5. Are the following practices ethical or unethical? Give your reasons. You may need the expressions from the table below.

to exhibit high level of ethical / unethical performance; to hold ethical responsibility;

to avoid ethical responsibility; to be a clear example of unethical practices

1. When orders dropped in one small manufacturing company, the supervisor knew she would have to lay off⁹ a loyal hardworking employee in two months. Company rules did not allow her to tell the employee in advance, for fear he would quit while still needed.

2. Twice within a five-year period, Johnson & Johnson protected its customers by recalling stocks of Tylenol capsules when poison was found in some Tylenol bottles on store shelves. In a similar case, Parker Brothers voluntarily withdrew its all-time best-selling toy when two children choked to death after swallowing some of its parts. Both companies spent millions of dollars on the recalls.

3. One New York apparel vendor says he lost a 54 million account with one of the nation's largest retailers because he, unlike one competitor, didn't bribe the buyer with $20,000 cars and pricey stereo systems.

4. The best-qualified person for the post of Sales Manager is a female. However, a man has been appointed as far as customers prefer men.

5. One advertising company stresses its honesty, fairness, and ethical business behaviour. At the same time it has factories where wages are very low.

6. Read the passage about unethical marketing. Comment on Nestle’s practice.

Boycotts by ethically motivated consumers can cost big brands billions of euros a year, according to a recent report. Consumers may deliberately avoid in products from companies that they believe act wrongly. A good example is the international boycott of powdered baby milk which followed the publication of a study in the British Medical Journal in 2003. The study revealed that a number of food giants, including Nestle of Switzerland, violated an international code of conduct when they sold their products to some African countries. Very often, the products contained no instructions for the preparation or storage of powdered milk, and no warning against the health hazards of inappropriate use. More importantly, they did not include a statement that breast milk, besides being free, is far more nutritious for newborn babies. Today Nestle has a clear policy on the recommended use of powdered baby milk in developing countries.

Discuss the following.

1. Do you think Nestle now would have a clear policy on the recommended use of powdered baby milk in developing countries if it hadn’t been boycotted?

2. What can a) consumers, b) shareholders, c) employees do to try to change the behaviour of businesses that are behaving unethically?

7. Write a short response on one of the situations suggested giving your point of view and arguments.

1. A colleague in a company which tests medical equipment has been making bad mistakes recently at work. This is because she has a serious illness. You are her friend and the only person at work who knows this. She has asked you to keep it a secret. What should you do?

2. You are directors of a potato snack manufacturing company. Research has shown that any price increase causes an immediate dip in sales (although sales recover within six months). It has been suggested that you could maximise your profits by simply reducing the weight of the product in the packets and maintaining the current price. What should you do?