Minggu, 10 Januari 2010

CASE 11.3
Giving And Spending The United Way
The united way, wich envolved from the local community chests of the 1920s, is a national organization that funnels funding to charities through a payroll deduction system. Ninety percent of all charitable payroll deductionsin 1991 were for the united way. This system, however has been criticized as coercive. Bonuses, president of united way commented,”if participation is 100 percent, it means someone has been coerced.”
When Aramony’s expenses and salry became public, Aramony resigned after fifteen chapters of the United Way threatened to withhold their annual dues to the national office. In August 1992, the United Way board of directors hired Elaine Chao, the peace Corps Director, to replace William Aramony at a salary of $195.000, with no perks. She reduce staff from 275 to 185 and borrowed $1,5 million to compensate for a decline in donations. Ms. Chao has since left the United Way and has served as secretary of labor for the Bush administration since 2001.
In September 1994, William Aramony and two other United Way officers, including the chief financial officer, were indected by a federal grand jury for conspiracy, mail fraud, and tax fraud. On april 3, 1995, Aramony was found guilty of twenty five count of fraud, conspiracy, and money laundering. Two other United Way executives were also convicted. Mr.Aramony was sentenced to eighty-four months in prison(and fined $300.000) and was released in 2004. In this chapter told nonprofit and management, the conduct of Mr. William aramony is unethical he take the benefit for him self but that could be damage for the company.
Often with nonprofits, the problem is not fraud by the organization it’s fraud by misconduct or missteps with the organization. Whether because of inexperience, the need for flexibility in management, or just as with companies the drive for success and result, there have been some ethical issues that have proven costly for the nonprofit organization.
CASE 10. 14
Officials Who Sell Public Records: Is There a Problem?
Clark County Recorder Frances Deane has been indicted by State of Nevada on nineteen felony counts, including misconduct of public officer, fraudulent appropriation of property, theft and unlawful commissions, personal profit, and compensation of public officers. Ms. Deane is accused of copying public land records to sell to businesspeople who planned to create a title plant that would be far less expensive for others to use than the million- dollar access fees charged to those who wish to join and use the resources of title companies title service.
In exchange for providing the copied public land records, Ms.Deane is alleged to have received cash payments. Gekko testified on witness stand that Ms.Deane explained her decision to copy the record and take the cash as follows:” I’m not going to get re-elected, so it’s time for me to get a piece like every one else.” Ms. Deane, through her lawyer, stipulated to action by Nevada Ethics Commission a resolution that permitted her to keep her position. A state removed Ms.Deane from her position as recorder until the trial on the felony counts was completed.
Unlimited sources of funds often is used to justify behavior. In Government contracts the supply of funds seems endless and the competition is thiff. The benefit and pressures often cause poor resolutions of ethical dilemmas.

Sabtu, 09 Januari 2010

Case 9.5
Tylenol: the product and its packaging safety
Twenty-three-year-old Diane Elsroth died after taking a Tylenol capsule laced with cyanide. Within five days of her death, more people died from taking tainted Tylenol purchased from stores in the Chicago area. After the Chicago poisonings which were never solved, McNeil and Johnson & Johnson executive were told at a meeting that processes for sealing the capsules had been greatly improved, but no one could give the assurance that they were tamperproof. The capsule form of the pain reliever represented 30 percent of Tylenol. Tylenol in capsule form worked faster than Tylenol in tablets.
Jim Burke, CEO of Johson & Johson told the others that without a tamperproof package for the capsules, they would risk the survival not only Tylenol but also Johnson & Johson. The executive decided to abandon the capsule . Frank Young, a food and Drug Administration commissioner, stated at the time, “This is a matter of Johnson & Johnson’s own business judgement, and represents a responsible action under though circumstanes.
Johnson & Johnson quickly developed “caplets”-tablets in the shape of a capsule then offered consumers a coupon for a bottle of the new caplets if they turned in their capsules. Within five day of the announcement of the capsule recall and caplets offer 200,000 consumers had responded . Johnson & Johnson had eliminated a key product in its line, one that customers clearly preferred in the interest of safety.
Within one year of the Tylenol poisonings, Johnson & Johnson regained its 40 percent market share for tylenol. However it is interesting to note that McNeilwas able to have its new product and packaging on the shelves within weeks of the fatal incidents. There had been some preparation for the change prior to the facilities, but the tragedy was the motivation for the change to safer packaging and product forms. Tylenol is a stunding source of revenue for McNeil and Johnson & Johnson, with revenue totals growing at double-digit rates as Tylenol expands market presence into 5,000 convenience stores with new and smaller packaging of its product and its new formulassuch as Tylenol PM. In 1997, Tylenol added a new label to its infant Tylenol “Taking more than the recommended dose… could cause serious health risks” because of liver damage in children. From this chapter we know that only the manufacturer knows the result of its safety tests on a product, only the manufacturer can correct defects or recall dangerous products. Product liability represents one of the issues at the heart of ethical and socially responsible behavior for business.
CASE 8.5
Kraft, Barney Rubble, and Shrek
Kraft Foods has decided to ban certain food ads from children’s, websites for kraft foods. Kraft has created a group of outside independent advisers who analyzed the company website and found games for children involving Barney Rubble and Shrek that led the kids to chases for kraft products such as ChipsAnoy, Lunchables, and Kool-Aid. Kraft agreed to pull the ads from the web because Professor Ellen Wartella, dean the college of Communication at University of Texas at Austin, called the web ads “indefensible”. The ads were placed in children’s TV and radio programs. Kraft does market “healthier” product to children between the ages of six and twelve. Kraft also uses cartoon characters on its products such as Sponge Bob on its crackers and Dora the Explorer on Teddy Grahams cookies.
About eighteen months after kraft heeded the advice of his advisory board and made change, eleven united state companies, including kraft, announced that the they would put stricter controls on their advertisement product for children. The companies participating in the voluntary initiative that are:
• Kraft
• McDonald’s
• Pepsi,Co
• Coca-Cola
• General Mills
• Campbell’s
• Cadbury Adam’s
• Kellogg’s
• Hershey’s
• Mars, Inc
• Unilever
The companies take the control different form, for example pepsico and coke will eliminate ads at elementary schools. Pepsico is also eliminating ads at middle schools. The chairman of the federal trade commission praised the group for their voluntary action. However, members of conggress indicated that the media outlets, including the cartoon Network and Nickelodeon, also needed to step forward with volutary steps.
CASE 7.4
Product Dumping
This chapter tell us about conflicts between the corporation’s ethics and business practices in foreign countries. Once the Consumer Product Safety Commission forbids the sale of a particular product in the United State, a manufacturer can no longer sell the product to U.S. However the product can be sold in other countries that haven’t forbids its sell. For example, Great Britian outlawed the sale of recipe sleeping pill Halcion, but sales of the drug continue in the U.S. The British medical community attain conclusions regarding the pill’s safety that different from the conclusions attain by medical community and the food and drug administration.
Although some manufacturers had already turned to four-wheel models, other manufacturer still had inventories of three-wheel cycles. In 1998 in the united state the consumer product safety commission outlawed the sale three-wheel all terrain cycles. However, after the three-wheel product was banned outlawed vehicle could be sold outside the united state. For many companies, chaos follow the product recall because inventory of the recalled product may be high. The firm, often decide whether the product dump in other countries or to take detriment earnings, stock prices and employment stability. I think the product never mind if the firm want to sell in other countries, which that counties permit to sell the product.
CASE 6.9
Whole Foods But Not Full Disclosure
This chapter tell us about the CEO of whole foods John Mackey, using the name of whole foods Rahodeb (that’s was her wife’s name Deborah, with each syllable arranged in backwards order). Message in the chat room were dedicated to stock trading posted over 1000, the message were praising to whole foods (even of message for Mackey himself “I like Mackey’s haircut. I think he looks cute”). The company whole foods was trying to get even as anonymous postings continued because the postings were also negative about wild oats. On february 24, 2005 Mackey posted the following about Wild oats CEO perry Odak. He was specifically active during that time, he has posted seventeen messages on september5, 2005, and another seventeen on november 11, 2005 with plenty of postings on the days in between.
When John Mackey was discovered his identity, he apologized and he stop to postings. The postings made by Mackey have been collected by federal trade commission then show to allow the merger with wild oats would reduce competition in the market place. The idetity of Rahodeb became to the public after the FTC filing. The FTC loss its challenge to the judical approval of the whole foods and wild oats merger, unless the U.S supreme court decides to take up the case. Thi chapter I think is unethical, John Mackey to get her personal ambition by wrong way.

Kamis, 07 Januari 2010

Activities in my Life about Ethics are Right and Wrong
Wrong activities:
1. Misunderstanding, I think it’s very difficult for me to don’t it. For example when I’m was in the lonely place and there are somebody observe me, at that time I was suspected that somebody wants to rob me or the other thing will be happen for me. This condition may be will happen or no, sometimes this is just my feeling that somebody observed at me, in right condition that isn’t happen and I have suspected the other people. This is ethics, sometimes I feel I done something right but without unconscious I had suspect somebody about something that he didn’t do it .
2. I often don’t prayer in the exact time, when time to prayer became best for us to pray at that time besides we got more merit it can be makes us to be a discipline. Its happen sometimes when I was sleep or while I’m doing something.
3. I dislike people command me to do something which that’s thing don’t interest me to do that.
4. Gossip, without unconscious we have talked about the other people although it right happen. It sometimes happen when I meet with my friend.
5. When I feel lazy to make the homework or I don’t know how to do my homework I ask for my friend to lend me her homework.
Right activities:
1. God willing still now I don’t forget and always do my parents suggestion a lot of it are: don’t forget to pray and ask for the God for his instruction in this life, I must to study hard to get my dream come true and I must to keep my behavior that don’t make my parent was shy.
2. When I have holiday I always visit my family.
3. If my friend ask me some help likes to lend her a money or a book and etc, I will give if I have it.
4. Don’t disturb the other people activities for example don’t speak loundly when some of our friend was studying in chamber or sleeping.
5. When my friend discussion something about her problem to me, I listen it accurately and I don’t speak while my friend talking something for me, If I want to speaks something I wait untill she finished speaks about her problem.
4B
TAKING ADVANTAGE
The ethical category of taking unfair advantage is one in which one party has a superior bargaining, knowledge, information, or power position and uses it to cause the other side to lose something in the process. Sometimes parties take advantage of others just by their philanthropic position. Their goodness in cause is used to justify unfairness in treatment.

CASE 4.9
The Ethics of Peer-to-Peer File Sharing
Peer-to-peer file sharing came about through the efforts of Shawn Fanning and his Napster website and programs. Napster website program user could free of charge, download recoding via the Internet through process known as ripping, which is the downloading of digital MP3 files. When technology afforded a quality and fast recording, the customers responded with widespread use of the system.
When the music writers, produers, and artists became aware of the Napster system the companies filed copyright Infrigement suits against Napster. Mike Stoller, a song writer also filed suit against Napster and wrote in an oponion piece for New York Times:
I fear for the 17 year old songwriter looking forward to a career in the music business today.
Napster and companies like it aren’t only thretening my retirement, but the future musicit self.
By taking incentive out of songwriting, Napster may be pushing it self closer to a time when there won’t be any songs for its users to swap.
The controversy over Napster created fierce media and congressional battles among and between artists, fans, and music companies. Recording artists and record companies called peer-to-peer file sharing nothing more than copyright infringement. “It’s a technology no one anticipated and the law doesn’t apply” was observation of one legal expert.
Other artists were busily establishing Internet strategies. Lance bass, of the teen band “N Sync, developed strategies for digital music. By participating in teen chat room, Bass learns wich songs his fans take a liking to and has been selling his song over the Internet. He makes about $1 per CD sold because the record companies have monopolies on distribution and spend large amounts on marketing.
Napster filed suit against by using trademark without authorization for infringement, seeking an injunction as well as damages. When the record companies filed filed suit against Napster, the district court granted a preliminary injunction to the plaintiffs enjoining Napster from “engaging in, or facilitating others in copying, downloading, uploading, transmitting, or distributing plaintiffs copyrighted musical compositions and sound recordings, protected by either federal or state law, without express permission of the rights owner”. Napster was eventually shut down by federal court. Several interim steps were taken as the companies tried to get their songs deregistered.
The Recording Industry Association of America (RIIA) began an aggressive enforcement policy of filling suit against those who are engaged in significant amounts of downloading. These individual have resulted in settlements.
Under the deal, the students have unlimited rights to listen to music on up to there personal computers as long as they are still students Penn State. If they want to download the songs, it will cost $0,99 per song. The university will pay for the Napster service out of the $160 technology fee the students pay each year.

Jumat, 01 Januari 2010

NASA And the Space Shuttle Booster Rockets

CASE 5.19
NASA And the Space Shuttle Booster Rockets
Morton Thiokol, Icn., is an aerospace company, manufacture the solid-propellant rocket motor for Peacekeeper missile and the missiles on Trident nuclear submarines. Thiokol also worked carefully with National Aeronaustics and Space Administration (NASA) in developing the challenger, one of NASA’s reusable space shuttles.
Morton Thiokol operated as manufacturer for booster used to launch the challenger. NASA had a special launch scheduled of the challenger for January 1986, the launch was highly publicized because NASA had conducted a nationwide search for a teacher to send on the flight.
On the scheduled launch day, January 28, 1986, the weather was cloudy and cold, the launch had already been delayed several times, but NASA official still contacted Thiokol engineers in Utah to discuss weather the shuttle should be launched in such cold weather. In Thiokol’s contract with NASA the temperature was between 400 F and 900 F. The temperature at Cape Canaveral at that January morning was below 300 F, the launch of challenger proceeded nevertheless.
Two of the Thiokol engineers involved in the launch, Allan Mcdonald and Roger Boisjoly, then testified that had opposed the launch. In October 1985, Boisjoly presented the O-ring issue at a conference of the society of Automotive Engineers and requested suggestion for resolution. On January 27, 1986 the day before the launch, Boisjoly attempted to halt the launch. Mr. McDonald also offered his insights to a NASA group and Thiokol engineer. However, Four Thiokol managers including Lund, voted unammously to recommend the launch. The managers then developed the following revised recommendation. Engineers were excluded from the final decision and the development of this findings.
After the decision was made, Boisjoly returned to his office and wrote in his journal “ He sincerelly hope this launch doesn’t result in a catastrophe. He personally don’t agree with some of statements made in Joe Kilminister’s (Kilminister was one of the four Thiokol managers who voted to recommend the launch)”.
The challenger launch at the low temperature caused the seals at the booster rocket joints to fail and exploded, killing Christa McAuliffe and the six astronauts on board. The challenger incident resulted more from human error than mechanical error. The decision to launch should have been referred to headquarters. Both Boisjoly and McDonald testified before the presidential panel regarding their opposition to the launch and decision of their managers to override their recommendation. Both Boisjoly and McDonald also testified that following their expressed opposition to the launch and their willingness to come forwar, they had been isolated from NASA and subsequently demoted. Currently, Mr.Boisjoly operates a consulting firm in Mesa, Arizona. He speaks frequently on business ethics to professional organizations and companies.