Ethical Memo Essay

964 WordsJan 29, 20134 Pages
Memorandum To: Dr. Judy J. Bailey From: Haiyang Zhang Date: [ 8/12/2011 ] Subject: Business Ethic Report Explanation of the Unethical Action I chose the article, For-profit Colleges Face Lawsuits, U.S. Scrutiny, By Stacy Finz, May 1, 2011. This article mainly talked about the fact that cooking schools are facing lawsuits because of unethical operating. According to Finz (2011), “The 46-year-old Matt Foist, believes he was scammed by San Francisco's California Culinary Academy, is one of the representatives of a class-action lawsuit in which a $40 million settlement offer from the cooking school is pending” (p.1). About 8,500 students who attended CCA from 2003 to 2008 could be eligible for up to $20,000 rebates. Career Education Corp., the parent company of CCA also agreed to eat $1.8 million in student debt. According to announcements by students and lawyers, CCA misrepresented and exaggerated its 98 percent job placement rate and $45,000 of annual salaries after graduation. Because they believed that information, many students including Matt Foist spent and even borrowed considerable amounts of money to finish CCA; however, many of them are not able to find suitable jobs with the useless diploma. Ethical Principles Involved The unethical event involves several principles of business ethics. I will mainly discuss three: trust, leadership and business plans. First, Ethical executives and owners are expected to be honest and truthful in all their dealings and not deliberately mislead or deceive others by misrepresentations, overstatements, or any other means. In this case, CCA misrepresented and exaggerated its job placement rate and potential salaries. I believe that CCA executives were trying to keep the college in a competitive position to attract more students as many other private colleges or

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