BMGT 496 Learning Activities Week 4
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Learning Activity 1:

Read the scenario below and respond to the questions following.

Scenario: Company X, a multinational manufacturing company based in the US, produces and sells boxed cereals. X grows some of the grain used in its cereals, and buys the other ingredients for its products from suppliers in the US and overseas. X has an existing Corporate Social Responsibility (CSR) program called Breakfast First through which it donates cereal products to homeless shelters, and to the Red Cross for distribution to areas where needed; . X is considering spending even more money to to create one or two new CSR programs.

  1. Assume the role of Milton Friedman addressing top management and the Board of Directors for Company X. Friedman’s role is to recommend against the new CSR programs for X; he must explain and justify his theory that the “business of business is business…” and the primary focus of a business is maximizing profits is also ethical.

You might want to write your response in the form of a memorandum to management and the Board of Directors from Friedman OR simply write your response in an essay/speech type format.

Refer to other ethical theories if appropriate, cite to at least 3 assigned materials from week 4 in your response. In addition, you may cite to assigned materials from prior weeks.

USE in text CITES to support your conclusions and decision.

Respond in 3-4 paragraphs.

Learning Activity 2: due Mar 19, 11:59 pm ET (this means prior to midnight; hereafter submissions after 11:59 will be considered late and not earn credit – plan ahead, please – sorry but we have to be precise otherwise there is effectively no deadline for assignments 🙂

Read the scenario below and respond to the questions following.

Scenario: You have been the Chief Financial Officer (CFO) for a large pharmaceutical company for 15 years. The Company’s year-end is March 31 and you are finishing the year end accounts.

You have recently been advised by the Chief Operating Officer (COO) of a significant level of slow moving stock. The stock in question is now more than nine months old and would normally have been written down some months previously.

The shareholders are trying to sell the Company and the Chief Executive Officer (CEO), who is also the majority shareholder, has told you that it is not necessary to write down the stock in the year end accounts. You are sure that the CEO wants the financial statements to carry an inflated stock valuation because he has found a prospective buyer for the Company. The CEO has mentioned to you that if the proposed deal is successful, all employees will keep their jobs and you will receive a substantial pay increase.

  1. What are the ethical implications/specific ethical issues in this scenario?

Please refer to Toolbox and review examples of ethical issues v dilemma etc; ethical issues are specifically defined words or phrases, i.e., respect for human life, etc.

Respond in 2-3 paragraphs.

  1. What would you decide in this case and why?

Address all internal stakeholders (employees, shareholders) in your response. Address any ethical theories that might support your decision.

Respond in 3-4 paragraphs.

USE in text CITES to support your conclusions and decision.

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