Exam 2: Business and Its Ethical Dilemmas

What was a similarity between the culture of Goldman and Penn State?

Valeant was able to make money by:

BP's earnings were not affected by the Deepwater Horizon spill .

Raymond Randall is an attorney with the Federal Trade Commission. A 19-year veteran with the agency, Mr. Randall was known as a good trial attorney. The FTC charged William Farley, the chairman of Fruit of the Loom, Inc., with violations of the reporting provisions of the Hart-Scott-Rodino Act, when he purchased shares of West Point-Pepperell Corporations prior to a Fruit of the Loom takeover bid. The Hart-Scott-Rodino Act requires investors to notify the government when their holdings in a firm pass $15 million. The FTC sought a fine of $10,000 per day against Mr. Farley, for a total of $910,000. Mr. Farley did notify the FTC once Fruit of the Loom made its decision to acquire West Point-Pepperell. Randall was assigned the Farley case. The FTC took a position of refusing to disclose to Farley and his attorneys documents relating to the case. Mr. Randall felt that the documents pointed to weaknesses in the FTC case and supported Mr. Farley's point that he notified the FTC once the takeover position was announced. Mr. Randall leaked the documents to Mr. Farley's lawyer. Mr. Farley's lawyers were concerned that they should not be in possession of government documents returned the documents and resigned from the case because they had seen the documents. Mr. Farley's new attorneys went to court demanding production of the documents. The documents were ordered produced by the court. When the FTC refused to produce them, the case against Mr. Farley was dismissed by a federal district judge. a.Did Mr. Randall do the right thing in disclosing the documents to Farley's attorneys? b.Did Mr. Farley's lawyers do the right thing in returning the documents to the FTC?

BP had unaddressed safety violations at the time of the Texas City Refinery explosion.

During a recognition event Jesse Stevens, a manager in a large corporation, chose to forego the corporation's usual pizza vendor and placed an order with a more expensive pizza vendor with whom he has a personal friendship. When one of Jesse's employees asked about the new vendor, Jesse said, "Everyone does this kind of thing. Might as well help your friends out when you can." Explain Jesse's position on ethics in business.

Who said a corporation has no conscience?

The figures in Greek tragedies are victims of hubris.

A focus on the trappings of success causes leaders to lose their way.

Goldman changed its status in 2008 to come under Federal Reserve regulation.

Which of the following is an example Albert Carr uses to illustrate bluffing?

Isolation and lack of dissenting views contribute to the Bathsheba Syndrome in leaders.

Which of the following are not public relations statements made when an executive leaves a company?

Goldman Sach's deal put together for Mr. Paulson:

BP's market capitalization was not affected by the Deepwater Horizon spill.

Albert Carr believes that it is unethical for a manager to make a donation to the political campaign of a candidate a customer is supporting unless the manager supports that candidate personally.

BP had no way of knowing about the evolving issues at Deepwater Horizon.

Albert Carr believes that an executive who dyes his hair in order to appear younger for a job interview has committed an ethical breach.

Goldman's Internet IPOs were allocated openly.

Westside Exterminating specializes in termite inspection and treatments for homes and buildings. Westside's contract guarantees that the Westside termite treatment will keep "your property termite-free for five years." The Richards had Westside treat their property. After one year, the Richards discovered that there were termites in their trees. They called Westside and requested help with the trees. Westside explained that "Property" covers structures, but not the yard, plants, and trees. The Richards did not understand that limitation. Westside says, "We lose a customer here and there once they find out about the "property" limitation, but we just keep signing people up and continue to make money." Which theory of business ethics does Westside follow?