobs? Discuss and use analysis as the basis for your answer based on concepts studied during this course.
4. How do societal expectations affect corporations and their ethical initiatives? Give an actual real business world example of a company that had to alter a product or service because of society’s concerns about its health, moral, and social impacts. Further, what various stakeholders were impacted and what type of ethical leadership did those executives responsible for decision making in the organization exhibit?
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