Business Ethics

Chapter 1

1. Acme Corporation faces a few potential ethical issues. There appear to be bribes and
illegal contracting practices happening because Frank offers gifts to Otis to get or
increase his contracts. Frank also received bonuses as an incentive for increasing his
business with Otis.
2. In order for Acme to ensure ethics becomes a part of its core organizational values, they
need to get their employees involved to discern what they believe is ethical behavior in
the work place and form group functions where business ethics are discussed. The need
for an HRC (human resource manager) and desired policies and values need to be
discussed.
3. Frank needs to be made aware of ethical issues such as quid pro quo and
misappropriation of funds.
4. Organizational ethical misconduct gave Frank an advantage in sales at the beginning of
his dealings with Thermocare, helping him become a top salesman. A disadvantage might
be that ending these practices could end his receiving bonuses and may potentially
threaten his job. As a whole, Frank would benefit from an increased ethical culture with
increased ethical commitment and trust, investor loyalty and customer satisfaction.