Strategic Management
3rd Edition
ISBN: 9781259420474
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Question
Chapter 12.4, Problem 3CC
Summary Introduction
Case summary:
Company U provides ride-hailing service. The massive growth of Company U got global recognition, overtaking their competitors. The valuation of the company was $8 billion in 2017. Despite the massive growth, the firm faced numerous ethical challenges due to a lack of ethical principles in its operations.
The company disregarded laws, rules, and regulations in Country U by adopting dynamic pricing system, competitive tactics, attacking critics, and not responding properly to the lawsuits.
The problems of the company increased due to a lack of proper governance. The company hired Person DP to take care of public relations and after his charge, the company was expected to improve its ethical system and recover from its lawsuits. However, Company U is planning to introduce self-driven vehicles in the future.
To determine: Whether Company U is the most ethically challenged company and justify the reasons.
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In 2022, GlobalTech, a multinational company, expanded its operations into a developing country with different cultural norms around labor practices. While GlobalTech's corporate ethics emphasised fair wages, safe working conditions, and environmental sustainability, local business practices often included lower wages, minimal safety protocols, and lax environmental regulations. The CEO, Jane Harris, who strongly believed in ethical universalism, faced pressure from the local management team to adapt to the region’s practices to reduce operational costs and gain competitive advantage. As the company compromised on wages and environmental standards, it sparked internal conflicts among employees, with some advocating for adherence to the company's global ethical policies while others argued for alignment with local practices under the guise of ethical relativism. Soon after, news broke out about poor working conditions and environmental violations, leading to public outrage, protests,…
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- Summarises the influence of personal and corporate values on decision-making and how ethical conflicts may affect a multinational business like GlobalTech.
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