Académique Documents
Professionnel Documents
Culture Documents
Prepared For
Md. Shariful Alam.
Assistant Professor.
School of Business & Economics, UIU.
Prepared By
Sharmen Afroz Nepun
ID: 111 122 255.
SL No: 17.
School of Business & Economics, UIU.
Date of Submission
24th March, 2016.
UNITED INTERNATIONAL
UNIVERSITY
CHAPTER OBJECTIVES
To provide an overview of
regulatory efforts to provide
incentives for ethical behavior
CHAPTER OUTLINE
Managing Ethical Risk Through
Mandated and Voluntary Programs
Mandated Requirements for
Legal Compliance
Laws Regulating Competition
Laws Protecting Consumers
Laws Promoting Equity and Safety
Laws Protecting the Environment
Cost of Compliance
Laws That Encourage Ethical Conduct
Federal Sentencing
Guidelines for Organizations
Highly Appropriate Core Practices
Philanthropic Contributions
Strategic Philanthropy
AN ETHICAL
DILEMMA*
Myron had just graduated from West
Coast University with both
chemistrypharmacy and business
degrees and was excited to work for
Producto International (PI). He loved
having the opportunity to discover
medicinal products around the world.
His wife, Quan, was also enthusiastic
about her job as an importexport
agent for a subsidiary of PI.
QUESTIONS EXERCISES
1. Identify the social
responsibility issues in this
scenario.
2. Discuss the advantages
and disadvantages of each
decision that Myron could
make.
3. Discuss the issue of
marketing products that
are legal but have
addictive properties
associated with them.
*This case is strictly
hypothetical; any resemblance
to real persons, companies, or
situations is coincidental.
Ans: The social responsibility issues in this scenario are whether or not Producto International
(PI) should continue selling products that are addictive.Such as betel products because people
who chew betel nuts and smoke are 90 times more likely to develop oral cancer than non users.
Similar to the betel nut, PI wanted to sell a plant called Khat which is typically chewed like
tobacco, and produces a mild cocaine or amphetamine like euphoria.The DEA in the United
States, classified khat as a schedule IV substance because it had bad health effects. Thus, the
apparent social issue is whether or not it is OK to sell a product that is harmful to human health.
Selling products to anyone in any country that has negative effects on the health of the users is
socially, morally, and ethically wrong.
Q-2: Discuss the advantages and disadvantages of each decision that Myron
could make.
Ans: The advantages would be that Myron would financially benefit from moving and accepting
the promotion that David was offering him. Myron and his wife would triple their salary and
would be closer to family. Myron would also gain valuable experience in marketing the new
product into new markets that the company was expanding in. From a business perspective
Myron would gain a lot, however the products that he would be selling is not ethically right.
The disadvantages are that Myron is marketing and selling products that he knows have adverse
side effects on people that use them. At some point, Myron will reflect on his career and after all
the effects have taken its toll on the people that have used the products that he introduced in
markets all around the world.
Q-3: Discuss the issue of marketing products that are legal but have addictive
properties.
Ans: Marketing products that are legal, yet have addictive properties should be regulated by the
FDA (Food and Drug Administration). Companies that produce and sell these products sell them
with the knowledge of what the effects are going to be on the people that consume or use the
products. They try to hide the negative side effects and they will not take any responsibility for
the health issues that caused as a result of using their products. These companies are more
concerned with profits, rather than whats right for the people that use their products. I believe
that any products that have deemed to have addictive properties should be regulated by the FDA;
they clearly are the most appropriate agency to handle this task.