Ethical Dilemma Mgnt 4166-01

1. Ethical DilemmaMgnt 4166-01 Jeremy Ingram KiearaHall Partrice Hill Josh Duiguid Brandon Davis

2. Table of Contents • Sleepless in Seattle or Sexism in the City (pg. 573) – Kieara Hall • Mixed Messages: Can McDonalds’s Make “Cents” of this? (Pg. 170) • -Josh Duiguid • NYC Transit Workers Union: Are They Striking It Rich or Striking Out? (Pg. 371) • Patrice Hill • Poison Pill Hard to Swallow for a Healthy Bally’s Total Fitness (Pg. 337) • Jeremy Ingram • Was Going to China the Right Medicine for Novartis AG or a Formula for Disaster? (Pg. 482) • Brandon Davis

3. Sleepless in Seattle or Sexism in the City (pg. 573) • Which Common Area of employment discrimination does this ethical dilemma highlight? • Sex discrimination in the work place • Referring to affirmative action, equal opportunity employment, and comparable worth, define the problem that this ethical dilemma highlights. • The problem is that the company is going against its own ethics policies (and the law) by allowing a large an consistent number of female employees to work in similar jobs as males employees with dramatically lower pay. • Presumable Boeing values the diversity of their workforce. What Additional measures does Boeing need to take to ensure that their values are implemented? • They need to have a quarterly evaluation and choose samples from all work sites to compare the pay of males to females. They also need to give surveys to both male and female workers to see what they think about their pay compared to others in their field. • What actions would you take now if you were CEO McNerney? Why? • I would go visit this particular site and have a meeting session with the management and hiring staff and fire those involved in giving the different pay. I would then meet with and apologize to the workers and offer the women discriminated against a bonus in hopes that there would be no lawsuits.

4. Mixed Messages: Can McDonalds’s Make “Cents” of this? (Pg. 170) 1. What are the messages that McDonald's is receiving, from who, and why are they are mixed? The message that McDonald's are receiving by farmers is that they should pay more for tomatoes so that the farmers can get paid more for their product. Their mix because the customers. Pathetic to the farmers but if McDonald's have to pay more for tomatoes that customers have to pay more for burgers and salads. 2.How my CEO Jim Skinner, both in approach and style sponsored these messages? I think Jim Skinner's approach to this problem could be that he will meet with the CEOs/ board members, farmers and customer representatives to try to find a middle ground for this tomato problem. 3. What actions should CEO Jim Skinner take to make sure that his response is understood? Again because of the meeting with CEOs/board members, farmers, and customer representative they will find a middle ground where everybody is happy and everyone is understood. The Understanding in the meeting would be made public for all to know so that all of the McDonalds world would know. 4.Would you be willing to pay more for McDonald's food so that they can raise the price they pay for tomatoes? I'm not sure if I'm willing to pay too much for McDonald's burger if the price is raised maybe $.10-$.25 it would not have a negative impact but anything more I'm not sure of customers all willing to pay that much for a McDonald's burger because they are known for the low prices.

5. NYC Transit Workers Union: Are They Striking It Rich or Striking Out? (Pg. 371) • Strikes by public unions are illegal. Is this Behavior Type I or Type II ethics? Explain. • This would be type II ethics because most public unions know that strikes are illegal and are defined as wrong by society but they decide to take action anyway. • Union strikes involve which bases of power? Explain. • Union workers bases of power is usually toassert control over the workplace in order to halt production until worker demands were met. • How might unions use influence tactics to win public opinion to their cause? Which influence tactics might work best? • Unions use influence tactics to win public opinion to their cause by showing how bad they may be mistreated or treated unfairly. Influence tactics that may work best are rational persuasions, logical arguments, and giving factual evidence. • Was NYC’s Metropolitan Transportation Authority’s employees union justified in striking? Provide a rationale for your answer. • It was justified because they were trying to prevent management from seeking to cut labor costs and benefits to offset dramatically increasing operating costs.

6. Poison Pill Hard to Swallow for a Healthy Bally’s Total Fitness (Pg. 337) • What might have motivated the two stockholders to demand new management? Support your answer by referring to specific theories of motivation. • The two stockholders were unhappy with the fact that Toback was thinking that the company should sell “off some of its high-end brands in order to focus on its mid-sized clubs and or sale or merge the company • Using expectancy or reinforcement theory, describe why CEO Toback was surprised at the negative reactions of the stockholders to his divestiture strategy. • Reinforcement Theory is behavior that can be controlled through the use of rewards. Mr. Toback honestly thought he was doing a good when he wanted to focus on mid-sized clubs. The reactions that he received can be viewed in the form of an punishment. The investors didn’t not want the company to target mid sized clubs. They wanted for the company to cater to its high-end gym brands because they could continue to work with a specific clientele • Using equity theory, describe how the poison pill plan might be perceived to maintain fairness among stockholders. • According to the equity theory, people compare their inputs and outputs with those of relevant others. If the poison pill plan were to be viewed by the managers of the company and the investors of the company, that might eliminate the problem that is with the managers and investors. To have fairness in the company the superiors in the company need to be notified whenever an occurrence occurs. • Should Topak reconsider the divestiture strategy given the two stockholders’ complaints? • He should reconsider their input however if his decision is the deciding factor then it would not be necessary It is nice to include people in decision making but the superiors of the company need to understand their role in the company

7. Was Going to China the Right Medicine for Novartis AG or a Formula for Disaster? (Pg. 482) • What are the potential problems associated with Novartis opening a research center in China? Novartis opening a research center in China may increase unethical acts between doctors and other companies. Likewise, medical-devices company will continuously use outside distributors even though it suspects them of providing unethical incentives to doctors. • Have alternatives been explored? If not, creative suggestions? There has not been any explorations of alternatives. Some creative suggestions are to generate alternatives if there is a problem. In addition, Novartis should consider the pros and cons of opening a research center in China. Since there is an importance of intellectual-property in China, Novartis’ CEO needs to make sure there is sufficient protection to pharmaceutical-research investment. • Why should or shouldn’t the firm make this decision through group decision making? The firm should make this decision through group decision making because it will assist in building a thorough creative process. As a result of the use of group decision making, there is a greater understanding of cost and benefits and chance of the firm making better decisions. • If you were CEO Vasella, would you open a research facility in China? If I was CEO Vasella, I would not open a research facility in China if the growing market came with increasing problems that would probably jeopardize the firm.