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Textbook : Textbook: Business Ethics: Decision Making for Personal Integrity & Social Responsibility, 5th edition, Hartman, DesJardins, & MacDonald, published by McGraw-Hill/Irwin (ISBN: 978-1-260-51293-9)
Instructions: This is a take-home exam, to be completed individually. You may refer to any course materials to answer the questions, but you will also need to do some research using outside sources. Answers are to be typed, single-spaced, clearly labeling question numbers and/or letters. Be sure to cite all sources using an accepted citation style (not just URLs – be sure to include author/source, date, title, publication, as well as information the reader can use to find the source). Having more sources is preferable and shows command of the information. Please submit your finished exam via WyoCourses. Proofread your answers!
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The exam consists of two questions, each worth 25 points. If you have questions about the exam, please send me an e-mail. Finished exams are due no later than Friday, July 1, 11:59 p.m.
- One of the topics in Chapter 8 on ethics and marketing is “sustainable or green marketing,” followed by sustainability issues in Chapter 9. A particular problem related to this topic is “greenwashing,” the practice of promoting a product by misleading consumers about the environmentally beneficial aspects of the product. The goal of this question is to identify potential greenwashing and analyze a potential instance using the FTC guidelines. First, review the guidelines described below:
Electronic Code of Federal Regulations
Part 260—Guides for the Use of Environmental Marketing Claims
https://www.ecfr.gov/current/title-16/part-260
The Federal Trade Commission Act regulates marketing practices to protect consumers from unfair or deceptive practices. In Part 260, the FTC lays out guidelines related to environmental marketing claims. Note §260.2 for an overview statement and §260.3 which provides general principles applicable to all environmental marketing claims. Subsequent sections discuss specific types of environmental claims, with examples of both deceptive and non-deceptive claims.
After looking at this site and familiarizing yourself with the types of claims that might be made, find an example of a product about which environmental claims are being made [either online or looking at a physical product]. Determine whether the claims relate to compostability, recyclability, degradability, nontoxicity, etc. Examine product packaging and/or promotional material (ads, point-of-purchase displays, or whatever marketing communication devices are used) to determine whether the claims seem to be clear and straightforward or seem deceptive.
Write a description that includes:
a. The brand name and product description of the product you have selected
b. Packaging material, copy of ad(s), photo(s) of promotional material – whatever you found that carried the environmental claim(s) about this product [attach photos and/or copies of these, plus relevant hyperlinks, and refer to them in your paper]
c. Statement of what type of environmental claim(s) is(are) being made
d. Your analysis of whether the claim is clear and supported or appears to be deceptive
e. Your conclusions as to the ethicality of the company’s actions with respect to these claims and your recommendation for change or continued use of the claim
- One of the topics examined in Chapter 10 is executive compensation:
a. Explain the ethical implications of executive compensation.
b. View the video posted in the Chapter 10 module that covers the ethics of executive compensation. What is your reaction to this video, regarding the ethical implications of compensation? What positions presented in the video do you agree with the most and why? Do you think the ways that executives are typically compensated are fair?
c. Assume you are on the compensation committee of your board and have been asked to propose a compensation structure to be offered to the next CEO. Explore the following websites on executive compensation (you may use other credible sources as well) and discuss factors you would include when determining CEO compensation at your corporation.
http://www.sec.gov/news/speech/spch120304cs.htm
https://blog.nacdonline.org/posts/leading-minds-discuss-pay?_ga=2.2378483.276386016.1561248549-898397120.1561248549
https://blog.nacdonline.org/posts/executive-pay-tumultuous-time?_ga=2.261818190.276386016.1561248549-898397120.1561248549
https://www.nacdonline.org/files/FileDownloads/PDF/ExecutivePayDynamics.pdf
https://www.nacdonline.org/files/FileDownloads/PDF/November2012DirectorProfessionalism/Executive%20Compensation.pdf
https://blog.nacdonline.org/posts/compensation-succession-planning
https://blog.nacdonline.org/posts/structuring-clawbacks
https://blog.nacdonline.org/posts/culture-rewards-system
https://blog.nacdonline.org/posts/revisiting-scope-clawbacks
http://moneymorning.com/2013/04/19/ceo-pay-now-7000-an-hour-350-times-the-average-workers/
d. Based on a-c above, write a memo addressed to the chairman of the board of your corporation, explaining your proposed compensation approach and rationale for it. You may include this content in letter d of your response (or) attach a separate memo document, whichever you prefer.
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