Assignment Week 02

1. Iowa Beef (IBP) grew rapidly from its inception. Maybe too rapidly and along the way may have lost the ability to run a socially responsible company. They were criticized for low wages, providing few worker benefits and questionable working conditions. Not all of these items were keeping in the spirit of proper ethics or social responsibility. In 2001, Tyson Foods, acquired IBP.

Start by logging into the web site provided. Then click on “Company Information”.

In reviewing the web site what if anything would lead you to believe that Tyson Foods has established an ethical working environment. Is there any part of the web site that leads you to believe management is practicing one of the most important steps in support of ethical behavior, demonstrating top management support? Is there a code of ethics for all to see? What do they say about their employees?

2. In formulating, a firm’s attitude about honesty and openness a business should include two key components. First adopting a written code of ethics and secondly instituting an ethics program. Review the United Technologies site, the eyes of a potential employee seeking a company that “walks the walk” when it comes to ethics and their company. What is your take on United Technologies? Do they have guiding principles?

Go to United Technologies' web site, and click on “Social Responsibility”. Once on the page you will see United Technologies’ major points about their role in social responsibility.

3. Steve and Doreen, the partners of Media One have just finished their Monday morning meeting. Their marketing manager presented them with the following: past actions in developing products by first considering ethical and social responsibility has cost the firm. Many of the products could be produced at a lower cost with less attention to quality while not violating any laws and without the customer probably ever knowing. As the owners of the business how are you going to respond at your next meeting?

4. Today’s business must consider both the internal and external operating environment. To be truly socially responsible consideration must be given to the environment, customers, employees and investors. The unethical and irresponsible actions of businesses can result in imposed penalties and litigation. The Federal Trade Commission the agency that regulates advertising and pricing practices affecting consumers.

Upon visiting this web site review the different concerns the FTC deals with. What topics did the FTC address on this site? How does the topics relate to the above discussion?

5. Sears, Roebuck and Co., developed the Sears American Dream Campaign as a proactive social responsibility stance. In August 2002, the company announced the Sears American Dream CampaignSM, a $100 million community commitment to help millions of Americans overcome the barriers to home ownership and provide products and services that outfit and maintain homes and families. They plan to attain this commitment through contributions to not-for-profit organizations that support this campaign.

What are the purpose, focus, structure and limitations of the Sears American Dream Campaign? Explain how the activities this funding provides for is considered proactive in social responsibility circles.

6. A private business established to manufacture and distribute ceramic coffee mugs is approached by their local youth soccer association to help support and continue the program for the community youth. The firm also is in the process of filling out the paperwork required to qualify for a bank loan to increase their production capacity through expansion of their facility. While the company would like to support the local youth, it is important that their financial statements look very good to meet loan qualifications. It may be possible to contribute to the soccer association and not report it on the loan paperwork if the donation is done immediately after the paperwork is completed and turned into the bank. What should the company do in order to make the socially responsible and ethically correct decision?