Case Study - Better Business Bureau
1. Discussing the various stakeholders involved and the negative/positive effects that the company’s action(s) had/have on them. Stakeholders include: businesses, consumers, and non-profit organization. Businesses: For accredited businesses, they paid to join the BBB and somehow enjoy high ratings among all the businesses. The pay-to-play scheme also affected these businesses in a negative way because the ratings are less reliable if whoever pays the fees could be rated higher. For nonaccredited business, since the rating is an important factor for consumers to choose a service/product provider, the consumer would more likely to choose a BBB member or an accredited business, and thus make those nonaccredited companies lose their business despite how good their services are. Consumers: consumers would be confused if BBB provides an unfair rating and base the ratings on whether the company is a member of the association. Plus, since BBB is popular and trustworthy of its objectively rating system, customers are more likely to pay more for same services or products if they choose a BBB member business because an accredited business must make up for what it paid to BBB by raising the price. Non-profit organization: Since BBB also rate non-profit organizations, these organizations are also slightly affected by the actions of the BBB. 2. Clearly identifying any laws involved or stating that there are no laws involved? There are no laws involved because this is a core practices. Core practice is a highly appropriate and common practice that helps ensure compliance with legal requirements, industry self-regulation, and societal expectations.
3. Explicitly stating the moral philosophy on which you are basing your answers. Justice as it is applied in business ethics involves evaluations of fairness or the disposition to deal with perceived injustices of others. Justice is fair treatment and due reward in accordance with...
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