Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN: 9781337485913
Author: BROOKS
Publisher: Cengage
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The Department of Education called the attention of LBC (Luzon Brokerage Movement) management for showing a commercial that encouraged wrong spelling among children. In a spelling bee contest, the emcee played by Edu Manzano called the contestants to spell remittance, affordable, and instant. They spelled out "LBC" instead. DepEd said that the commercial was encouraging wrong spelling of words.
What is the social responsibility of entrepreneurs or advertisers to customers based on the example given above?
Piracy, however, is the direct copy of a company’s product and is unethical. Piracy is most prevalent in the video, music, perfume, and designer clothing industries, and is not a replacement for new-product development.
Think about and discuss:
Does the AMA Statement of Ethics address this issue? Go to
ama.org/codesofconduct
and review the statement. Then write a paragraph on what the AMA Statement of Ethics contains that might relate to knock-off products.
Widget Corporation is the manufacturer of many popular children’s toys but have seen a great decrease in sales and the board of directors is worried that the business may no longer be viable. The board decides to aggressively sue other toy manufacturers that have likely been infringing on Widget’s intellectual property, enter into a joint venture with a another company to build a new factory to reduce costs, and make large and notable donations to children hospitals as part of a PR campaign to raise the corporation's image. Additionally, the board decides to start manufacturing medical equipment to make up for the projected shortfalls in budget, even though the corporation was formed to make toys. Some shareholders are upset and sue the board of directors.
b) Would the ultra vires doctrine play a role in the shareholders suit again the board? Why or why not?
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