Ethics+&+Issues

Ethics & Issues

November 3, 2011

Chapter 5 - Whistle-Blowers: Whistle-blowers are employees who report illegal or unethical practices. Major companies encourage their workers to report wrong doings because this would prevent future corruption in the corporation or business. Usually, companies establish 24 hour hotlines for anonymous reporting to enforce strict regulations. International companies often have trouble with the establishment of whistle-blowers because it goes against the beliefs of some countries. Germany for example doesn't like the idea of whistle-blowers because it reminds them of the more superior power, the East German Secret Police.

November 11, 2011

Chapter 6 - Developing Nations:

The World Bank provides approximately $20 billion every year for international development. The bank used the knowledge and resources fo the more advanced countries to assist the less advance countries. The United States if the largest contributor to the World Bank, which provides money for debt relief, loans, poverty and hunger relief, health and social services, technical assistance, environmental protection and education. The U.S. workers indirectly contribute to international development through taxes. This transform underdeveloped countries to industrialized countries. For example, countries like South Korea, Thailand, Morrocco, and the Czech Republic have all turned to the World Bank at one point.

November 21, 2011 Chapter 7 - Competitive Devaluation

I think that the IMF should be able to control the way a country's central bank values its currency. Currency is changing daily and if the value of the currency continues to drop then this would lead to inflation. The IMF should be able to intervene and put a stop to it because this would affect the economy of the world and not just individual countries. By lowering the value of the currency, the country is maintaining their partners and possible gaining partners but they are trading for a very low profit rate. Therefore, they have to charge the natives of the country more money to make up for the loss. This isn't not right because then the foreign countries would be making more money because the people are not buying the expensive domestic products but they are buying the cheaper imported goods. This is only promoting sales for the partnering companies instead of the domestic company.

Chapter 8 - Social Enterpreneurship

Social enterpreneurship is combining business with goals to improve society. These enterpreneurs can help resolve problems regarding education, health, human rights, and workers' rights to provide economic opportunities for people in need. I think an enterpreneur may choose this type of business because this would be their perfect opportunity to give back to society. Enterpreneurs who have goals of helping others or even make a global difference might choose this form of business. I think this is a good occupation to look into because some of the money made would help the people in need and the people who are not capable of providing everything needed for him or herself and their family.

Chapter 10 - Truth in Labeling?

Some of the labeling on goods do not fully identify what the product contains. Recently, some food manufacturers asked the U.S. Congress to label a certain product "organic" when some of the ingredients it contains is not organic. This may lead to misleading packaging and short term profit gains. I have been mislead by a package/label of glue. It said on the package that is was super sticky and fast drying glue so I chose to use it on my art project. The glue costed more than the average liquid adhesive that one would usually use. This glue refused to dry and when it did dry, the paper that I glued together would fall apart if you accidentally bent it or handled it too hard. This does effect my opinion on the company to some extent because I used to love using their art supplies and now I am more careful of which brands I use.

Chapter 11 - The Real Things?

Well known brand names are protected by copyright laws in the U.S. but in other countries there are few laws about copyright that exist. Pricey brands like Nike, Apple Computers, Coach, Uggs and other brands may be counterfeited and sold at a high price for a large profit. It is not ethical to "steal" brand names because people had to take time and effort to build their business and careers to a strong point where it is well known and easily recognized from people all around the world. The U.S. government should discuss with other countries a foreign country about this piracy because if this continues, tensions may rise and this will damage the trading relationship between the foreign nations.

Chapter 12 - Price Skimming

When a new product come out, people are usually rushing towards the doors to be some of the first few to get their hands onto the new products. This allows companies to charge a sky-rocketing prices. Once the trends ends, companies will lower the cost, hoping to attract the consumers once again. I think that price skimming is not ethical because companies are taking advantage of their consumers. People sometimes spend too much on what they want not what they need and for companies to see this as an opportunity to gain lots of profit before the market slows down or if the worse scenario happens, it might even stop completely. This is not fair to the consumers and one day they might just stop buying the products right when they come out and just wait til it is out of the trend.