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Sunbeam Ethical Analysis

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Table of Contents
Page No.
Executive Summary 2
Introduction 3
Restructures in Sunbeam 3
Turnaround at Sunbeam 5
Accounting Practices at Sunbeam Corporation 5
Accusations 5
Key Players in Sunbeam’s Scandal 6
Unethical Behaviours 7
Ethical Analysis 7 Stakeholder Theory 7 Deontological Theory 7 Shareholder Theory 7 Utilitarianism Theory 7
Reference 9

Executive Summary
This report is based on Sunbeam Corporation and Albert Dunlap, the CEO from 1996 till 1988. In July of 1996, Michael Price and Michael Steinhardt hired Dunlap as the CEO and chairman of the board for Sunbeam Corporation. As the …show more content…

They renamed it Sunbeam-Oster Company. Later on, Kazarian was forced out of his chairman position and out of the company. Sunbeam relocated to Florida and purchased the consumer products units of De Vilbiss Health Care. In 1994 Sunbeam-Oster acquired Rubbermaid’s out-door furniture business. The company changed its name back to Sunbeam Corporation in 1995. By 1996 Sunbeam had more than 12,000 stock units, 12,000 employees as well as 26 factories, 61 warehouse and six headquarters. Despite this, the company’s earning had significantly declined by 83% and its stocks were 52% down. Therefore, Sunbeam needed help.
Restructures in Sunbeam
Prior to his appointment, Dunlap had acquired a reputation as one of the country’s toughest executives as well as nicknames like “Chainsaw Al”, “Rambo in Pinstripes”, and “The Shredder” because he eliminated thousands of jobs while restructuring financially troubled companies. His reputation and business philosophy were recognized throughout the world. Later in his career, Dunlap authored a book outlining his strategy, entitled Mean Business, in which he highlights four simple rules of business. They are as follows:
1. Get the right management team. As Dunlap assumes office, he retained only one senior executive from Sunbeam’s old management team. Dunlap first hire was Russ Kersh, a former employee of Dunlap, as executive vice president of Finance & Admin. The new management team also

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