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Read the short case




Read the short case, Advertising, on p. 250 of Managing Business Ethics.;Develop a strategy for dealing with the described ethical dilemma.;Post a 150- to 300-word business memo to senior management analyzing and explaining the dilemma and your strategy for solving the ethical dilemma.;CONFLICT OF INTEREST;Big Company is a large manufacturer of health-care products that is under fire from;the government to lower costs. Big Company has an excellent reputation and is widely;acknowledged as one of the best managed companies in the country. In spite of its reputation;however, Wall Street has reacted negatively to government efforts to reform;the health-care industry as a whole, and Big Company?s stock price has lost 30 percent;of its value in the last year. To counter the effect of possible government intervention;Big Company has just purchased Little Company, a discount health-care;supplier. Wall Street has greeted the acquisition with enthusiasm, and Big Company?s;stock price has rebounded by more than 10 percent since news of the acquisition was;made public.;While this acquisition could provide Big Company with a foothold in a growing;part of the health-care industry, a real problem lies in the mission of Little Company.;Little has made its reputation by providing objective health-care advice to its;customers. Now that it?s owned by Big Company, customers have expressed doubts;about how objective Little can be in recommending health-care products if it?s;owned by a health-care giant. Will Little Company be pressured to recommend the;products offered by Big Company, its parent? Or will Little Company?s advice;remain objective?;As the senior executive charged with bringing Little Company into the corporate;fold, how do you proceed? What are your obligations to Big Company, Little Company;and the customers of both? What do you owe to shareholders and the financial;community? Are there other stakeholders, and what do you owe to them? What provisions;would you include in an ethics code for Little Company?


Paper#31859 | Written in 18-Jul-2015

Price : $27