BUSINESS ETHICS

BUSINESS ETHICS

Last year Oscar was promoted to manager of marketing research for the sole television station in a small metropolitan market. Oscar had earned a bachelor’s degree in marketing research five years earlier and immediately accepted an entry-level marketing research position at the television station because its management had a reputation for honesty and helping small businesses gain access to the mass media. The television station was sold six months ago to an international conglomerate. At that time, Laurence replaced the general manager. Laurence has developed a reputation in the industry of raising revenues and cutting costs.

Laurence just finished reviewing the policies of the former general manager and noted that, although the cost of servicing the numerous small business accounts was high, the profit margin on these accounts was about the same as for large business accounts. Laurence decided that revenues and profits could be increased by 28 percent simply by charging small business accounts proportionately more for television airtime. Laurence calls Oscar and wants him to conduct a survey that would guarantee data that would justify his price increase.

Oscar is dismayed at the prospect of conducting such research. In his college coursework, Oscar had learned the importance of conducting objective, unbiased research studies. Furthermore, Oscar had won a national competition with his senior marketing research project. Through the first two years with the television station, Oscar was consistently complimented by the small business owners that he worked with for his integrity in conducting research studies. It was this work and these compliments that led to his promotion to manager of marketing research.

After Oscar got off the telephone with Laurence, he stared into space and pondered his dilemma. Jobs were not readily available in the town, and he did not wish to relocate elsewhere. Yet if he produced the data that John wanted, it would go against his training and pride in conducting proper research studies. And what about all of those small businesses that have come to rely on the television station for their access to the mass media? How many would be able to pay the higher price for television airtime?

In preparing your response, include responses to the following questions:

What are the relevant facts?

What are the ethical issues?

Who are the primary stakeholders?

What are the possible alternatives for Oscar?

What are the ethics of the alternatives?

• Ask questions based on a utilitarian perspective (cost and benefits).

• Ask questions based on a “rights” perspective.

• Ask questions based on a “justice” perspective

What actions should be taken?

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