MGT 602
Week 3 Assignment
October 19, 2015
Is Fleming engaging in anything unethical here? If you were a Fleming executive, on what grounds would you defend the company's actions?
Fleming’s activities as described from this case is very unethical as they were very deceitful in their operations. Service or product pricing needs to be clearly defined as clients should be able to understand what they are being charged in order to have an ethical negotiation in any business manner. The Fleming company exploited their market position and customer trust and used their domination of a particular market segment to hold their customers to ransom. Thus, the institutional role of the corporation in society, which is at the core of disputes over social responsibility, is regarded by the theory of the firm as a matter of choice to be made by corporate managers, shareholders, and the rest of society. (Allen Kaufman, Lawrence Zacharias, and Marvin Karson, 1995.) There is perhaps no way that the businesses activities could be upheld in any normal or …show more content…
The only problem is that this may be very cost prohibitive or the necessary skills to build such network may not be available within the organization. This is why despite the abuses the distributors still stayed with Flemings for a lengthy period of time. Misappropriations are like the allocation problems of imperfect contracting insofar as they arise from a lack of knowledge or foresight, but they are more akin to post-contractual opportunism, which usually results from a lack of monitoring. (Kenneth E. Goodpaster, 2001)
If you were a Fleming shareholder, would you be pleased with the manner in which the company is being managed and the reputation that such practices are giving the company? Is what is going on here sufficient grounds for selling the shares you