Better Business Bureau

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Michael FrancisBusiness Ethics
BBB Case Study
Summary:
The BBB was created to establish an environment of trust between buyers & sellers. This trust is created through the BBB’s “standards of trust”. Companies that abide by these standards in turn receive accreditation. As a not for profit, the BBB relies on funds from sponsors and members. Up until recent, the BBB seemed to have offered special benefits to those that paid a fee to become members. Such accusations have caused the BBB to address their current system and make changes to ensure fairness amoung members and non-members.

1)Who is the BBB’s most important stakeholder, business or consumers? ->The most important stakeholder for the BBB is the consumer. Yes, businesses provide the resources for the BBB, but they only do this to create a positive image for their brand in the eyes of consumers. If the consumers did not care about the ratings of the BBB then businesses would not invest.

2)Do you think the BBB can truly be impartial given its financial dependence on business? ->No the BBB can’t be impartial. There needs to be a reason for companies to invest in the BBB. If the treatment of non-members were truly the same as members, then the company will give companies little reason to invest.

3)What actions can you take to make sure the “pay for play” scheme did not happen again? ->The main issue with the “pay for play” scheme was the fact that those who sold first year memberships received a 45 percent commission. This type of reward system is very similar to the AIG system that caused problems within their company. ->The BBB should implement a new reward system. Maybe a system that provides rewards based on the pitching of memberships to potential business. Employees should be rewarded regardless of if the sale goes through or not.
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