UGBA 107 - UGBA 107 Professor Ross Summer 2007 07.23.2007...

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UGBA 107 – Professor Ross Summer 2007 – 07.23.2007 Midterm Exam 50,000 Rosstopians have come down with Patitis o Al levels of society although it is predominately concentrated amongst the poor o Country led by Gen. A A Anderson – taking money from the government for his own purposes Impoverishing the majority of the population 1. Profits ‘R’ Us is a publically owned, American pharmaceutical company a. Coming up with a treatment for erectile dysfunction amongst university professors b. Found vaccine for Patitis c. In order to develop vaccine, costs are expected to be $60,000,000 d. Normal profit is 500% of production costs e. $12 billion and earnings were $2 billion f. Wealthy citizens in Rosstopia are closely aligned with the military regime. g. Almost all the country exists in extreme poverty and can only afford $1 for the vaccine i. All, however want the vaccine (20,000,000 Rosstopians) ii. $10,000,000 invested in the vaccine until now 1. CEO must decide the future of this project 2. Given options: a. CFO Brian B. Berkeley – charge $3600 per dosage, sell to all the wealthy, and make normal profits of 500% b. Executive VP George Sigh - $3 per dosage, sell vaccines to all 20 million Rosstopians, cover production costs c. VP of Marketing S.T. Ross - $1 per dosage, make sure all Rosstopians have access to the vaccine d. COO Dean Campbell – Drop project all together
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Discuss the ethical considerations and issues of corporate responsibility behind each of the arguments listed above, and then decide which course you believe the company ought to take. Profits ‘R’ Us faces the problem of balancing its social and ethical responsibilities with its profit and shareholders in mind. The CEO should thus begin by weighing the underlying theories of moral ethics and Corporate Social Responsibility, and make a decision on what he believes is best for the company and on the welfare of society. Corporate Social Responsibility attempts to apply ethics to business, in order to make business behavior and acts consistent with what is right and just for society or its outcome. Profits ‘R’ Us, if intending to act in a manner that is best for society, can take into account the idea of moral ethics, and act as is morally correct. Considering the four scenarios given to the CEO of Profits ‘R’ Us and taking into account the different theories of moral ethics, such as utilitarianism, deontology, and social justice, as well as the theories on Corporate Social Responsibility by Milton Friedman and Reich, Profits ‘R’ Us’ CEO can determine what action is both morally responsible and in the interest of the company. Based on the principles of moral ethics and business’ role in Corporate Social Responsibility, it is just and socially responsible for Profits ‘R’ Us’ CEO to carry out the advice of S.T.
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This note was uploaded on 04/02/2008 for the course UGBA 107 taught by Professor Ross during the Fall '08 term at Berkeley.

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UGBA 107 - UGBA 107 Professor Ross Summer 2007 07.23.2007...

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