Beech Nut Questions

Beech Nut Questions - Finally a contract with the...

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Brooke Galietto September 23, 2008 Business 101 “Beech-Nut and the No-Apple-Juice Apple Juice” Was LiCari overreacting? LiCari was not overreacting. Dr. Jerome LiCari served as the director of research and development for Beech-Nut Nutrition Corporation, therefore it was his duty to detect product issues and ensure the validity and quality of the product. Also, it is one’s ethical duty to question and research any suspicions or rumors he hears about his company. Also, when LiCari was finally able to prove the presence of substances alluding to the use of adulteration in the juice, it was again his duty to report these findings. LiCari realized that this evidence could potentially close his company; he was simply maintaining Beech-Nut’s best interest. What pressures contributed to Beech-Nut’s unwillingness to switch suppliers? Beech-Nut faced severe economic pressures. Due to serious debt, a weak hold on the baby food market, and an outdated plant, the survival of Beech-Nut was unlikely.
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Unformatted text preview: Finally, a contract with the Interjuice Trading Corporation eliminated their troubles. The contract allowed Beech-Nut to purchase its apple juice concentrate at a price 20 percent below the market price. Beech-Nut felt this contract was the key to its surivival. • How could the ethical check questions helped Lavery, and Hovyald deal with this problem? If Lavery and Hovyald had referred to the ethical check questions they probably would have seen the ethical issue more clearly. They would first have to examine whether or not the action was legal. Then they would determine if it was balanced, or if it seemed fair for every party involved. This question would have reminded them to view the issues from the perspectives of others. Lastly, they would have to consider how the decision would make them feel. They would have a hard time answering these questions without realizing that their denial of adulteration was in fact unethical....
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