Directions: Read the case” Why Didn’t We Know” (it is included in the Harvard Business School Publishing course-pack). Then answer the 3 questions listed below.
Remember that the purpose of a case assignment is to help me assess whether you have understood the concepts and techniques covered in this course and are able to apply them to real business situations. Make sure that your answers are based on the application of appropriate theoretical concepts and techniques discussed in class rather than on a gut-feeling that you might have.
- Identify two unethical actions or decisions (related to but other than the channel-stuffing scheme) that you deem to be unethical. Use the ethical analysis techniques discussed in this course to explain why you consider each of these actions or decisions to be unethical. For each action or decision, what would have been a more ethical alternative? Explain why.
- The case states that Galvatrens had put in place a number of procedures and policies to detect and prevent unethical behavior. Yet, many unethical decisions were made and only one person came forward to report such misconduct. Why did Galvatren’s efforts at preventing unethical behavior fail? Justify your answer using concepts discussed in this class.
- Do you believe that Galvatren’s board and CEO bear any responsibility for the company’s failure to promote ethical behavior? If yes, explain why. If not, explain why not. What should the board do now to prevent unethical behavior in the future? Use concepts discussed in class to justify your answer.
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