Read the Shield Financial: Overheard Trade Secrets on page 276 in the text. Discuss the questions at the end of the case: a) What are the ethical issues involved in this case? b) What are the possible actions Bloom could take? c) What are the possible reactions from the (that is, customers) to Rowland’s information? d) What is an ideal course of action given all of the issues involved?
Response Author Date/Time
Class- Professor Dervis 8/12/2012 12:09:13 PM
RE:
Class-
Omer Mennan Guler
Modified: 8/19/2012 11:04 PM
8/19/2012 11:03:58 PM a) What are the ethical issues involved in this case?
I think that Rowland's first attitude is not unethical. Because, talking about his company's secrets in public places, is the competitor's fault.
But Rowland did a big mistake by sending the e-mail, without talking his manager. b) What are the possible actions Bloom could take?
Bloom will give a warning to the Rowland. Because, repeating a situation like this, will cause big problems in the future.
c) What are the possible reactions from the (that is, customers) to Rowland’s information?
Defining a price strategy according to this information couldn't be unethical. Because, they are not deceiving customers. d) What is an ideal course of action given all of the issues involved?
In my opinion they will set up their price according to this info. Because they can't close their ears to an information about competitor.
They should compete for their continuity.
RE:
Class-
Darlene Shenier 8/16/2012 8:35:04 PM a) What are the ethical issues involved in this case?
The ethical issues are that he is not acting with integrity or fairness, going against the "laws of the universe" by Stephen Covey. He is not acting in service his organization rather he is dis-servicing his organization by putting them in a bad situation and going against the organization's values. b) What are the possible actions Bloom could take?
Bloom could counsel and/or fire Rowland. Also, the competitor can be informed of the situation so that a suit is not brought up on the organization.
Take the problem head on and get it resolved. c) What are the possible reactions from the (that is, customers) to Rowland’s information?
This can be portrayed to the customers as devious and malicious and may make the customer not trust the salesperson and organization. The customer may not want to do business with an organization run in a devious way. d) What is an ideal course of action given all of the issues involved?
I think coming clean is the best thing to do. Get it out in the open and not keep it a secret and get it resolved.
RE:
Class-
Sandy Conover 8/15/2012 9:33:02 PM a) What are the ethical issues involved in this case? The eithical issues are that Rowland has basically stolen the competitions ideas and done so by eavesdropping on a private conversation. b) What are the possible actions Bloom could take? Bloom could terminate Rowland, or demote him. c) What are the possible reactions from the (that is, customers) to Rowland’s information? If it were me even if the information is good I would still have issues with how he came about gathering this info. He would lose my respect and trust. d) What is an ideal course of action given all of the issues involved? The email need to be deleted and disciplinary action need to be taken. Call the group together and address the issue and the ill gotten information.
RE:
Class-
Justin Butcher 8/15/2012 4:05:46 PM
While I understand the textbook answer, I have a hard time truly beieve that
Rowland did anything wrong outside of not speaking with his manager first in regards to how to share the information with the appropriate people. The facts are that Rowland was in the right place at the right time, and if there are any major issues with this case, then the issues are with the competition discussing their business plans in a public setting.
RE:
Class-
Sandy Conover
8/18/2012 10:42:00 PM
To me its a matter of principle. He technically stole information from the competition. There need to be honesty and integrity in business.
If every business had integrity we wouldnt hear of thing like this. I think he definiately belive that he did some thing wrong. When you by pass management to post something it tells me that you belive that management wouldnt agree with what information you got or that they would want it out there.
RE:
Class-
Justin Butcher 8/19/2012 7:47:03 AM
I understand and respect your answer. However I still have a hard time believing that he did anything wrong. If the competition is so neglectful as to drop their own playbook in your lap then why shouldn't you use the information for personal gain. The purpose of any business is to make money, and while they should do things in such a way that is ethically sound there is no reason to believe that because the competition is unable to keep "operational security" in check that you as well as the company you work for shouldn't use any information you can get so long as you didn't blatantly break into someones office. No business is going to ignore insider information so long as the source itself is valid.
RE:
Class-
Joseph Rossi
8/19/2012 11:04:13
PM
Unless of course your signatory to a non-compete, non-circumvent, non-disclosure aggreement, that most sales organizations ask they're sale reps sign
of on now a days, and then I bet you regard that situation a little more highly regarded... especially if your held accountable for violations to any of the covenants of the disclosure's.
RE:
Class-
Nicole Kellett 8/15/2012 6:41:10 PM
Yikes, after reading that it just seems kind of underhanded. While it is nice to have overheard the pricing strategy of their competitor so their company can take actions based on that information it still seems inappropriate for that employee to tell everyone at the company what he heard. He should have told his supervisor what he had heard and let him make the decision as to who should know the information that he had. It was foolish of the competition to be discussing confidential company information in a public place and it is entirely their fault that their information was leaked. A repercussion of his action could be that word could get back to the competitor that Shield has their pricing information and Shield may take actions based on their information and may actually be set up for disaster if Allsafe changes their strategy.
RE:
Class-
Linda Dean 8/15/2012 4:33:45 AM
The ethical issues involved in this case are honesty and integrity. Rowland overheard classified company information from a competitor. The question he raised to himself was “What should I do with this information”? his response to the question was to tell everyone.
Bloom is the Sales Manager, and it is up to him to dictate and demonstrate the ethics policy of the company, in order for the salespeople to follow. One action that bloom could take is to reprimand or fire Rowland for not consulting him before sending out such information; another would be to require Rowland to take an ethics class. Bloom could also call a meeting of the sale staff, including Rowland, to discuss the memo and explain the company ethics policy, essentially making an example of Roland. If this information gets out to their customers, it could jeopardize the honesty and integrity of the company, as well as future sales.
RE:
Class-
Danna Alcalde 8/15/2012 9:04:26 PM a) What are the ethical issues involved in this case?
I have to agree with Linda, but instead of 2 issues its more like three honesty, integrity and respect, Rowland did not respect the competitor conversation and was going to use the information for personal gain, he did not seek for advise before sending this information out, this can potentially harm his own companies integrity and honesty because the competitor would questioned how they got a hold on that information.
b) What are the possible actions Bloom could take?
This seems as a first offense therefore Bloom would write him up and report this in his file, Bloom can possibly fire Roland.
c) What are the possible reactions from the (that is, customers) to Rowland’s information?
I also agree with linda on this the honesty and integrity of the company will be affected if this information gets out because the customer will feel their information is not protected.
d) What is an ideal course of action given all of the issues involved?
All member meeting needs to called therefore all issues are address promptly and explain and go back to understand company ethics.
RE:
Class-
Anthony Haynes 8/15/2012 6:55:30 PM
I agree with Linda, integrity based on the fact that these individuals were having a private conversation and Rowland had no business ease dropping on their conversation. Bloom should counsel Rowland if not consider firing him, because if he did it to them what might he do to this company's private information. He can't be trusted or has very poor judgement skills and the company may be seen as responsible for his behavior or the customers may think they condone it. There needs to be ethical training for all staff, a letter of apology sent to Shield Financial , plus all who received the email and suspension of Rowland without pay.
RE:
Class-
Sandy Conover 8/19/2012 9:27:21 PM
I agree with you Linda. Bloom is the Sales Manager and he should have been consulted be for Rowland sent the email out to his fellow collegues. By Rowland going back and not talking to his sales manager bloom would have been behind the 8 ball.
RE:
Class-
Guido Bonilla 8/12/2012 10:01:35 PM
Modified: 8/12/2012 10:15 PM
Professor Dervis,
I would like to share a story I heard while in high school. I recall a teacher in high school telling us a story about two competitors in the same industry. The story goes that one competitor bought the trash of the other competitor so, they could see their projects, plans, financial status and try to find any confidential information. In one of the occasions, one of the designs for the competitor was about to be launch, but the idea was still in a form of a rough draft while found in the trash. After found, the competitor considered to be an excellent idea and immediately gave the rough draft to their design department. The design department made a few adjustment, then it was made into a prototype, was authorized by upper management and to the production stage the product went. The competitor made millions out this stolen idea since they were able to launch the product weeks earlier compared to the competitor's original product. My teach said, that many corporations try to steal the ideas of others which in return could be economically beneficial, but ethically it lacks of creativity and honesty. So, he recommended that if we ever have an idea in rough draft state, to make sure to destroy it after coming out with the final idea so, nobody will steal our idea an use it in their own benefit. In other words, any employee has to keep their future plans in a confidential way, so topics could be discussed behind closed doors to avoid leakage of information, as well as employees always consulting with their immediate supervisors any finding from the competition to avoid legal issues.
RE:
Class-
Charmayne Cockburn 8/15/2012 9:00:49 AM
I enjoyed this story and completely agree. Some salespeople will do anything to make a buck and that is why their are so many negative attitudes to highly companies. People get caught up in the idea of making a large pay cheque that they do not think about who they may be hurting. This is the same when it comes to stealing peoples ideas. They either do not have a conscience or do not listen to it. It is sad to think that society would go as far as this just to make themselves known.
RE:
Class-
Jason Obrock 8/15/2012 6:42:38 PM
There are many things that people will do and it is unnerving. Sales does get negative publicity because of the few people that try to sell the largest thing to everyone instead of making the product fit the customer. The customer has to see the benefits of the more featured product
or they will not be satisfied.
RE:
Class-
Professor Dervis 8/14/2012 6:35:53 PM
Good story! I appreciate you sharing this.
Jocelyn
RE:
Class-
Amy Hooper 8/15/2012 6:10:43 PM
Guido, this is a good story, thanks for sharing. I think this tends to be a common practice even on a smaller level. This reminds me of a manager or co-worker taking credit for something you did.
Unfortunately I have been victim to this several times. While it really makes me mad, it has taught me to never do that to someone else. I guess in the end it has made me a better person because I would never take credit for someone else's work and I would never steal someone's idea without their permission. It's just wrong if you have a conscious.
RE:
Class-
Wendy Mayorga 8/18/2012 2:51:22 PM
Thanks for sharing this story. It makes complete sense that private matters like discussing ideas on a business should be kept in closed doors.
The ethical issue is that Rowland lacked integrity, and honesty.
Should he have sent an email to everyone on what he heard, probably not. He should have been more discreet on going about sharing what he heard. He also shouldn't have taken notes and written down everything, Is he at fault for eavesdropping I don't think so.
My question to everyone is if you overheard a competitor discussing strategies and ideas would you realistically not stay and listen. I know I would stay and listen and share the information I heard with my boss. But that's about as far as I would take it. I don't think this makes me a bad person or Rowland a bad person. Those two business men should of had better sense than to discuss those matter in detail in a public place.
Shield
Case
Study
Meghan Buonanno 8/13/2012 2:41:02 PM a) This case study is full of ethical dilemmas. First, Rowland found himself in an ethical dilemma involving his competition. He should have realized that eavesdropping might not be the best decision and is not ethically correct. Also,
Rowland faced ethics when he decided to share the information that he found out unethically. Actually listening to the conversation that his competitor was having is one thing but sharing the information is another. Rowland also came across an ethical dilemma when he didn't consult his boss before releasing the information he found out unethically. This was an ethical situation dealing with superiors. b) There are a few different paths that Bloom could take when addressing Rowland's ethical dilemma. The first and most drastic would be to fire Rowland and send an email to all the employees telling them to forget the email that Rowland sent ou.t This would be the most ethical solution that Bloom could take. Another action that Bloom could take would be to punish Rowland by taking away any conference trips that he has the opportunity to attend in the future. He could also hold a conference with the employees about ethics and the business's position on them. With this solution he could also choose not to use the information that they learned to prove how an ethical salesperson should act. The final solution would be to ignore that Rowland did anything that was unethical and use the information to the companies advantage. This would be the most unethical and wrong decision. c) The field could either be impressed by the information that Rowland gathered or they could be disgusted and not want to do business with Rowland. Either way what he did was ethically wrong. d) Given all of the issues involved in this case I think that Bloom's best course of action would be to reprimanded Rowland and take away his opportunities to attend future conferences. He should also hold a conference with his employees about ethics and the companies view on ethics so that everyone is on the same page. Finally, the most ethical thing that he could do and the best way to show his employees how the company expects them to behave would be to ignore the information that Rowland obtained unethically.
Ethical
Leadership
Cheren Werner 8/13/2012 7:04:23 PM
Definition of a "trade secret" is "any information that can be used in the operation of a business or other enterprise and that is sufficiently valuable to afford an actual or potential economic advantage over others". Determining whether the acquisition of competitive intelligence or its use violates a legal or ethical standard is complicated.
There are overlapping and occasionally inconsistent federal, state, and common law constraints.
An example would be in Proctor and Gamble Values and Policy Booklet. It states
"We collect competitive information through proper public or other lawful channels
but do not use information that was obtained illegally or improperly by others, including through misrepresentation, invasion of property of privacy, or coercion."
Unilever also has a similar statement, which it terms the Code of Business Principles.
The code states that: We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. We shall similarly respect the legitimate interests of those with whom we have relationships…
Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all application regulations." http://mba.tuck.dartmouth.edu/pdf/2005-1-0095.pdf
RE: Ethical
Leadership
Nitin Malhotra 8/14/2012 9:48:19 AM
Broadly speaking, any confidential business information which provides an enterprise a competitive edge may be considered a trade secret. Trade secrets encompass manufacturing or industrial secrets and commercial secrets. The unauthorized use of such information by persons other than the holder is regarded as an unfair practice and a violation of the trade secret. Depending on the legal system, the protection of trade secrets forms part of the general concept of protection against unfair competition or is based on specific provisions or case law on the protection of confidential information
RE:
Shield
Case
Study
German Goicochea
Modified: 8/13/2012 8:47 PM
8/13/2012 8:25:37 PM
The ethical issues involved in this case is one of Shields financial employees sharing the confidential information with the rest of the members, without the permission of his lead manager. This vital information from their competitors consisted of their overall pricing strategy, and their marketing strategy. In addition, Bloom took notes down while listening to their conversation which is another ethical issue since it is not right to invade others privacy. With these actions occurring, consequences can be implied on behalf of Bloom such as suspension to termination, considering the fact that the organization can receive serious consequences as well. Some of these consequences in regards to the organization itself, can be a bad credibility rate from consumers causing the company to lose its respect and loyalty form the public.
Furthermore, the best way to handle this situation, will be to disregard the information and enforce strict guideline to obtaining other companies information, in order to prevent this issue from reoccurring,
RE:
Shield
Case
Study
Guido Bonilla 8/14/2012 6:24:59 PM
German,
Like you, I definitely consider Shield's financial employee sharing information with the rest of the members without permission from his lead manager as an ethical issue. Not only because he stepped on his toes, but the legal repercussions from this act if the information leaks through the grapevine within the company into the competition. Trade secrets, like the word says, are secrets that should be kept privately among just a few members to investigate if the information could be of some use or it could be of so much trouble for the company. In other words, not only Rowland became unethical in his behavior, but he also stepped on his boss' toes and got a lot of the higher up management in trouble by sharing information that could create legal actions toward the company, especially while the information was transmitted via email in where some companies are obligated to share information that could be consider public records. For example, Martha Stewart, who received information from sources in regards stocks were about to plunge for the company ImClone were she had tons of money invested. This type of information caused her and lot of people legal actions. http://www.msnbc.msn.com/id/6205192/ns/businesscorporate_scandals/t/stewart-begins-serving-jail-term/
Shield
Financial
Case
Meghan Frace 8/14/2012 12:46:07 PM
A.) The ethical issues that have risen within this case was that Rowland took notes about the pricing strategy of his companies largest competitor. The problem was that
Rowland saw this as an amazing advantage for his company and chose to send an email to all employees, including his manager and president of Shield. Rowland gave all information about pricing strategies of his competitor which is ethically wrong for business because the information was not intended for him, and if the competitor knew he was sitting behind him, then that conversation probably would have never happened.
B.) Some possible actions Bloom could take is firing Rowland for taking unnecessary actions with crucial information before consulting his superior about the information he had collected. If Rowland came to Bloom first with the information, then they could have talked about what he knew from the conversation and if it was even credible, but Bloom could never truly know for sure if it was because the only side of the story is Rowland's.
C.) Possible reactions from customers is that the business is conducting in ethically
wrong business procedures and practices. Also, that the company is conducting themselves in a wrongful matter to where they will do anything to get business, even if it stealing ideas and practices from other successful companies. Customers may feel as if the company is not doing well, therefore would rather do business with a company that they do not have questions about when it comes to their business ethics.
D.) The ideal course of action would be to let Rowland go, and for him to hand over all notes about the conversation he listened in to. Also, Rowland should not be allowed to give the information he knows to any other company because it would discredit the company of their practices, but in the end could make Rowland's professional career end in a bad way.
RE:
Shield
Financial
Case
Linda Dean 8/16/2012 4:53:12 AM
Hey Meghan, I agree with you that Rowland's first mistake was taking notes about what he was hearing from the competitors. First of all, he didn't know if it were true, I also agree that he should have consulted his sales manager to verify the information before distributing it to everyone. This makes the company look bad to its customers, because honesty and credibility comes into play here. Bloom could have a meeting for all salespeople explaining the situation with the memo and going over the company's ethical policy, so this doesn't happen again. Rowland at worst should be fired, or at best, be required to take an ethics class.
Ethical
Dilemma
Samantha Donohue 8/14/2012 2:00:08 PM
All the way around this was just a bad idea. In a situation like this you cannot go based on hearsay. He could have possible taken everything they said out of context, or they may have known who was sitting behind them. Anything is possible. In my opinion Rowland should have spoken to his manager before he sent out his memo. All you can do in life is work hard and is a good person, and the choices you make will change the way other people perceive you in that light. Rowland may have changed the way his peers see him now and may have jeopardized his reputation or possibly the reputation of the company. All in all it was just a poor judgment call on Rowland’s part.
RE:
Ethical
Dilemma
Professor Dervis 8/14/2012 6:39:17 PM
Samantha
I am not sure what you mean about taken it out of context.
Can you expand a bit?
Thanks!
Jocelyn
RE:
Ethical
Dilemma
Samantha Donohue 8/16/2012 4:44:03 PM
He was ease dropping on someone else’s conversation, he may think he heard one thing but could be completely wrong. He may have misunderstood what they said or may have taken what they said out of context. Without hearing it directly from them he cannot verify that what he heard is accurate, he has no credibility in that respect.
RE:
Ethical
Dilemma
Balwinder Singh Brar 8/17/2012 11:37:31 PM
Modified: 8/18/2012 1:12 AM a) What are the ethical issues involved in this case? He has stolen the company information and has not acted with integrity
RE:
Ethical
Dilemma
Meghan Frace 8/15/2012 12:56:35 PM
I don't think he took it out of context because they were talking directly about their company and their practices for the year. He was easily just eavesdropping in on the conversation which is easily to do when you are in close corners of other people and their conversations between one another. He knew exactly what they were talking about and thought that the
information he learned would be a great advantage to his company and should act upon it. What he shouldn't have done was to share the information he learned without consulting his manager.
RE:
Ethical
Dilemma
German Goicochea
Modified: 8/15/2012 8:55 PM
8/15/2012 8:15:39 PM
Good point, I don't think Bloom took the whole story out of context,
I just think he probably exaggerated just a bit. Sometimes people get overwhelmed and make up additional information based on what they heard. Then again I blame both parties here, which is Bloom for sharing confidential information with out knowing whether this was true or not, and most importantly not addressing this to the manager first. Secondly, their competitors should have strict guidelines in regards to discussing business related material outside of the organization.
Trade
Secrets
Loren Jones 8/14/2012 8:53:29 PM
Rowland definitely got himself into a bit of a pickle with this situation. Eavesdropping on his competition wasn't so horrible, it was the after effect. In no way shape or form should he have shared this information with his other co-workers. He should have taken things to his supervisor and let them deal with it. He should be terminated for such behavior and his boss much do damage control with the other associates.
RE:
Trade
Secrets
Professor Dervis 8/15/2012 9:34:11 AM
Loren - According to this week’s readings, what are some of the pressures facing sales managers?
I appreciate your posting!
Jocelyn
RE:
Trade
Carlene Watson 8/15/2012 5:05:18 PM
Secrets
Some of the pressures facing sales managers are they have to decide whether they will make decisions based on their own moral values, on what is most profitable, or on the values and policies of the organization.
RE:
Trade
Secrets
Danna Alcalde 8/17/2012 1:07:27 PM
I absolutely agree with you carlene, even on interview questions; companies test the way you would make a decision and how you decide, most companies want you to make a decision that is a WIN/ WIN situtation , what I mean by this is companies want the customer to feel like they have won and the company is win by not losing the customer or lossing profit. Being in retail and banking is very similar because I have worked with two good companies that have good ethical values and know that who pay us is our customer this is why our focus is to better serve our customers.
RE:
Trade
Secrets
Guido Bonilla 8/15/2012 7:53:42 PM
Carlene,
Indeed, managers are facing with decisions based on their own moral values. Our week 6 lecture defines the moral reasoning as relativism and idealism. For instance, relativism is when managers make a decision based on their own personal values and based on each individual situation.
For instance, sometimes managers are faced with decisions in where they know the customer is taking advantage of the situation to get a large credit on their bills or an extra discount in their current promotion. Now, as far as idealism, managers make their decisions based on a clearly defined set of moral values and label actions as ethical and unethical.
For example, allowing some employees to take more sales than others by putting them in strategic territories because these employees are relatives or friends. This type of decision could fall in the unethical criteria of the idealism. Managers face multiple decisions in their professional lives, but I was told once that we always have to trust our instincts, because our instincts will never betray us.
RE:
Trade
Secrets
Loren Jones 8/15/2012 10:40:36 PM
Some of the pressures facing sales managers are quite complex. Not only do they have to balance their personal morals and their professional morals, but the also have to decide right vs. wrong and also right vs. right. Doing the right thing is not only challenging but also may not align with how you really feel. Doing what's right for business isn't always the popular choice and sometimes can send you home feeling horrible. When interviewing, its important to ask such questions like this to even see if a particular job is a good fit. Its also challenging when companies make changes that seem to disalign with certain things ethically.
RE:
Trade
Secrets
Alina Pham 8/16/2012 8:15:46 AM
According to this week's readings, there are pressures facing sales managers are address that managers must decide whether they will make decisions based on their own moral values, on what is most profitable, or on the values and policies of the organization. The company must, therefore, encourage a climate that rewards ethical behavior. Also, they need to recognize that there is a problem to be resolved, they research the facts and review the various options with respect to legality, correctness, and benefit to the organization, and then make the decision. In addition, sales managers must make ethical decisions related to a number of issues, such as hiring and firing, territory assignments, expense accounts, accepting gifts and bribes, and entertainment.
RE:
Trade
Secrets
Balwinder Singh Brar 8/16/2012 11:55:28 PM
One of the biggest challenges facing sales and product managers is keeping their sales force current with the many launches affecting their product lines.This puts pressure on sales managers to be really sure that their employees are proficient in all aspects of their product.
RE:
Trade
Secrets
Meghan Buonanno 8/18/2012 7:01:28 PM
According to this week's readings it is clear that the pressure facing sales managers is how to solve problems ethically. They face the struggle between what they believe is morally correct, what the company policy is, and what would get the outcome that is expected the quickest way. While I believe that I would always choose what I think is morally correct sometimes the situation is tricky and the correct choice is not always clear. The pressure to make the right decision can really wear on a manger and they must learn how to balance what they believe is morally correct and getting the results that they desire.
RE:
Trade
Secrets
Charmayne Cockburn 8/18/2012 11:33:13 AM
It is easy for a sales manager to become over whelmed with what he/she is taking on. Sales managers deal with a lot of pressure to make sure the sales people are performing their duties to the fullest. If a sales manager does not fully understand what is needed to be done then the rest of the team will fall apart.
RE:
Trade
Secrets
Meghan Frace 8/19/2012 9:21:46 AM
Managers have the responsibility of making ethical decisions based on their moral values. It is important for managers to be the ethics teachers of the organization when selecting field salespeople, providing ethical training, and enforce the moral codes of the firm. There are many times when managers do not make the right ethical decisions and up being exploited by the media. This is a negative impact that can occur for the firm based on one bad decision of a manager.
"Businesses which get caught acting unethically suffer much more damage than used to be the case. The press is much more active in investigating and publicising such cases. The population at large takes more interest, has their own views, and is more willing to let their displeasure be known. Pressure groups opposed to some activities of business are much better organised, better financed and better able to attack such businesses." http://tutor2u.net/business/external/ethics_modern.htm
RE:
Trade
Secrets
Cheren Werner 8/19/2012 3:57:57 PM
While all workers must grapple with these common ethical issues, it is especially important for managers to be able to handle them, as they must supervise others, set the tone for a department, create a team and be ultimately responsible for their staffs' actions. A leader often must arbitrate conflicts and make difficult decisions, both of which can be ethically taxing. A leader must send the signal from the top that all employees should respect others and do the right thing. http://www.ehow.com/about_6464369_employee-managementethics-training.html
RE:
Trade
Secrets
LAW
Nitin Malhotra
Modified: 8/15/2012 10:02 AM
8/15/2012 9:59:56 AM
Trade secrets law is concerned with the protection of technological and commercial information not generally known in the trade against unauthorized commercial use by others. The policy basis for trade secret protection is the desire to encourage research and development by providing protection to the originator of business information, and also to maintain proper standards of business ethics. therefore what ever happened with the trade secret going out was unethical
RE:
Trade
Secrets
LAW
Anthony Haynes 8/16/2012 1:49:54 PM
The text talks about the need for government standards for companies to follow, while the lecture talks about Realism vs
Idealism. To me manager must decide on the best decision based on three types of choices their own moral values, societal values and the policies of the organization. It is all a judgement call in my opinion.
#2 Chad Fields 8/15/2012 11:28:32 AM a. I don't see as much of an ethical dilemma with this one as much as the other. I understand it is wrong to take information that is not intended for you and to use it, but at the same time he didn't go out of his way to get it. He just happened to be in the right place at the right time, in a public place for that matter. It is not like these talks were going on behind closed doors. I do have a problem with how Rowland pass a long the information though, he should have went to Bloom first with the information. b. The harshest action he could take would be to fire him but I don't think it would be warranted. Bloom just sit Rowland down and explain to him what he did wrong and how he should have handled the situation properly. If any actual punishment is warranted maybe a suspension for a short period of time. c. I am not sure why there would be a reaction from the customers, he sent the email out to the managers and higher ups of the company so no customers should be aware of the situation. If they were made aware of it I am sure there would be some that would be upset by it and maybe take their business elsewhere. d. I think the best course of action is to give Rowland and long talk maybe a suspension and just move forward. I don't see that big of an issue with the whole thing.
RE:
#2
Ryan Britt 8/15/2012 10:32:37 PM
Chad, Professor, & Class,
In response to "a", this is such an odd situation. I have encountered something like this before myself. I would not say that this is an unethical situation to overhear valuable information, it is simply that people feel that it is unfair. It is an unspoken dissatisfaction with the person who received the information and no one else did that could have benefited from it. For example, I had a manager learn from the grapevine that a certain employee had graduated and begun sending out resumes to other businesses in their field. Because of this information, the manager quickly hired a replacement to make sure they were trained ahead of time and then terminated the current employee. This is not an illegal action but it would be deemed very unethical and frowned upon by most.
Ethical
Dilemma 2
Michael Day 8/15/2012 9:55:27 PM
A) The ethical issues involved in this case are, sending a memo describing the competition's pricing strategy out to people before consulting with his manager.
B) Some of the actions Bloom could take are, suspending Rowland for a week.
Rowland should have went to his manager with the notes he took on the plane. Bloom could have also fired him because he did this on his own. The information that he heard, could have been false. Maybe the Allsafe employees, knew he was sitting behind them and told him falsified information. He should have gone to Bloom first.
C) Some possible reactions from the customers to Rowland's information could be shocked or dumb-struck like Bloom. They could be asking themselves, "Is this true?"
"This can't be."
D) The ideal course of action given all the issues involved is to fire Rowland because he sent out sensitive information with out any consultation with the manager.
RE:
Ethical
Dilemma
2
Professor Dervis 8/16/2012 6:01:27 AM
Michael
After this, what company wide changes should be made in your opinion?
Thanks!
Jocelyn
RE:
Ethical
Dilemma
2
Nitin Malhotra 8/17/2012 10:56:59 AM i think companies should be strict with these regulation on employees, should follow UTSA LAW, the U.T.S.A sought to alleviate the uneven development and "uncertainty concerning the parameters of trade secret protection" by recommending a uniform trade secret law and, at the same time, allowing the states the flexibility to meet local circumstances by modifying the U.T.S.A.'s text as enacted in each state.
In addition to providing some recourse for any uncertainty associated with a patent, the U.T.S.A. also serves to codify the common law remedies that have emerged in many states. These remedies are based on legal precedent set by previous cases, and therefore allow for greater uncertainty, particularly in less industrial states where there have been fewer trade secret cases. The U.T.S.A. notes that any confusion caused by having strictly common law remedies to trade
secret misappropriation was exacerbated by omitting trade secret rules from the second edition of the Restatement of Torts
RE:
Ethical
Dilemma
2
Michael Day 8/16/2012 8:31:18 PM
I think with firing Rowland, you are sending out a statement to the company that you are to verify everything that the employees do. I would conduct a meeting with the employees and tell them they need to come to him before the send out information like Rowland did. I would also invest in a different means of transportation, maybe a company plane, that would stop this from happening a second time.
RE:
Ethical
Dilemma
2
Linda Dean 8/17/2012 4:24:17 AM
Professor Dervis, in my opinion, Shield Financial should require that all current and new sales people take a training class on ethics provided by the company. This will help to reinforce the principles that the company stands for, which most importantly are honesty and integrity.
RE:
Ethical
Dilemma
2
Loren Jones 8/16/2012 9:35:09 PM
First and foremost, Rowland must be fired. He crossed the line and you must set the tone about ethics in the workplace. Also I would make sure that all my sales people and especially managers are properly trained in business ethics and the importance of them.
RE:
Ethical
Dilemma
2
Jason Obrock 8/18/2012 8:29:13 PM
There needs to be training to all employees. There has to be information regarding the type of impact that this secretive information has on the company. A lot of errors with leaking information is generally not known to be a secret and employees just pass it along like it is something normal.
RE:
Ethical
Dilemma
2
Robert Harris 8/19/2012 2:51:01 PM
Before anything can be posted about a competitor is must be brought to a manager who will run the information by the firms lawyers.
Annual training on antitrust, price fixing, etc..
Disciplinary guidelines specifically laid out for future instances.
RE:
Ethical
Dilemma
2
Nicole Kellett 8/18/2012 9:03:21 AM
I don't necessarily agree with firing Rowland simply because he had good intentions, he wanted to share what he believed to be valuable information. If
I were Bloom I would consult with upper management and see what they feel is the best course of action to take. If they felt that firing was the best option that is what I would do, but that wouldn't be my initial reaction to what he did. I would punish him and make sure that he knows that what he did was unacceptable and wouldn't be tolerated in the future.
RE:
Ethical
Dilemma
2
Ryan Britt 8/18/2012 1:10:47 PM
Nicole, Michael, & Class,
The term "fire" is a harsh one, but in many cases, is a necessary course of action. A business' success somewhat relies on its ability to work in an environment where details about how their system, product, or services are secret and only known to the company. If sensitive information were to be leaked out to major competitors, it could be absolutely detrimental to the company. It could verywell lead to its demise depending on the information. There are plenty of good people willing and capable of working for you. The
last thing you need is to keep someone around that thought this kind of passing of information was good. Good intentions or not, you can't have staff that is capable of doing this without the company's knowledge. Terminating his employment is a very viable course of action given the circumstances.
RE: Shield
Financial
Case
Alina Pham
Modified: 8/15/2012 10:19 PM
8/15/2012 10:18:56 PM a) What are the ethical issues involved in this case? It's about integrity and confidentiality. Stealing on other people's idea and listening to others conversation is not an ethical thing to do. He can be naive and think this is coming down to his luck, but if we think carefully twice, this can be a trap and what the two sales persons were talking might be an opposite of what they will do perhaps they already knew the person sitting behind them was from Shield's Financial. b) What are the possible actions Bloom could take?
Bloom will need to reprimand him and may be write him up to straight up all the sales reps for future similar experiences. c) What are the possible reactions from the (that is, customers) to Rowland’s information? They might not trust the company and Shield will loose reputation, in result will cost huge damage to the company in a long run. d) What is an ideal course of action given all of the issues involved? A leave of absent needs to be given to Rowland, he needs to take ethical lessons, and wait until this project is over until he can go back to work.
RE:
Shield
Financial
Case
Professor Dervis 8/17/2012 8:32:57 AM
Alina- You have good points. Salespeople, as boundary spanners, may find themselves faced many ethical challenges because they have to represent both the company and their customers. Common ethical issues specific to sales can include misrepresentation, bribery, and encouraging rogue purchasing.Companies and sales managers can reduce unethical behavior by creating the right ethical climate. Codes of ethics are also useful tools, not only because these can provide guidance to salespeople when faced with ethical challenges but also in the creation of the right kind of ethical climate.
Companies may also create different forms of systems for identifying and responding to ethical breaches.
Thanks!
Jocelyn
RE:
Shield
Financial
Case
Jason Obrock 8/19/2012 8:41:31 AM
Culture has a large impact on how a business operates. Of the culture of the business is to be unethical, the trend will be for more people than normal to be unethical too. If the culture is for the high road and be ethically sound them others will follow that too. The culture of the business will steer the employees to behave in a certain manner.
RE:
Shield
Financial
Case
Justin Butcher 8/18/2012 4:11:04 PM
Ethical codes and other things that help enforce positive behavior are very good. However depending on the situation many of these ethical codes may not necessarily be black and white. Take for instance joking around the water tank. While most business rules state that what you say should be professional and not offend anyone in reality what may offend one person may not offend another there for so long as you are careful about what you say around certain people may be considered acceptable in certain situation while in other situations it may be unacceptable.
RE:
Shield
Financial
Case
Anthony Haynes 8/17/2012 11:40:20 PM
Modified: 8/17/2012 11:46 PM
Professor, I agree that a company wide code of ethics would help set a standard of conduct and guidance for the sales force to refer to whenever placed in an unethical situation. I think that business ethical training is key in this situation and it should be required from the top to the bottom of the organization.
Ethical issue
Ethical
Balwinder Singh Brar 8/15/2012 11:48:04 PM
RE:
Ethical issue
Professor Dervis
Balwinder-
This is blank.
Please post again.
Jocelyn
8/16/2012 6:00:37 AM
Ethical
Dilemma
Samantha Donohue 8/17/2012 9:15:51 PM
I recently had a situation with an employee of mine that was buying things with his employee discount and then selling them to a re-seller for a cut of the money. He was a young kid who was put in a situation where he made the wrong choice. It was later brought to our attention that this particular re-seller had attempted to bribe employees in other stores as well, but it was already too late. Unfortunately because this employee did in fact take money from the customer he was let go. Bribery is highly frowned upon in my company as well as misuse of the employee discount. This is a perfect example of an ethical dilemma gone wrong. You never know what people will do when they are put in this kind of a situation, especially when money is involved.
RE:
Ethical
Dilemma
Alina Pham 8/18/2012 8:42:59 AM
This is one of the best topic I really enjoy reading because it involves in many different opinions. I understand why Samantha thinks it is unethical, but in my opinion, it is considered an ethical thing to do such as to buy things with the employee discount and then selling them to the a reseller for a cut of the money. I think this is how business works, you buy it in a legal way with some sorts of discount, or your employee discount and resell it for a profit. I heard a great story from a young teenager boy buying a whole pizza and then selling it by pieces to make a profit to help pay for his school supplies. I admired him doing that, and I think he is brilliant. To me, unethical behavior is doing something illegal and can causes damage to people's trust reputation.
RE:
Ethical
Dilemma
Samantha Donohue 8/19/2012 4:22:46 PM
In this case it was unethical because abusing the discount in this form is technically considered theft. And the company also believes that resellers diminish the integrity of the brand. And this particular employee was aiding in that process which the company highly frowns upon.
RE:
Ethical
Dilemma
Michael Day 8/17/2012 10:34:09 PM
I have worked with an employee with the same issue. He bought discounted food for $1.00 and sold it for approximately $5.00. He was making money on something that was marked down in my store. I think this is terribly morally wrong but he obviously thought it was morally right. I think people need to have better ethical training in their positions.
RE:
Ethical
Dilemma
German Goicochea 8/18/2012 7:20:31 PM
I can also relate Michael, I have experienced employees steal products from the company, and then sold either online or in person, for a good profit. Most definitely this is morally and ethically incorrect and a harsh punishment should be implemented in order to deliver a strong point. Methods in which companies can avoid certain situations like these, is to go over the consequences if anyone is caught stealing, such as immediate termination, ect. Also set up cameras and a security system to make sure the companies is safe from any loses.
Shield
Case
Study
Demetrius Burgess 8/18/2012 11:56:21 AM
What are the ethical issues involved in this case?
He broke the ethics policy statement that indicates to the sales force that the company believes in playing fair with customers and competitors.
RE:
Shield
Case
Professor Dervis 8/18/2012 12:39:14 PM
Study
RE:
Shield
Case
Study
Cheren Werner 8/18/2012 3:05:45 PM
To lead your team with character and integrity, you must set an example. Your company has to have clear rules about how it wants team members to act. As a leader, it's up to you to know these rules and codes of conduct – and to make sure you enforce them. Demonstrate to your team what you care about. So, if your company values honesty above all else, then make sure you demonstrate that by being honest with everyone around you. Establish consequences for team members who don't follow corporate values.
You need good consequences as well. Set up some kind of reward system for team members who consistently act according to the company values. By getting your team interested in ethical conduct, you communicate how important these values are to both you and your organization.
RE:
Shield
Case
Darlene Shenier
Study
8/19/2012 3:40:13 PM
I agree with Cheren that to ensure that your team is being ethical and honest is to talk the talk and walk the walk. All leaders need to be the prime example. Also, I think that team training and team meetings, reiterating the values that the company represents is important to be repeated so that it is engrained in everyone's mind. Creating the culture and keeping it alive and constant helps.
RE:
Shield
Case
Danna Alcalde
Study
8/19/2012 6:48:03 PM
Great post Cheren, I complete agree with you leading by example is something some manager lack when they want their employees to act a certain way, in all the jobs I have had, I have certain managers who clearly lead by examples and other don't, I absolutely have more respect for the management team that leads by example and are clear of expectations an code of conduct, therefore something that is very important in the work place is integrity, humility and respect. when you have all three in a workplace you have a better environment all around I personally see this way.
RE:
Shield
Case
Amy Hooper
Study
8/18/2012 3:47:19 PM
Cheren, I think you make valid points. In order to expect your sales force to act ethically, you have to lead by example. If you say one thing, but act another, you are sending the wrong message and you will have a hard time reprimanding someone for unethical behavior when you, yourself, are acting unethically. I also think a code of ethics, or a set of clear rules will assist in ensuring the sales force is acting ethically and honestly. Another common tool is the whistle blower policy which helps employees anonymously report unethical behavior and prevents them from having to undergo consequences for their reporting. I think establishing consequences and rewarding ethical behavior is also great advice. It keeps everything balanced. I have seen where a code of ethics is in place, but unethical behavior occurs and nothing happens. This makes for a bad situation and encourages more unethical behavior since there are no real consequences.
RE:
Shield
Case
Study
Carlene Watson 8/19/2012 10:12:30 AM
I would recommend formal training every quarter to reinforce the importance of ethics and honesty. I would make sure the salesforce signs off on each training to ensure there is documentation on file.
RE:
Shield
Case
Study
Ryan Britt 8/19/2012 10:32:16 AM
Professor & Class,
In a perfect world, I think all of the answers to this question are perfect. Lead with honesty and integrity is a great first step. Training is also a great tool to teach employees the way you want them to work.
However, we unfortunately live in an imperfect world with imperfect people. Managers must protect from the worst case scenarios in order to protect their business' success. A system needs to be developed in order to protect from dishonesty and unethical behavior. Checks and balances procedures are the only safeguard against dishonesty, especially in larger businesses. Progress reports, team projects, frequent meetings, supervisor approvals, and software restrictions, are all great ways of maintaining strict control over the actions of employees to protect against dishonesty.
RE:
Shield
Case
Study
Meghan Buonanno 8/19/2012 8:45:58 PM
Leading by example is one of the best ways that you can make sure that your sales force always acts ethically and honestly. When you are in a position of leadership it is important that your subordinates have an example of how to act. If you behave a certain way it will show your employees how they should be behaving. Leading by example is one way to make sure that your sales force always acts ethically and honestly. Another way could be to have harsh punishment for any morally or ethically wrong behavior. For example, if someone is charged with acting unethically then their case could be brought before a committee that makes a judgement on whether their behavior was ethical or not. If they are found to have behaved unethically then they should have a form of punishment, possibly having their last commission taken away and put into an employee appreciation fund. From this fund ethically good behavior could be rewarded. All of these things will ensure that your sales
force always behaves ethically and honestly.
RE:
Shield
Case
Study
Nicole Kellett
8/19/2012 8:00:00 AM
I believe that leading your employees with honesty and integrity and upholding high moral values will show your employees that they should follow your example. As the book describes, it would be a form of coaching called role modeling. My being a role model for your employees you are setting the right example for them to follow.
Also, by having a zero tolerance policy that clearly defines what is and is not acceptable behavior you will hopefully be able to stop the negative unethical behaviors that you are trying to avoid.
RE:
Shield
Case
Ana Gamboa
Study
8/19/2012 11:28:17 AM
Yes i believe that you should set a good example to your employees in order for them to respect you. A good role model manager would be someone who is strict to his employees in terms of abiding with the rules but also is open to them so they won't get intimidated to share.
RE:
Shield
Case
Study
Ana Gamboa 8/19/2012 11:53:16 AM
To make sure that your sales force acts ethically and honestly is to set a good example for them to follow. And to constantly check on them on how they are doing.
RE:
Shield
Case
Study
Balwinder Singh Brar 8/19/2012 2:08:54 PM
Salespeople typically earn a commission for every sale they make. This gives them an incentive to get you to spend more money than necessary
on a product or service. A good salesperson will give you all the information you need to make the right decision. But some salespeople employ unethical techniques to trick or bully you into making a bad deal.
RE:
Shield
Case
Study
Robert Harris 8/19/2012 2:53:10 PM
We have biweekly meetings that have a standing 15 minute agenda item around integrity. The topics range from things that have been uncovered to just reminders of what is and isnt right or ethical
We also have a yearly training that every employee must take before they can sell for that year. It retest their knowledge on all of the laws and ethics that we run our company by. If they do not pass the test, they do not sell until they do.
RE:
Shield
Case
Study
Wendy Mayorga 8/19/2012 3:33:49 PM
I would suggest a zero tolerance for unethical doing. Pretty much if anyone gets caught doing something unethical they would get fired. I think that this would ward off any thoughts or ideas on doing otherwise.
RE:
Shield
Case
Study
Charmayne Cockburn 8/19/2012 7:28:10 PM
To ensure that my sales force always acts ethically and honestly I would place certain guidelines within the company. Making sure the sales force knows these guidelines and fully understands is a must. Communication is important and consequences must happen if they are to not work ethically and honestly.
RE:
Shield
Case
Demetrius Burgess 8/18/2012 12:14:43 PM
Study
Modified: 8/19/2012 3:37 PM
What are the possible actions Bloom could take?
President Bloom should send his sales team and sales mangers to an ethics training course that teaches him why ethics are important, because sales people often look to the sales managers for cues about the company’s ethical stance to help guide their behaviors. When managers exhibit a low standard of moral behavior, the sales force will often exhibit these types of behaviors in front of their customers. As demonstrated in a number of recent salesperson scandals, such behaviors can do irreparable to a company.
Overheard
Trade
Secrets
Robert Harris 8/19/2012 2:49:21 PM
A) Eavesdropping on competitors conversations, price fixing in the market place, etc..
B) He could fire Rowland for this or place him on disciplinary action. Bloom should also pull his entire team together and recover the guidelines as it relates to their competitors.
C) Customers would most likely be happy because Shields prices will be better than that of Allsafe most likely.
D) Rowland should be fired if he has already been trained on antitrust laws and dealing with competitors. Bloom should call a meeting and retrain his entire team and the email should be discarded.
Trade secrets
Wendy Mayorga 8/19/2012 3:38:53 PM b) What are the possible actions Bloom could take? His boss could fire him for not being discreet and emailing everyone on the matter. c) What are the possible reactions from the (that is, customers) to Rowland’s information? Customers would view it as negative, because if Rowland can't be discreet about the competition then how can he be discreet of his customers. Also, if a customer were to leave he would feel very unsafe. d) What is an ideal course of action given all of the issues involved? The ideal action is to reprimand
Rowland for telling everyone and telling him what the appropriate course of action should be.
Shield
Financial
Case
Demetrius Burgess 8/19/2012 3:55:36 PM
Shield
Case
Amy Hooper 8/19/2012 7:58:31 PM a) What are the ethical issues involved in this case?
I think the biggest ethical issue is the fact that he has stolen confidential information from competitors unknowingly and then shared that information with half of the company. b) What are the possible actions Bloom could take?
I think no matter what, Bloom needs to make
Rowland aware of the situation and the issues concerning his actions. Bloom need to tell Rowland that his behavior sets the precedent that stealing competitors information and sharing it with everyone is company standard, when in reality is may not be. He also needs to explain that it is important to lead by example, and what he did is not leading by example. It is also important to discuss this information to ensure that sharing such information is the right choice. This could have legal ramifications, if AllSafe became aware of this. c) What are the possible reactions from the (that is, customers) to Rowland’s information?
I think some customers may find these actions unethical which could damage the reputation of the company.
Customers may lose trust in the company and fear that confidentiality is not critical to the company and that the company could divulge their information to others which could make them uneasy. d) What is an ideal course of action given all of the issues involved?
I think that Bloom should confer with human resources and use the code of ethics as guidance in order to handle this situation appropriately. It may be appropriate for a verbal warning or written warning, or termination if they feel they cannot secure confidential information with Rowland. It makes you wonder would Rowland take information from Shield to a competitor if the price was right?