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Explain the scenario in regards to business ethics

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Iroquois Brands, LTD., a Delaware corporation, had 78$ million in assets, $141 million in sales, and $6 million in profits. As part of its business, Iroquois imported pate de foie gras (goose pate) from France and sold it in the U.S. Iroquois derived $79,000 in revenue from sales of such pate. The French force-fed the geese from which the pate was made. Peter C Lovenheim, who owned 200 shares of Iroquois common stock, proposed to include a shareholder proposal in Iroquois annual proxy materials to be sent to shareholders. His proposal criticized the company because the force-feeding caused "undue stress, pain and suffering" to the geese and requested the shareholders vote to have Iroquois discontinue importing and selling pate produced by this method.

Iroquois refused to allow the information to be included in its proxy materials. Iroquois asserted thats its refusal was based on the fact that Lovenheims proposal was "not economically significant" and had only "ethical and social" significance. The company reasoned that because a corporation is an economic entity, only an economic test applied to its activities, and Iroquois was therefore not subject to an ethical or a social responsibility test. Lovenheim v. Iroquois Brands, Ltd, 618 F.Supp 544, Web 1985 U.S. Dist. Lexis 21259 (United States District Court for the District of Columbia)

1. Is Iroquois correct? Should only an economic test be applied in judging the activities of a corporation?

2. Should a corporation also be subject to a social responsibility test other than profit making when conducting business? Explain.

3. Should shareholders be allowed to challenge the decisions of corporate directors?

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1. Is Iroquois correct? Should only an economic test be applied in judging the activities of a corporation?

In my opinion, Iroquois was incorrect. Economic test should not be the only test to apply in judging the activities of a corporation. A corporation is owned by their shareholders who share in profits and losses generated through the firm's operations. Therefore, corporation must incorporate social responsibility. Building a reputation as a responsible business places apart its position in the society and market. A company's reputation is enhanced on being social responsible and builds its brand appeal. Customers choose to conduct business with highest ethical standard corporate citizens. Therefore, the companies make great deal in positioning themselves attracted to ...

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Ethical Questions Pertaining To Internet Job Rights by attorney Mark Grossman

Weather you're and employer or an employee you should know what your rights are when it comes to Internet use in the workplace. Mark Grossman a Florida attorney who specializes in computer and Internet law gives answers to some basic questions.

Scenario 1
Nobody told you that your Internet use in the office was being monitored. Now you've been warned you'll be fired if you use the Internet for recreational surfing again. What are your rights?

Bottom Line.
When you're using your office computer you have virtually no rights. You'd have a tough time convincing a court that the boss invaded your privacy by monitoring your use of the company PC on company time. You should probably be grateful you got a warning.

Scenario 2
Your employees are abusing their Internet privileges but you don't have an Internet usage policy. What do you do?

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Although the law isn't fully developed in this area courts are taking a straightforward approach: If it's a company computer the company can control the way it's used. You don't need an Internet usage policy to prevent inappropriate use of your company computers. To protect yourself in the future distribute an Internet policy to your employees as soon as possible.

Scenario 3
Employee John Doe downloads adult material to his PC at work and employee Jane smith sees it. Smith then proceeds to sue the company for sexual harassment. As the employer are you liable?

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Whether it comes from the Internet or from a magazine adult material simply has no place in the office. So Smith could certainly sue the company for making her work in a sexually hostile environment. The best defense is for the company to have an Internet usage policy that prohibits visits to adult sites. (Of course you have to follow through. If someone is looking at adult material in the office you must at least send the offending employee a written reprimand.) If the company lacks a strict Internet policy though Smith could prevail in court.

Ethical Questions

A. Do you agree with the advice of attorney Mark Grossman in each of the scenarios? Why or why not?

B. What would your advice be? Explain your positions.

C. Identify any ethical philosophies values or models you may be using in explaining your position in each of the scenarios.

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