CASE 4.

LETTING THE FAMILY IN

1. Has Carmine been unethical in his conduct? What is your reasoning?

Carmine has been unethical in his conduct. Ethics apply to businesses as well
personal behavior. An ethical business not only abides by laws and appropriate
regulations, it operates honestly, competes fairly and creates partnerships. In other
words, it keeps the best interest of all stakeholders at the forefront of all decisions.
Honest communication to all stakeholders internally and externally.
.

2. Is it ethical for Carmine to tell his other relatives the good news? Why or why
not?

No. because to maintain an effective working environment, treat others with

fairness and respect, and must maintain the highest standards of personal integrity.

3. If you were advising Carmine, what would you tell him? Why?

Carmine should conduct a conference to all investors to disclose his plans and
let others share their ideas and opinions. It also means giving respect whatever the
decision will be made. Transparency and trust is very essential for a successful
operation of a business. Transparency is also the organization being upfront and
visible about the actions it takes, and whether those actions are consistent with its
values.
CASE 4.2

A FRIEND FOR LIFE

1. Is the recommendation of the marketing vice president legal? Why or why

not?

No, because in a business although it is said to be “profit oriented” it should

not also forget the consumers. Customer satisfaction is not only derived from the
customer’s purchase experience with the company, but from the customer’s
evaluation of the company’s image. Doing more than the minimum is part of
establishing and maintaining the highest ethical standards.

2. Would it be ethical if the firm used the less-expensive simulated fur but did
not change its slogan of “A Friend for Life” and did not tell the buyer about
the change in the production process? Why or why not?

No, because it is an ethical obligation of each company to provide

consumers a product with what they pay for and that is not deceptive. That’s why
advertising and product labeling are both very important because it is
the potential customer’s primary source of information, and companies have
responsibilities to everyone that could be harmed by their advertising. They must
also be honest to maintain good integrity.

3. If you were advising Paula, what would you recommend?

Since the product has high demand in the market they can still produce an
original simulated fur. They can increase the price without

They can still produce using the original simulated fur. Since the product has
high demand in the market, they can increase into a reasonable selling price in
order to gain profit. Customers are willing to buy an expensive product if it has
superior quality. Aside from gaining profit, the company will also protect its
reputation by producing a high quality product that will lasts for years. Then the
slogan “A Friend for Life” is appropriate for the product. In this regard, the trust of
the customer to the company will be established and surely the business will have
sustainable and successful operation. To build long-term business, it is essential to
retain people once they have become customers. Remember that customer is the
bloodline of a business and customer satisfaction and trust are very important in
establishing a business.