Business Values and Ethics Case Study Assignment - Qatar 2020
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Case Study
AI Summary
This document presents a comprehensive case study assignment on business values and ethics, covering various real-world scenarios. The assignment includes detailed analyses of cases involving corporate crises, workplace discrimination, employee absence, and corporate social responsibility. It explores ethical dilemmas faced by businesses, such as a company facing financial ruin and the ethical implications of a competitor's bid, workplace discrimination against a female manager, an employee's excessive absenteeism, and the ethical considerations surrounding a weight loss program's marketing. Each case is thoroughly examined with questions and answers, providing insights into ethical decision-making and the application of ethical principles. The assignment also includes guidelines, plagiarism policies, and references, offering a valuable resource for students studying business ethics. The document provides a structured approach to understanding and addressing ethical challenges in business environments.

©Al Tareeqah Management Studies - 2020 1
Business Values and Ethics
SBS MBA / MSc
Assignment - Qatar 2020
STUDENT ID
UNIT TITLE / CODE: ___________________________________________________
NAME (in Full): ___________________________________________________
GENERAL INSTRUCTIONS
● All assignments are to be submitted 10thApril 2020 on to
examinationboard@atmsedu.organd cc
toazrafatima@atmsedu.org,assignmentsubmission2019@gmail.com
● If assignment is not submitted on date, will follow with penalty of 10%
deduction of marks for everyday.
● Similarity between students work is strictly not accepted, any student
found with similar work will be graded Zero and fail for the course.
However, Plagiarism is an academic offence and will not be tolerated
underSBS
● Assignment once submitted to exam board is final formarking.
● Total 100marks
GUIDELINES FOR ASSIGNMENT
1. If assignment is Question & Answer basedthen.
Introduction is needed for eachquestion.
Question has to be answered based on the mark allotted for each
question with references if any idea or information is taken from
othersource.
2. If assignment is case basedthen,
Executive summary
Table ofcontent
Body of assignment (questions related to case need to beanswered)
Conclusion / Recommendation ifany
References (in-text + citation) to beused.
TotalMarks /100
Business Values and Ethics
SBS MBA / MSc
Assignment - Qatar 2020
STUDENT ID
UNIT TITLE / CODE: ___________________________________________________
NAME (in Full): ___________________________________________________
GENERAL INSTRUCTIONS
● All assignments are to be submitted 10thApril 2020 on to
examinationboard@atmsedu.organd cc
toazrafatima@atmsedu.org,assignmentsubmission2019@gmail.com
● If assignment is not submitted on date, will follow with penalty of 10%
deduction of marks for everyday.
● Similarity between students work is strictly not accepted, any student
found with similar work will be graded Zero and fail for the course.
However, Plagiarism is an academic offence and will not be tolerated
underSBS
● Assignment once submitted to exam board is final formarking.
● Total 100marks
GUIDELINES FOR ASSIGNMENT
1. If assignment is Question & Answer basedthen.
Introduction is needed for eachquestion.
Question has to be answered based on the mark allotted for each
question with references if any idea or information is taken from
othersource.
2. If assignment is case basedthen,
Executive summary
Table ofcontent
Body of assignment (questions related to case need to beanswered)
Conclusion / Recommendation ifany
References (in-text + citation) to beused.
TotalMarks /100
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2©Al Tareeqah Management Studies - 2020
PLAGIARISM
Plagiarism is a form of cheating, by representing someone else's work as
your own or using someone else's work (another student or author)
without acknowledging it with a reference. This is a serious breach of the
Academic Regulations and will be dealt with accordingly. Students found
to have plagiarised can be excluded from the program (Buys, Selander,
and Sun, 2019).
Plagiarism occurs whenever you do any of the following things without
acknowledging the original source:
Copyinformationfromanysource(includingthestudyguide,books,newspaper
s,theinternet)
Use another person's concepts or ideas
Summarise or paraphrase another person's work (Foltýnek, Meuschke, and Gipp,
2019).
How do I avoid plagiarism?
To ensure you are not plagiarising, you must acknowledge with a reference
whenever you:
use another person's ideas, opinions or theory
include any statistics, graphs or images that have been compiled or
created by another person or organization
Paraphrase another's written or spoken word (Masic, 2019).
What are the penalties?
The penalties for plagiarism are:
Deduction ofmarks,
A mark of zero for the assignment or the unit,or
Exclusion from theprogram.
Plagiarism is dealt with on a case-by-case basis and the penalties will
reflect the seriousness of the breach.
Please note: claiming that you were not aware of need to reference is
no excuse.
PLAGIARISM
Plagiarism is a form of cheating, by representing someone else's work as
your own or using someone else's work (another student or author)
without acknowledging it with a reference. This is a serious breach of the
Academic Regulations and will be dealt with accordingly. Students found
to have plagiarised can be excluded from the program (Buys, Selander,
and Sun, 2019).
Plagiarism occurs whenever you do any of the following things without
acknowledging the original source:
Copyinformationfromanysource(includingthestudyguide,books,newspaper
s,theinternet)
Use another person's concepts or ideas
Summarise or paraphrase another person's work (Foltýnek, Meuschke, and Gipp,
2019).
How do I avoid plagiarism?
To ensure you are not plagiarising, you must acknowledge with a reference
whenever you:
use another person's ideas, opinions or theory
include any statistics, graphs or images that have been compiled or
created by another person or organization
Paraphrase another's written or spoken word (Masic, 2019).
What are the penalties?
The penalties for plagiarism are:
Deduction ofmarks,
A mark of zero for the assignment or the unit,or
Exclusion from theprogram.
Plagiarism is dealt with on a case-by-case basis and the penalties will
reflect the seriousness of the breach.
Please note: claiming that you were not aware of need to reference is
no excuse.

3©Al Tareeqah Management Studies - 2020
Answer any 5 from the below. Each question
carries equal marks
Case Scenario I
You are running with a business since last many years. Over a period of time you
have very good corporate image in market. But unfortunately since last two
years your firm is passing through crisis. Your business is suffering from heavy
losses. You are planning to wind up your business. Meanwhile one big corporate
house has announced a big corporate deal through auction. You have also
decided to take part in that deal as it will be a last option for you to save your
business. On the day of auction, so many companies have participated for this
bid. Committee would declare the result after lunch break. You found the closed
envelope of your competitor’s bid during lunch break.
a) Will you be ethical in this situation? If yes how? And if no! Why?
In this scenario, I would assume that I'd see the competition offers as it's my only
opportunity to live. When my competitors offers allow me to save my company, I
would claim that is ethical for me because, according to the Theory of
Utilitarianism, the ethics centered on outcomes implies that a choice is ethical
that yields the best for the greater amount.
In that sense, I am saving myself, my family, and also many of the workers
working for my company, if my decision to get an auction lets me save my
business. If I fail and get up then I risk my company and may need to sell my
house and land in the storm.
b) If you be ethical, how you will survive your business.
I will save my business by having the lowest possible bid because I do not get
offers, but this choice leaves me in an incredibly slim role to sustain my business
when my organization is already facing a failure and social profile.
Therefore, I conclude that both concerns in this case have been addressed by my
A response (Kam, Hue, and Cheung, 2018).
Case Scenario II: Discrimination in the Workplace
Marian, a top graduate from Loyola in Humanities, was hired by a major
corporation into a management position. Marian finished the corporation's
management training program top in her group, and is performing above the
norm in her position. She is really enjoying her work.
As a woman she feels isolated, as there are no other women managers and few
women in her area. One night at a company party she heard a conversation
between two of her male co-workers and their supervisor. They were complaining
to him about Marian's lack of qualifications and her unpleasant personality. They
Answer any 5 from the below. Each question
carries equal marks
Case Scenario I
You are running with a business since last many years. Over a period of time you
have very good corporate image in market. But unfortunately since last two
years your firm is passing through crisis. Your business is suffering from heavy
losses. You are planning to wind up your business. Meanwhile one big corporate
house has announced a big corporate deal through auction. You have also
decided to take part in that deal as it will be a last option for you to save your
business. On the day of auction, so many companies have participated for this
bid. Committee would declare the result after lunch break. You found the closed
envelope of your competitor’s bid during lunch break.
a) Will you be ethical in this situation? If yes how? And if no! Why?
In this scenario, I would assume that I'd see the competition offers as it's my only
opportunity to live. When my competitors offers allow me to save my company, I
would claim that is ethical for me because, according to the Theory of
Utilitarianism, the ethics centered on outcomes implies that a choice is ethical
that yields the best for the greater amount.
In that sense, I am saving myself, my family, and also many of the workers
working for my company, if my decision to get an auction lets me save my
business. If I fail and get up then I risk my company and may need to sell my
house and land in the storm.
b) If you be ethical, how you will survive your business.
I will save my business by having the lowest possible bid because I do not get
offers, but this choice leaves me in an incredibly slim role to sustain my business
when my organization is already facing a failure and social profile.
Therefore, I conclude that both concerns in this case have been addressed by my
A response (Kam, Hue, and Cheung, 2018).
Case Scenario II: Discrimination in the Workplace
Marian, a top graduate from Loyola in Humanities, was hired by a major
corporation into a management position. Marian finished the corporation's
management training program top in her group, and is performing above the
norm in her position. She is really enjoying her work.
As a woman she feels isolated, as there are no other women managers and few
women in her area. One night at a company party she heard a conversation
between two of her male co-workers and their supervisor. They were complaining
to him about Marian's lack of qualifications and her unpleasant personality. They
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4©Al Tareeqah Management Studies - 2020
cursed affirmative action regulations for making the hiring of Marian necessary
(Withers, and Ebrahimpour, 2018).
Marian is very upset and wants to quit.
Questions:
a) Should Marian quit?
No, Marian's not meant to pause. Alternatively, she needs to confront the case.
Through management preparation she was a high producer in her party so she
can demonstrate the same ability by being well placed so delivering (Vickers,
2016).
b) Are her co-workers correct in their evaluation?
No, her colleagues in their estimation are not right. When she was recruited for
the role, Marian has ample qualifications. She still has no disagreeable
temperament, but with her male colleagues it is tough for her to speak up. Her
friends ought to support her manage the crisis.
c) Should Marian confront the co-workers?
Yeah, Marian needs to meet her colleagues. In your head, you have a incorrect
view of her. Marian needs to speak and explain stuff with them. It's also helping
her socialize with friends.
d) Should Marian file a discrimination suit?
No, the argument of prejudice will not be raised by Marian. Especially because of
her appearance and personal actions, she was underestimated at the office. She
will become more social and develop a friendship with her colleagues.
e) Should Marian go to the supervisor?
Marian will only be handled by the boss if she refuses to challenge her
counterpart effectively. The first move will be to do with the stuff from her side.
She might go to the boss if it did not work out.
f) What else could Marian do?
It ought to be a little social for Marian. Her male colleagues will speak to her. She
will drink coffee with them and chat about their ventures. She often may support
or ask for help in creating a relationship occasionally (Osorio, 2019).
Case Scenario III: Employee Absence
Joan, an employee of Great American Market, was warned about her excessive
absenteeism several times, both verbally and in writing. The written warning
included notice that "further violations will result in disciplinary actions,"
including suspension or discharge.
A short time after the written warning was issued, Joan called work to say she
was not going to be in because her babysitter had called in sick and she had to
stay home and care for her young child. Joan's supervisor, Sylvia, told her that
she had already exceeded the allowed number of absences and warned that if
she did not report to work, she could be suspended. When Joan did not report for
her shift, Sylvia suspended her for fifteen days.
In a subsequent hearing, Joan argued that it was not her fault that the babysitter
had canceled, and protested that she had no other choice but to stay home.
Sylvia pointed out that Joan had not made a good faith effort to find an alternate
babysitter, nor had she tried to swap shifts with a co-worker. Furthermore, Sylvia
cursed affirmative action regulations for making the hiring of Marian necessary
(Withers, and Ebrahimpour, 2018).
Marian is very upset and wants to quit.
Questions:
a) Should Marian quit?
No, Marian's not meant to pause. Alternatively, she needs to confront the case.
Through management preparation she was a high producer in her party so she
can demonstrate the same ability by being well placed so delivering (Vickers,
2016).
b) Are her co-workers correct in their evaluation?
No, her colleagues in their estimation are not right. When she was recruited for
the role, Marian has ample qualifications. She still has no disagreeable
temperament, but with her male colleagues it is tough for her to speak up. Her
friends ought to support her manage the crisis.
c) Should Marian confront the co-workers?
Yeah, Marian needs to meet her colleagues. In your head, you have a incorrect
view of her. Marian needs to speak and explain stuff with them. It's also helping
her socialize with friends.
d) Should Marian file a discrimination suit?
No, the argument of prejudice will not be raised by Marian. Especially because of
her appearance and personal actions, she was underestimated at the office. She
will become more social and develop a friendship with her colleagues.
e) Should Marian go to the supervisor?
Marian will only be handled by the boss if she refuses to challenge her
counterpart effectively. The first move will be to do with the stuff from her side.
She might go to the boss if it did not work out.
f) What else could Marian do?
It ought to be a little social for Marian. Her male colleagues will speak to her. She
will drink coffee with them and chat about their ventures. She often may support
or ask for help in creating a relationship occasionally (Osorio, 2019).
Case Scenario III: Employee Absence
Joan, an employee of Great American Market, was warned about her excessive
absenteeism several times, both verbally and in writing. The written warning
included notice that "further violations will result in disciplinary actions,"
including suspension or discharge.
A short time after the written warning was issued, Joan called work to say she
was not going to be in because her babysitter had called in sick and she had to
stay home and care for her young child. Joan's supervisor, Sylvia, told her that
she had already exceeded the allowed number of absences and warned that if
she did not report to work, she could be suspended. When Joan did not report for
her shift, Sylvia suspended her for fifteen days.
In a subsequent hearing, Joan argued that it was not her fault that the babysitter
had canceled, and protested that she had no other choice but to stay home.
Sylvia pointed out that Joan had not made a good faith effort to find an alternate
babysitter, nor had she tried to swap shifts with a co-worker. Furthermore, Sylvia
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5©Al Tareeqah Management Studies - 2020
said that the lack of a babysitter was not a justifiable excuse for being absent
(Buys, Selander, and Sun, 2019).
Questions:
a) Was the suspension fair?
Yes, it was logical as Joan was always orally warned that being absent from work
might contribute to her dismissal or dislodgment, and that being absent from
work again. He would have planned for a previous guideline such as this with
plans to comply with circumstances such as the disposition of the substitute baby
sitter, stringent guidelines surrounding the present baby sitter, management
clarify his condition and inquire for a job permit too much etc. She didn't
remember the message as she was meant to have been, so then took another
quit. The conduct indicates her ignorance of company practices and profitability,
and thus the suspension was rational with growing absenteeism.
b) Did Sylvia act responsibly?
Indeed, Sylvia behaved professionally as she initially complied with verbal and
written reminders about absenteeism, and when Joan didn't fix it and was late,
Sylvia then told her that she needed to register to avert a termination because
she had surpassed the amount of absenteeism. It wasn't until after Joan had
arrived at work that Sylvia removed her as a result of the warning in written form
and informed her of it before taking action.
c) Should Joan be fired?
No. Joan will not be shot automatically for 15 day probation duration and offered
a opportunity to prepare for babysitting. While the suspension alert will also be
provided, following the response with a further notice that it will still be shot, and
instead some measures can be taken against it if it continues the same actions.
d) Should the babysitter be fired?
The baby sitter cannot be dismissed because of Joan's indifference and denial of
the notices she has got. Indeed, if Joan issued a clear notice that she was missing
and the explanation for her absence was not compelling for Joan, the baby sitter
could be shot.
e) Was Sylvia fair in her actions?
Yes. Because Joan has already been told and issued ample notice about her
absence. So for her other subordinates any more ads will set a wrong precedent.
f) Is there ever a solution for working mothers?
Get a professional nanny who you can't take out any duties.
g) Should working fathers take turns staying home?
A father is as responsible for the child as the mother, and the couple can strike a
balance before making decisions.
Case Scenario IV
Sandoz Nutrition Corporation is a subsidiary of the Swiss pharmaceutical giant,
Sandoz Ltd. Sandoz, based in Minneapolis, Minnesota, began manufacturing
Optifast 70, a liquid meal-replacement weight loss program in 1976. The six
month program is designed for people who are at least 30 percent or 50 pounds
over their ideal weight. Health problems often accompany excessive weight.
Optifast provides an opportunity to get rid of the weight fast.
said that the lack of a babysitter was not a justifiable excuse for being absent
(Buys, Selander, and Sun, 2019).
Questions:
a) Was the suspension fair?
Yes, it was logical as Joan was always orally warned that being absent from work
might contribute to her dismissal or dislodgment, and that being absent from
work again. He would have planned for a previous guideline such as this with
plans to comply with circumstances such as the disposition of the substitute baby
sitter, stringent guidelines surrounding the present baby sitter, management
clarify his condition and inquire for a job permit too much etc. She didn't
remember the message as she was meant to have been, so then took another
quit. The conduct indicates her ignorance of company practices and profitability,
and thus the suspension was rational with growing absenteeism.
b) Did Sylvia act responsibly?
Indeed, Sylvia behaved professionally as she initially complied with verbal and
written reminders about absenteeism, and when Joan didn't fix it and was late,
Sylvia then told her that she needed to register to avert a termination because
she had surpassed the amount of absenteeism. It wasn't until after Joan had
arrived at work that Sylvia removed her as a result of the warning in written form
and informed her of it before taking action.
c) Should Joan be fired?
No. Joan will not be shot automatically for 15 day probation duration and offered
a opportunity to prepare for babysitting. While the suspension alert will also be
provided, following the response with a further notice that it will still be shot, and
instead some measures can be taken against it if it continues the same actions.
d) Should the babysitter be fired?
The baby sitter cannot be dismissed because of Joan's indifference and denial of
the notices she has got. Indeed, if Joan issued a clear notice that she was missing
and the explanation for her absence was not compelling for Joan, the baby sitter
could be shot.
e) Was Sylvia fair in her actions?
Yes. Because Joan has already been told and issued ample notice about her
absence. So for her other subordinates any more ads will set a wrong precedent.
f) Is there ever a solution for working mothers?
Get a professional nanny who you can't take out any duties.
g) Should working fathers take turns staying home?
A father is as responsible for the child as the mother, and the couple can strike a
balance before making decisions.
Case Scenario IV
Sandoz Nutrition Corporation is a subsidiary of the Swiss pharmaceutical giant,
Sandoz Ltd. Sandoz, based in Minneapolis, Minnesota, began manufacturing
Optifast 70, a liquid meal-replacement weight loss program in 1976. The six
month program is designed for people who are at least 30 percent or 50 pounds
over their ideal weight. Health problems often accompany excessive weight.
Optifast provides an opportunity to get rid of the weight fast.

6©Al Tareeqah Management Studies - 2020
The Optifast program is only available through doctors, hospitals, and medical
clinics; a prescription is required to purchase the products. The Optifast program
typically begins with the patient being placed on 420 to 800 calorie diet per day
of liquid protein for 12 to 16 weeks. Calorie intake is then increased to 1000 or
1200 calories per day for the remainder of the program. The total cost is between
$1400 and $2800. Optifast sales grew slowly following its introduction as the
medical community and consumers became aware of the program. Sales
continued to build slowly until mid November1988. Then Oprah Winfrey
announced on her TV talk show that she had lost 67 pounds using Optifast. She
appeared on the program in size 10 jeans to prove her point. Here was a
celebrity endorsing Optifast without being asked for or paid! Within hours Sandoz
received more than 200,000 phone inquires about the Optifast diet program.
The firm does not publish sales figures, but they forecasted a sales increase of
from 25 to 30 percent during the six weeks following Oprah’s announcement. In
1989 Sandoz launched a print advertisement program, mostly in professional
journals. Its promotional brochure and ad claims included: (1) “ The one that’s
clinically proven safe and effective” and (2) “You can call the Opt fast program
today, and have all you need to control your weight for the rest of your life.”
Unfortunately for Oprah, she regained 17 pounds during the first year after she
completed the Opt fast program. Studies at the University of Pennsylvania
suggested that people who undertake quick weight loss programs such as liquid
diets are likely to experience weight rebounds. Studies at the University of
Michigan indicated that as many as 90 per cent of dieters regain weight within
five years after losing it. Liquid diets have also been linked with dizziness,
headaches, nausea, gallbladder problems, and irregular heartbeat. Thus, there
appears to be some difference between claims and use experience.
Questions:
a) Were any ethical norms or principles violated by Sandoz?
The sales brochures confuse the consumer and provide the misleading idea of
the drug that the food is scientifically tested and healthy to use when the
evidence has related the usage of liquid diets to multiple issues including
dizziness, vomiting, na-like illness. The study is often correlated with the use of
fluid diets.The drug is also not very secure to use, which is why the evidence is
falsified. In fact, the advertising tactics often say consumers will test the weight
of Oprah Winfrey for the remainder of their lifespan. Therefore, Sandoz has used
bluff tactics to draw clients by making usage of a drug that will not work, as
Oprah regained 17 pounds the first year since the Opt fast system was finished.
b) Are liquid diet products ethical products? Justify your answer
Fluid diet products are not ethical because fluid dietary products do not lead to
global body development nor provide a huge of energy in the form of solid diets.
Liquid diets do not substitute for the body's calories with the criteria of a healthy
diet. Lengthy or repetitive usage of such items may contribute to curing
problems. Findings may entail dizziness, vomiting, diarrhoea, issues with
gallbladder and erratic rhythm, such that liquid diets may be considered non-
ethical drug.
The Optifast program is only available through doctors, hospitals, and medical
clinics; a prescription is required to purchase the products. The Optifast program
typically begins with the patient being placed on 420 to 800 calorie diet per day
of liquid protein for 12 to 16 weeks. Calorie intake is then increased to 1000 or
1200 calories per day for the remainder of the program. The total cost is between
$1400 and $2800. Optifast sales grew slowly following its introduction as the
medical community and consumers became aware of the program. Sales
continued to build slowly until mid November1988. Then Oprah Winfrey
announced on her TV talk show that she had lost 67 pounds using Optifast. She
appeared on the program in size 10 jeans to prove her point. Here was a
celebrity endorsing Optifast without being asked for or paid! Within hours Sandoz
received more than 200,000 phone inquires about the Optifast diet program.
The firm does not publish sales figures, but they forecasted a sales increase of
from 25 to 30 percent during the six weeks following Oprah’s announcement. In
1989 Sandoz launched a print advertisement program, mostly in professional
journals. Its promotional brochure and ad claims included: (1) “ The one that’s
clinically proven safe and effective” and (2) “You can call the Opt fast program
today, and have all you need to control your weight for the rest of your life.”
Unfortunately for Oprah, she regained 17 pounds during the first year after she
completed the Opt fast program. Studies at the University of Pennsylvania
suggested that people who undertake quick weight loss programs such as liquid
diets are likely to experience weight rebounds. Studies at the University of
Michigan indicated that as many as 90 per cent of dieters regain weight within
five years after losing it. Liquid diets have also been linked with dizziness,
headaches, nausea, gallbladder problems, and irregular heartbeat. Thus, there
appears to be some difference between claims and use experience.
Questions:
a) Were any ethical norms or principles violated by Sandoz?
The sales brochures confuse the consumer and provide the misleading idea of
the drug that the food is scientifically tested and healthy to use when the
evidence has related the usage of liquid diets to multiple issues including
dizziness, vomiting, na-like illness. The study is often correlated with the use of
fluid diets.The drug is also not very secure to use, which is why the evidence is
falsified. In fact, the advertising tactics often say consumers will test the weight
of Oprah Winfrey for the remainder of their lifespan. Therefore, Sandoz has used
bluff tactics to draw clients by making usage of a drug that will not work, as
Oprah regained 17 pounds the first year since the Opt fast system was finished.
b) Are liquid diet products ethical products? Justify your answer
Fluid diet products are not ethical because fluid dietary products do not lead to
global body development nor provide a huge of energy in the form of solid diets.
Liquid diets do not substitute for the body's calories with the criteria of a healthy
diet. Lengthy or repetitive usage of such items may contribute to curing
problems. Findings may entail dizziness, vomiting, diarrhoea, issues with
gallbladder and erratic rhythm, such that liquid diets may be considered non-
ethical drug.
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7©Al Tareeqah Management Studies - 2020
c) What moral responsibility might Sandoz have considered when developing its
promotion messages for the customers?
Sandoz has a social obligation of creating an idea and explaining all the probable
complications or future concerns connected with the usage of the Opt fast
system and adopting a liquid diet in its advertising or product ads. Instead of
over exaggerating the promises of the brochure, the customer's short-term
impact and dangers of continuously losing weight during the diet plan should
have been straightforward.Sandoz should not have made such misleading
statements in terms of his personal obligation regarding candidates ' wellbeing.
Your promotional message should only have mentioned true facts and given the
potential risk of recovery of weight to customers (Foltýnek, Meuschke, and Gipp, 2019).
Case Scenario V
Arthur Edward Anderson (1885-1947), the founder of Arthur Anderson & Co. must
have turned in his grave in 2001, as the auditor firm founded by him became a
synonym for scandal in the accounting profession. On 15th August 2001, Sherron
Watkins, an employee of Enron, questioned the company’s accounting practices,
in a single-page letter to its CEO. Enron, the energy giant that ruled the world,
and its auditor Arthur Anderson & Co., became the ridicule of the world. In early
2002, the US Justice Department began criminal investigations into Enron’s
bankruptcy. In 2002, Arthur Anderson was convicted by the lower and appellate
courts for obstruction of justice. The firm had worked hand in glove with Enron
and cooked its account books. The audit firm that once had an 85,000 strong
workforce, now had closed offices and business interests around the globe. The
firm’s name is so tarnished that there is no other business going on in it, other
than attending to over a hundred civil suits.
Questions:
(a) What do you think can be the outcomes of an accounting fraud to the society
and business at large?
Accounting and auditing businesses have a social duty and a fiduciary
commitment towards humanity, the government and the financial sector in
general. This implies, of course, that they will be truthful and disclose every
wrongdoing. When they are engaged in theft, the financial sector as a whole
lacks trust and may ultimately loss work.
Take into consideration the connection between the misconduct of the police and
crime offenders themselves. The interest of law enforcement, of reality, would be
zero under such a culture. The same can be found as accounting firms continue
engaging in frauds in the financial industry.
In general, economic disruptions may be triggered in different societal areas, like
bribery in major corporations, such as Enron or WorldCom. It will contribute to
jobs, reduced productivity, higher crime levels, unlawfulness etc. However, it is
the accounting firms ' responsibility to hold these businesses in check.
Nevertheless, because the sides indulge in bribery, the case for the businesses
and culture is lose – lose (Withers, and Ebrahimpour, 2018).
(b) Why do you think that the history of accounting fraud repeats itself, such as so
many frauds which we have heard after Enron scandal?
A substantial majority of the executive staff of a company are engaged of
accounting frauds, often with the aid of accounting companies. It is due to the
c) What moral responsibility might Sandoz have considered when developing its
promotion messages for the customers?
Sandoz has a social obligation of creating an idea and explaining all the probable
complications or future concerns connected with the usage of the Opt fast
system and adopting a liquid diet in its advertising or product ads. Instead of
over exaggerating the promises of the brochure, the customer's short-term
impact and dangers of continuously losing weight during the diet plan should
have been straightforward.Sandoz should not have made such misleading
statements in terms of his personal obligation regarding candidates ' wellbeing.
Your promotional message should only have mentioned true facts and given the
potential risk of recovery of weight to customers (Foltýnek, Meuschke, and Gipp, 2019).
Case Scenario V
Arthur Edward Anderson (1885-1947), the founder of Arthur Anderson & Co. must
have turned in his grave in 2001, as the auditor firm founded by him became a
synonym for scandal in the accounting profession. On 15th August 2001, Sherron
Watkins, an employee of Enron, questioned the company’s accounting practices,
in a single-page letter to its CEO. Enron, the energy giant that ruled the world,
and its auditor Arthur Anderson & Co., became the ridicule of the world. In early
2002, the US Justice Department began criminal investigations into Enron’s
bankruptcy. In 2002, Arthur Anderson was convicted by the lower and appellate
courts for obstruction of justice. The firm had worked hand in glove with Enron
and cooked its account books. The audit firm that once had an 85,000 strong
workforce, now had closed offices and business interests around the globe. The
firm’s name is so tarnished that there is no other business going on in it, other
than attending to over a hundred civil suits.
Questions:
(a) What do you think can be the outcomes of an accounting fraud to the society
and business at large?
Accounting and auditing businesses have a social duty and a fiduciary
commitment towards humanity, the government and the financial sector in
general. This implies, of course, that they will be truthful and disclose every
wrongdoing. When they are engaged in theft, the financial sector as a whole
lacks trust and may ultimately loss work.
Take into consideration the connection between the misconduct of the police and
crime offenders themselves. The interest of law enforcement, of reality, would be
zero under such a culture. The same can be found as accounting firms continue
engaging in frauds in the financial industry.
In general, economic disruptions may be triggered in different societal areas, like
bribery in major corporations, such as Enron or WorldCom. It will contribute to
jobs, reduced productivity, higher crime levels, unlawfulness etc. However, it is
the accounting firms ' responsibility to hold these businesses in check.
Nevertheless, because the sides indulge in bribery, the case for the businesses
and culture is lose – lose (Withers, and Ebrahimpour, 2018).
(b) Why do you think that the history of accounting fraud repeats itself, such as so
many frauds which we have heard after Enron scandal?
A substantial majority of the executive staff of a company are engaged of
accounting frauds, often with the aid of accounting companies. It is due to the
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8©Al Tareeqah Management Studies - 2020
reason of shareholders ' anxiety, business demands, management ambition, etc.
For certain situations, since citizens are naturally gullible, the explanation these
frauds happen.
While businesses can be well-meaning, there might be non-ethical staff /
managers or investors. The legal status and compliance procedure of big
corporations is sometimes overlooked. This contributes to relaxing of the policies.
Of course the incidents of accounting fraud tend to replicate themselves, bringing
to this the aspect of human failure and greed.
Case Scenario – VI: Purchasing Ethics
J.R. accepted a position at Cripple Creek Vocational University and he and his
family made a permanent move. Soon, J.R. was promoted to Administrative Vice
President, overseeing the purchasing department of the University. His oldest
son, Jim, got a good job in educational equipment sales at Tiddley Computer
Corporation in Fort Worth.
As Vice President, J.R. quickly saw the need for 4 to 5 computers in his office.
Although CCVU had a bidding policy, J.R. purchased Tiddley Corporation's
computers direct from Tiddley for about $3500 each, when IBM clones were
selling for around $2000 and the clone had more promising features than the
Tiddley. Jim handled the sale and received a healthy commission on the sale. If
the purchase had gone through the normal bidding process, the TC model would
not have been selected. Tiddley's local Cripple Creek franchise dealer objected to
Tiddley Corporation that his protected franchise had been bypassed in the deal.
Questions:
(a) Since J.R. was over the purchasing department and had final decision
authority, should purchasing have gone through the normal bidding
routine?
Yes, the procedure will be observed, irrespective of who is accountable for the
agency. Be it is acquisitions, acquisitions or sales. Growing team has the duty of
being organized and implementing the protocol as an institution and institute.
You would have been pursuing a standard bid procedure.
(b)Is it acceptable for a V.P. to bypass the normal routine to do business
with a family member?
No. The usual practice of activity for a family member will not be circumvented
by the VP.
(c) Was J.R.'s decision not to request bids an ethical choice?
No, not that. It was a rational decision when JR chose not to submit for a bid. This
supports his son, but not his organization.
(d)What should the college purchasing agent do?
This will be told by the college buyer at the college level. We do not ignore that
the move by JR cost an extra $1500 per machine to the university (Withers, and
Ebrahimpour, 2018).
(e) Should anyone else at CCVU have any interest in this activity?
The JR judgment is hindering the institute as a whole. This operation will be of
concern to the management, directors and students.
(f) Has Tiddley's Cripple Creek franchise owner been wronged?
reason of shareholders ' anxiety, business demands, management ambition, etc.
For certain situations, since citizens are naturally gullible, the explanation these
frauds happen.
While businesses can be well-meaning, there might be non-ethical staff /
managers or investors. The legal status and compliance procedure of big
corporations is sometimes overlooked. This contributes to relaxing of the policies.
Of course the incidents of accounting fraud tend to replicate themselves, bringing
to this the aspect of human failure and greed.
Case Scenario – VI: Purchasing Ethics
J.R. accepted a position at Cripple Creek Vocational University and he and his
family made a permanent move. Soon, J.R. was promoted to Administrative Vice
President, overseeing the purchasing department of the University. His oldest
son, Jim, got a good job in educational equipment sales at Tiddley Computer
Corporation in Fort Worth.
As Vice President, J.R. quickly saw the need for 4 to 5 computers in his office.
Although CCVU had a bidding policy, J.R. purchased Tiddley Corporation's
computers direct from Tiddley for about $3500 each, when IBM clones were
selling for around $2000 and the clone had more promising features than the
Tiddley. Jim handled the sale and received a healthy commission on the sale. If
the purchase had gone through the normal bidding process, the TC model would
not have been selected. Tiddley's local Cripple Creek franchise dealer objected to
Tiddley Corporation that his protected franchise had been bypassed in the deal.
Questions:
(a) Since J.R. was over the purchasing department and had final decision
authority, should purchasing have gone through the normal bidding
routine?
Yes, the procedure will be observed, irrespective of who is accountable for the
agency. Be it is acquisitions, acquisitions or sales. Growing team has the duty of
being organized and implementing the protocol as an institution and institute.
You would have been pursuing a standard bid procedure.
(b)Is it acceptable for a V.P. to bypass the normal routine to do business
with a family member?
No. The usual practice of activity for a family member will not be circumvented
by the VP.
(c) Was J.R.'s decision not to request bids an ethical choice?
No, not that. It was a rational decision when JR chose not to submit for a bid. This
supports his son, but not his organization.
(d)What should the college purchasing agent do?
This will be told by the college buyer at the college level. We do not ignore that
the move by JR cost an extra $1500 per machine to the university (Withers, and
Ebrahimpour, 2018).
(e) Should anyone else at CCVU have any interest in this activity?
The JR judgment is hindering the institute as a whole. This operation will be of
concern to the management, directors and students.
(f) Has Tiddley's Cripple Creek franchise owner been wronged?

9©Al Tareeqah Management Studies - 2020
Yes. The franchise owner of Tiddley's Cripple Creek was confused. The
organization would have first approached the local franchise by standard
procedure. This has not been finished, though.
(g)Should Jim have made the sale? Received a commission?
In Jim there is no question offering. He and his company will be allowed to submit
an offer to take part in the bidding process. Yet the bidding competition will be
earned by a rational procedure. If Jim will win the fight over other rivals, including
IBM clones and Cripple Creek's Tiddley chain, then the commission would not be
negative for him (Reilly, Saini, and Skiba, 2018).
Yes. The franchise owner of Tiddley's Cripple Creek was confused. The
organization would have first approached the local franchise by standard
procedure. This has not been finished, though.
(g)Should Jim have made the sale? Received a commission?
In Jim there is no question offering. He and his company will be allowed to submit
an offer to take part in the bidding process. Yet the bidding competition will be
earned by a rational procedure. If Jim will win the fight over other rivals, including
IBM clones and Cripple Creek's Tiddley chain, then the commission would not be
negative for him (Reilly, Saini, and Skiba, 2018).
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References
Buys, N.J., Selander, J. and Sun, J., (2019) Employee experience of workplace supervisor contact and
support during long-term sickness absence. Disability and rehabilitation, 41(7), pp.808-814.
Foltýnek, T., Meuschke, N. and Gipp, B., (2019) Academic plagiarism detection: a systematic
literature review. ACM Computing Surveys (CSUR), 52(6), pp.1-42.
Kam, C.C.S., Hue, M.T. and Cheung, H.Y., (2018) Plagiarism of Chinese secondary school students
in Hong Kong. Ethics & Behavior, 28(4), pp.316-335.
Masic, I. (2019) Plagiarism and How to Avoid It. A Guide to the Scientific Career: Virtues,
Communication, Research and Academic Writing, pp.163-177.
Osorio, J.A.C., (2019) Plagiarism issue in scientific publishing. Scientia et technica, 24(3).
Reilly, T., Saini, A. and Skiba, J., (2018) Ethical purchasing dissonance: Antecedents and coping
behaviors. Journal of Business Ethics, pp.1-21.
Vickers, L., (2016) Religious freedom, religious discrimination and the workplace. UK: Bloomsbury
Publishing.
Withers, B. and Ebrahimpour, M., (2018) The effects of codes of ethics on the supply chain: A
comparison of LEs and SMEs. Journal of Business and Economic Studies, 19(1), p.3766.
0
©Al Tareeqah Management Studies - 2020
References
Buys, N.J., Selander, J. and Sun, J., (2019) Employee experience of workplace supervisor contact and
support during long-term sickness absence. Disability and rehabilitation, 41(7), pp.808-814.
Foltýnek, T., Meuschke, N. and Gipp, B., (2019) Academic plagiarism detection: a systematic
literature review. ACM Computing Surveys (CSUR), 52(6), pp.1-42.
Kam, C.C.S., Hue, M.T. and Cheung, H.Y., (2018) Plagiarism of Chinese secondary school students
in Hong Kong. Ethics & Behavior, 28(4), pp.316-335.
Masic, I. (2019) Plagiarism and How to Avoid It. A Guide to the Scientific Career: Virtues,
Communication, Research and Academic Writing, pp.163-177.
Osorio, J.A.C., (2019) Plagiarism issue in scientific publishing. Scientia et technica, 24(3).
Reilly, T., Saini, A. and Skiba, J., (2018) Ethical purchasing dissonance: Antecedents and coping
behaviors. Journal of Business Ethics, pp.1-21.
Vickers, L., (2016) Religious freedom, religious discrimination and the workplace. UK: Bloomsbury
Publishing.
Withers, B. and Ebrahimpour, M., (2018) The effects of codes of ethics on the supply chain: A
comparison of LEs and SMEs. Journal of Business and Economic Studies, 19(1), p.3766.
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