Class: Business Ethics
Chapter 10 Homework
Discuss the corporate ethical issue of providing questionable products to other markets.
In this case, George who is operation manager of CornCo plant Phoenix where buying corn and producing chips marketed in the United States and elsewhere. The corn futures were on the rise, which would ultimately increase the overall costs of production, at the same time, a new company called Abco Snack Foods had begun marketing corn chips at competitive prices in CornCo’s market area. That’s why George had to find some way to fix out this problem. George’s vice president Jake Lamont gave him a solution that mix some contaminated corn with uncontaminated corn. It’s very unethical problem, they just think about their profit, they don’t care about customer’s health when they eating corn that have aflatoxin can induce liver cancer.
Discuss the suggestions submitted in the suggestion box in light of the decision that George must make. Should the suggestions have an influence?
George got the suggestion from his vice president, Jake Lamont. Jake tells George to use a little amount of contaminated corn to produce chips, because the contaminated corns are much cheaper than uncontaminated corn so they can cut costs to competitive with Abco company, and they can earn profit for doing that. Contaminated that testers reported the presence of aflatoxin , a naturally occurring carcinogen that induces liver cancer in lab animals. If George do it, he has to be responsible for what he do, he will be convicted if someone find out. The customers who buy and eat those corn chips will not be good for their health.
Identify the pressures that have caused the ethical and legal issues in this scenario to arise.
In this case, George has no choice. He will get laid off if he would not do it, he has got a family to support and house payments, for him there are no alternative. A hundreds of workers would be out of a job if George...
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