Business Ethics – Midterm Examination
Fall 2016Often times, both in class and in the media, you will hear the term “corporate
culture.” Thus far, we have discussed and analyzed various theories and how the corporate
culture is developed, altered, and maintained.
As future business managers, you may be placed in a situation that requires you to
act as a rudder for the business’ ethical direction. For the examination, there is a fact
pattern that details the business environment you have just entered. You are tasked with
writing the new business code of conduct to help “right the ship” after a slew of missteps
and mishaps, by both upper management and entry level employees.
Please rely on the material in the handout that is found in Week 4 as a Supplemental
Item in Blackboard. Use the format and examples set there.
While you may collaborate with other individuals in class, please note that you must
turn in your own variation. This is very much and individual project.
The call of the question and directions for answering will be found at the end of the
To: New President of the Board of Directors
From: The “interim” CEOWelcome to 32 Entertainment, Inc.! We are very excited to have you aboard. As we
discussed in our initial meeting, we drastically need to change the direction of the company
after some very unfortunate events occurred. While we understand that our reputation
may have been bruised by said events, we believe that we can salvage the company as long
as we have the right ethical tone to carry us forward. I have summarized each of our recent
issues to help guide you.
About a year ago, one of our staff accountants discovered a an account labeled
“Atlanta Expenses” that had very large deposits and withdrawals that were not traced to
qualified or detailed expenses. After further investigation, and a private investigator, we
discovered that the funds from said account were being wired to an account with our COO’s
name on it! We have been able to distance ourselves from the COO and the media never got
wind of the account so the public is clueless (as of now). However, more than $375,000.00
went “off the books.” Some of the COO’s closest colleagues as well as other officers of the
company are being questioned. We need to clean that department up!
As you are aware, we have two major stories that seem to be trending in the media.
First, there is the alleged sexual harassment case with Patricia Party, one of our Vice
Presidents, and the junior sales associate Brad Bland. Bland is claiming that after engaging
in a consensual relationship with Party for more than a year, and by the way she is 30 years
his senior, he broke it off. However, he claims that since he broke it off in May of this year,
Party has been calling him day and night, texting him, emailing him nude photos, and even
groping him in the halls, all in an attempt to win him back. He has now filed a lawsuit
against her and the company. He claims that not only was there a violation, but our
company does not have proper training or prevention programs in place.
The other major story is our pollution problem. As you know, we specialize in
plastics. We have been hammered in the media recently for our lack of initiative in
reducing our carbon footprint, particularly with our manufacturing plants in Brazil and
Thailand. One media outlet claims we are “behind the times, antiquated, and just plane
stupid.” We need to change our culture. However, these foreign factories are essential to
keeping are profit margins robust - find a balance!
Lastly, we have struggled in our charitable contributions department. We need to
create a culture of giving, but we don’t have a direction or even a good cause. We need a
philosophy to get behind.
And don’t forget – we are 32 Entertainment, Inc. We sell plastics to the prop houses
for movies and television shows. We employ 2,500 people worldwide and are based out of
Los Angeles, California – where the stars live.
Here is what I need you to do:
1. Create A Code of Conduct that will not only address the specific problems,
but lay the general foundation for a new corporate culture. It needs to be
both generic (broad) and specific to us. We are looking for 8-12 ethical
2. Draft a company mission statement – short and sweet. Have it try and
incorporate the feel from the Code of Conduct.
3. Lastly, I need you to tell me how we are going to implement this. Give me
details on how all 2,500 people will be trained, reminded, and eventually
start believing in the corporate shift in our ethical tone.
4. The final product should be somewhere between 10 and 20 pages double
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