Koke International is going to commit ethical mishaps in their next business endeavor. Wendy is behind the scheme of misguided plans to take over the New England market. From a big picture standpoint, Koke Int. looks like it may turn into a monopoly. She has brought in other employees to do the dirty work for her. Victoria is one the employees brought in to perform unethical tasks.
Victoria has been put in charge of undercutting the competition’s price for the next eighteen months to force them out of business, no matter if there is a loss in profit. When a company operates at a loss to injure other businesses, it is called predatory pricing. Predatory pricing is successful when a company affects the entire market and allows them to monopolize. When a company is successful in monopolizing a region, antitrust claims will be filed and the company will be placed under investigation. It is a condemned practice from an ethical standpoint.
Other tasks Wendy has given her other employees are also unethical. She has asked Frank to hire the other firms’ key employees at a fifty percent pay increase to only have them fired after eighteen months on the job. They will do this by keeping the union away. When a competitor hires an employee from the other firms, it has to have a reason besides for competitive purposes. In Koke Int. case, the only reason to hire competition is to have an advantage that will force the other companies out of business. Courts will almost always side with the damaged firms and Koke Int. will be forced to pay a substantial amount to make up for the losses they have caused. Also, it is highly unethical to fire employees when they have done nothing but good for the company. This will also lead to a lawsuit that will highly favor the victims.
Ed has been put in charge of finding out inside information about the other firms. He will do this by doing business with the competitors’ banks. Incentives will be given to the banks...
Please join StudyMode to read the full document