...Production Nestle is an extremely unethical company that promotes slavery and poor work conditions for its employees. They produce infant formula that violates international regulations for breast milk substitute. They take advantage of cheap prices for their cocoa because they use child slave labor. They also abuse water rights and implement practices harm water sources in their bottled water operations in the U.S. and Brazil. Nestle will not allow a union and shuts down every effort for workers to have a collective bargaining arrangement. They do not practice fair trade and take every advantage they can to exploit workers. Nestle defends these unethical practices with denial and deception to convince people they aren’t a bad corporation. Barrick Gold Corporation is also an example of an extremely unethical company. They are a Toronto based corporation that has allegedly had a part in burning down 130 homes in Papua New Guinea. They have been accused of manipulating Titles in Chile and Australia and leaving toxic levels of arsenic near Tanzania. They are associated with the 60% shrink of glaciers near the Argentina and Chile boarder. They have polluted water resources around the world and take advantage of third world countries and their resources. These companies are able to exploit the resources of third world countries and the people in them because of the demand for these products in the U.S. Consumers cannot directly see what goes into the products they buy from...
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...environment as a way to change their product to become better for the world. For example, water bottles now use less plastic than before to be more “green”, hybrid cars are designed to work more on electricity instead of gas so less fumes are emitted. While these products could be helpful with cutting down on the damage we humans put on the Earth with the amount of pollution caused daily, the green movement has initiated some deceptive advertising; big surprise there. Greenwashing, or “green sheen” is “a form of spin in which green PR or green marketing is deceptively used to promote the perception that an organization’s aim and policies are environmentally friendly.” It is a manipulative form of advertisement to make buyers believe a company’s objective is different from reality and it is becoming more and more popular. The term started in 1986 with an environmentalist named Jay Westervelt who wrote an essay about hotels that practice making cards in hotel rooms encouraging customers to be environmentally friendly and reuse towels. He then noted that these institutions weren’t living up to reputation they gave themselves and didn’t actually make the effort to be as environmentally friendly as it the cards made it seem. Another example of this form of deception is a case in California against Roll International Corporation and Fiji Water Company LLC. It was claimed that the bottled water was “environmentally friendly and superior”. This statement...
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...environment as a way to change their product to become better for the world. For example, water bottles now use less plastic than before to be more “green”, hybrid cars are designed to work more on electricity instead of gas so less fumes are emitted. While these products could be helpful with cutting down on the damage we humans put on the Earth with the amount of pollution caused daily, the green movement has initiated some deceptive advertising; big surprise there. Greenwashing, or “green sheen” is “a form of spin in which green PR or green marketing is deceptively used to promote the perception that an organization’s aim and policies are environmentally friendly.” It is a manipulative form of advertisement to make buyers believe a company’s objective is different from reality and it is becoming more and more popular. The term started in 1986 with an environmentalist named Jay Westervelt who wrote an essay about hotels that practice making cards in hotel rooms encouraging customers to be environmentally friendly and reuse towels. He then noted that these institutions weren’t living up to reputation they gave themselves and didn’t actually make the effort to be as environmentally friendly as it the cards made it seem. Another example of this form of deception is a case in California against Roll International Corporation and Fiji Water Company LLC. It was claimed that the bottled water was “environmentally friendly and superior”. This statement...
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...affected by various forces in the external business environment “WATER is to Coca-Cola as clean energy is to BP.” So declares Jeff Seabright, Coca-Cola's manager of environmental affairs, when asked about the firm's new global water strategy. The fizzy-drinks maker unveiled that strategy as part of its annual environmental report, released this week. “We need to manage this issue or it will manage us,” says Mr Seabright. At first sight, the analogy with oil may seem odd, but it is not so far-fetched. Big Oil has long been the target of activists clamouring for action on global warming. BP stole a march on its oily brethren by accepting that climate change is a real problem, making smallish investments in clean energy, and grandly proclaiming itself “beyond petroleum”. Coca-Cola has also been targeted by activists, but over the issue of water rather than energy. The firm has been hit hardest in India. First, experts from Delhi's Centre for Science and Environment, a green think-tank, tested various soft drinks and determined that they contained high levels of pesticide. It turned out that Coca-Cola was not the cause of the problem. But its inept handling of the accusations left the firm exposed to a much more damaging allegation: that it is aggravating the growing global problem of fresh-water scarcity. An ongoing controversy in India concerns allegations that some of the firm's bottling plants use too much water in drought-prone areas, thus leaving poor local villagers with too...
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...ETHICS-COMPANY PEPSICO Ethics Business ethics is the accepted set of moral values and corporate standards of conduct in a business organization. These standards of business behavior promote human welfare and the good. Business ethics are exhibited both as written and unwritten codes of moral standards that are critical to the current activities and future aspirations of a business organization. They can differ from one company to another because of differences in cultural perspectives, operational structures and strategic orientations. Therefore, different people have different beliefs about what constitutes ethical behavior. The law defines what is or not legal, but the distinctions between moral right and wrong are not always so clear. In many situations lines between right and wrong are blurred. Such situations can be helped to be cleared by using organization written codes and/or policies. Through the usage of auditors, ethics classes, written codes and policies, numerous companies have reinforced their business ethics and best practices to ensure that fraudulent activities are prevented. The food and beverage sector of the economy has faced increasing pressure from consumers to provide transparency on the sources and operations related to their products. Responsible and ethical procurement is especially challenging for food and beverage, because agricultural commodities typically rely on low-cost labor inputs and environmentally-damaging technology and practices in order...
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...resources. Fraud is a potential problem that threatens the Federal Government mission of protecting the health and welfare of the American peoples. According to the Legal Information Institute (LII) at Cornell University Law School fraud precise legal definition varies in the area over which legal authority extends or the given power or authority that has exclusive jurisdiction to decide legal matters. LII defines fraud as “deliberately deceiving someone else with the intent of causing damage.” On December 2nd 2012 Special Agent Jason Muldrew of the Air Force Office of Special Investigations at Kunsan Air Base, Republic of Korea printed news story said, “Fraud is defined as the crime of obtaining money or other benefits by deliberate deception.” Fraudulent activities perpetrated against the Federal Government cost the American taxpayer millions of dollar per year. For example, on December 12th 2012 the Department of Justice (DOJ, 2012) issued a press release that stated the department recovered a record $13.3 billion while pursuing allegations of fraud against the government since January 2009. For the fiscal year ending...
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...ALRIDGE BREWING COMPANY Craft Brewing Goes Public In August 1995, Paul Shipman, the CEO of Alridge Brewing (AB) prepared himself to enter uncharted territory. A craft brewing operation had never before been taken public in the United States, and he and his management team were about to do just that. Sure, there were massive large-batch breweries like Anheuser-Busch and Miller Brewing Company that were profitable, publicly traded firms—but there was something different about Alridge: it embodied the ethos and grassroots beginnings of the microbrew movement, and Shipman was confident that widespread market demand for craft beer was set to explode. He and the team had steadily developed their premium-quality handmade ales for nearly fifteen years, and their loyal customer base was strong. In the last year alone, he’d forged alliances with both Starbucks (for the purposes of co- branding a coffee- flavored brew) and A-B that had purchased a capped 25% interest in AB in exchange for access to its national distribution networks and accounting systems. Shipman had overseen significant capacity increases, with plans on the horizon for yet another brewery in Portsmouth, New Hampshire. He had worked hard to position AB favorably for expansion, and the public offering would provide the necessary capital. But how would the “microbrew” feel of AB translate to the largescale commercialization and growth pressures of the open market? Producing and distributing microbrews on a large scale...
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...1 Kolb-01.indd 1 Introduction to Uses and Methods of Marketing Research 2/7/2008 6:10:15 PM Kolb-01.indd 2 2/7/2008 6:10:16 PM 1 1 2 3 4 5 Introduction to Marketing Research Learning Objectives Recognize that research is an integral component of marketing strategy Define marketing research Describe the development of marketing research as a profession Explain how marketing research is incorporated into the marketing plan Discuss the importance of conducting ethical research WHAT MOTIVATES YOUNG PEOPLE TO BUY? AUTOMAKERS NEED TO KNOW! Surprisingly 6 per cent of all US car sales are made to people 16 to 24 years old. Because this is a sizeable target market segment, automobile companies have spent millions on design and advertising trying to win this segment’s brand loyalty. However, the distinctive stylish designs created for the Pontiac Aztek, Chrysler PT Cruiser and Toyota Echo failed to interest young potential auto buyers. Why did the cars fail to attract buyers? CNW Marketing Research studied young auto buyers to learn what really motivates them to purchase. They found that the average price of autos purchased by this group was only $15,000. The research found that young people were interested in style, but first wanted low price, good value and long warranties. Was the research correct? The South Korean company Hyundai Motors produced two cars that offered these benefits. When the automaker introduced the Accent (priced at $10,000) and the Elantra...
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...General Electric General Electric Company | | Type | Public | Traded as | NYSE: GE [1]Dow Jones Industrial Average Component S&P 500 Component | Industry | Conglomerate | Founded | Schenectady, New York, U.S. (1892) | Founder(s) | Thomas Edison, Elihu Thomson, Charles Coffin, Edwin Houston | Headquarters | Fairfield, Connecticut, [2]U.S. | Area served | Worldwide | Key people | Jeffrey Immelt (Chairman & CEO) | Products | Appliances, aviation, consumer electronics, electrical distribution, electric motors, energy, entertainment, finance, gas, healthcare, lighting, locomotives, oil, software, water, weapons, wind turbines | Revenue | US$ 147.359 billion [3] (2012) | Operating income | US$ 17.406 billion [3] (2012) | Net income | US$ 13.641 billion [3] (2012) | Total assets | US$ 685.300 billion [3] (2012) | Total equity | US$ 123.000 billion [3] (2012) | Employees | 301,000 [3](2012) | Subsidiaries | GE Capital, GE Energy,GE Home & Business Solutions, GE Technology Infrastructure, GE Aviation NBCUniversal [4](49%) | Website | GE.com [5] | General Electric Company, or GE (NYSE: GE [1]), is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States.[2][6] The company operates through four segments: Energy...
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...‘ THE BUSINESS OF MASS MEDIA Advertising and Commercial Culture 345 Early Developments in American Advertising 351 The Shape of U.S. Advertising Today 359 Persuasive Techniques in Contemporary Advertising 366 Commercial Speech and Regulating Advertising 374 Advertising, Politics, and Democracy Back in 1993, the trade magazine Adweek wrote about “The Ultimate Network”— something called the Internet: “Advertisers and agencies take note: It has the potential to become the next great mass/personal medium.”1 The prediction was correct, if not understated. The Internet has become a huge medium for advertisers, targeting audiences more precisely than any medium before it. Yet, none of the venerable ad agencies at that time could have guessed that an Internet start-up—Google— would become bigger than the leading multinational advertising holding companies like Omnicom, WPP, Interpublic, and Publicis. Nearly 99 percent of Google’s $16.6 billion revenue in 2007 came from advertising. THE BUSINESS OF MASS MEDIA B 343 ‘ ADVERTISING However, Google is different from the Madison Avenue agencies. It doesn’t design witty, slick ad campaigns. Instead, it facilitates the dull but effective text-based sponsored links that appear in Google searches or on affiliated sites. “We are in the really boring part of the business…the boring big business,” Google’s CEO Eric Schmidt says.2 What Google’s ads lack in creativity, they make up in precision. Google’s AdWords advertising...
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...Neuron, Vol. 44, 379–387, October 14, 2004, Copyright 2004 by Cell Press Neural Correlates of Behavioral Preference for Culturally Familiar Drinks neural responses, and the modulation of both by nonodor or nonflavor stimuli—that is, the sensory problem. Ultimately, such sensory discriminations and the vari- Samuel M. McClure,1,2 Jian Li,1 Damon Tomlin, Kim S. Cypert, Latane´ M. Montague, and P. Read Montague* Department of Neuroscience ables that influence them serve to influence expressed Menninger Department of Psychiatry behavioral preferences. Hence, there is another large and Behavioral Sciences piece of the problem to understand. For modern huBaylor College of Medicine mans, behavioral preferences for food and beverages 1 Baylor Plaza are potentially modulated by an enormous number of Houston, Texas 77030 sensory variables, hedonic states, expectations, semantic priming, and social context. This assertion can be illustrated with a quote from Anderson and Sobel (2003) Summary profiling the work of Small et al. (2003) on taste intensity and pleasantness processing: Coca-Cola (Coke) and Pepsi are nearly identical in chemical composition, yet humans routinely display “A salad of perfectly grilled woodsy-flavored calastrong subjective preferences for one or the other. mari paired with subtly bitter pale green leaves of curly endive and succulent petals of tomato flesh in This simple observation raises the important question a deep, rich balsamic dressing...
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...Sport MarHeting Quarterly, 2006, 15, 114-123, © 2006 West Virginia University Coca-Cola vs. PepsiCo — A "Super'' Battleground for the Cola Wars? Steve M. McKelvey Overview of the Soft Drink Industry Coca-Cola: The Defending Champion Since its inception in the late 1800s, Coca-Cola has experienced meteoric growth, progressing from nine glasses per day to nearly 4.5 billion cases on an annual basis ("Top 10," 2004). Today, Coca-Cola offers nearly 400 brands in over 200 countries and controls the highest market share (44%) in the soft drink market ("Top 10," 2004). In addition to its leading global market-share, Coca-Cola also retains the title of having the most popular individual beverage in the world in Coca-Cola Classic, with an 18.6% market share ("Top 10," 2004). Additionally, in 2003 it placed four beverages in the top 10 for individual product sales: Coke Classic (#1), Diet Coke (3), Sprite (5), and Caffeine Free Diet Coke (8) ("Top 10," 2004). Through Research & Development (R&D) and acquisitions, Coca-Cola has also expanded its product line to include non-carbonated beverage products, including: Dasani, Fanta, Fruitopia, Hi-C, Minute Maid, and Mr. Pibb. In 2003, Coca-Cola spent approximately $1.9 billion on marketing and advertising. In November 2004, Coca-Cola CEO Neville Isdell stated that "[Marketing expenditures] would rise by $350-$400 million a year ... forever" (Marketplace Roundup, 2004). Pepsi-Cola: The Challenger With the exception of brief bankruptcy...
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...In 1996 a best-selling book entitled The Millionaire Next Door caused a minor sensation. In contrast to the popular perception of millionaire lifestyles, this book reveals that most millionaires live frugal lives--buying used cars, purchasing their suits at JC Penney, and shopping for bargains. These very wealthy people feel no need to let the world know they can afford to live much better than their neighbors. Millions of other Americans, on the other hand, have a different relationship with spending. What they acquire and own is tightly bound to their personal identity. Driving a certain type of car, wearing particular designer labels, living in a certain kind of home, and ordering the right bottle of wine create and support a particular image of themselves to present to the world. This is not to say that most Americans make consumer purchases solely to fool others about who they really are. It is not to say that we are a nation of crass status-seekers. Or that people who purchase more than they need are simply demonstrating a base materialism, in the sense of valuing material possessions above all else. But it is to say that, unlike the millionaires next door, who are not driven to use their wealth to create an attractive image of themselves, many of us are continually comparing our own lifestyle and possessions to those of a select group of people we respect and want to be like, people whose sense of what's important in life seems close to our own. ...
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...213-255_Trevino_08p4.qxd 6/21/06 5:18 PM Page 213 PA R T IV ETHICS AND THE ORGANIZATION 213 213-255_Trevino_08p4.qxd 6/21/06 5:18 PM Page 214 CHAPTER 8 ETHICAL PROBLEMS OF ORGANIZATIONS INTRODUCTION In the third quarter of 2002, the Brookings Institution, a Washington, D.C., think tank, estimated that the corporate scandals that began with the Enron debacle in late 2000 would cost the U.S. economy $35 billion. That is the equivalent of a $10 increase per barrel of oil.1 It is, in a word, staggering. And we may not have seen the end of it. Long before Enron’s collapse, a number of business ethicists and business professionals watched with concern as Wall Street analysts demanded increasingly strong corporate financial performance to support rising corporate stock prices. At the same time, the gargantuan compensation packages (including stock options) of the top executives running these companies became inextricably linked to their companies’ stock prices. In 1990, average CEO pay at major corporations was 107 times the pay of the average worker. By 2004, CEO pay had risen to 431 times the pay of the average employee. (If the pay of average workers in the United States had risen as fast as CEO pay, the lowest paid workers would be earning $23.03 an hour, not $5.15 an hour.)2 It was an “accident” waiting to happen, although everyone was making so much money in the market that no one wanted to admit that something could be fundamentally...
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...Advertising, Promotion, and other aspects of Integrated Marketing Communications Terence A. Shimp University of South Carolina Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Advertising, Promotion, & Other Aspects of Integrated Marketing Communications, 8e Terence A. Shimp Vice President of Editorial, Business: Jack W. Calhoun Vice President/Editor-in-Chief: Melissa S. Acuna Acquisitions Editor: Mike Roche Sr. Developmental Editor: Susanna C. Smart Marketing Manager: Mike Aliscad Content Project Manager: Corey Geissler Media Editor: John Rich Production Technology Analyst: Emily Gross Frontlist Buyer, Manufacturing: Diane Gibbons Production Service: PrePressPMG Sr. Art Director: Stacy Shirley Internal Designer: Chris Miller/cmiller design Cover Designer: Chris Miller/cmiller design Cover Image: Getty Images/The Image Bank Permission Aquistion Manager/Photo: Deanna Ettinger Permission Aquistion Manager/Text: Mardell Glinski Schultz © 2010, 2007 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, information storage and retrieval systems, or in any other manner—except as may be permitted by the license terms herein. For product information and technology assistance, contact us at Cengage Learning Customer &...
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