BUS 245-03 Assignment 1 Fall 2013 Finance/Business in the news Elizabeth Johnson Bailout of the Auto Industry-Toyota There have been so many incidents of large corporations needing bailouts within the auto industry and Toyota is just one of the many that have needed government assistance because of financial troubles. Some people may wonder if it was or is ethically right to do something like this because of all the controversy behind it like the CEO's and the higher ups misusing the money the government gave them to bailout and help their companies. The government can not predict that so in their own way it is justified to keep the economy up and running. With the economic troubles in the US still at a high, the auto industry has taken
Current Ethical Issue in Business Learning Danielle Christine University of Phoenix Ethics in Management PHL 323 Laila Dabbagh Lambdin February 23, 2009 Current Ethical Issue in Business Learning Identify the ground rules manifested in the situation as well as which ethics theories apply. Circuit City is the nations 2nd largest retailer of consumer electronics, entertainment software and personal computers. On November 3, 2008, Circuit City announced that they would layoff and close 17% of it’s workforce by the end of the year. Due primarily to weakened economic environment and its potential impact on the timing of the overall sales of the companies inventory, cost and expenses. As a result of the companies deteriorating
With the presence of economy’s downturn, Ford Motor Company faced with record losses and many union employees were forced to compromise with some cases and in some areas that they may have not before. Such deals were made in effort to keep Ford from globally outsourcing jobs. “The UAW began negotiations in 2007 with the Ford Motor Company and the two other automobile manufacturers to reverse the negative impact the economy would have on profits. “ (Lucas & Furdek, 2010). The guidelines and provisions set within the Ford Motor Company’s agreement with the UAW would bind them legally to fulfilling their obligations.
Capital One Melvin Jackson Professor Shawn Richmond Sr. Seminar in Business Administration May 31, 2010 Identify and describe the key environmental forces that have immediate strategic implications for Capital One. Two key environmental forces that have immediate strategic implications are political and economic. Legislators have been rallying consumer support to reform credit card policies due to the failing economy. Since so many consumers are without jobs or have taken pay cuts in the last few years, the ability for them to repay their debts is severely diminished. Credit card companies had been charging outlandish interest rate.
In the case there is a lot of evidence which indicates that management is not effectively motivating their employees and this is leading to a decline in productivity and profitability. One reason would be management is not giving employees proper incentives to raise their productivity levels and they are using a financial incentive plan with major flaws in its design (Scanlon Plan). Another reason would be the decline in suggestions that are submitted, at the programs height 305 suggestions were submitted. Now it has dropped to 50 a year showing that employees no longer feel like they are contributing successfully to the plant success. This is a major issue because feedback is an essential part of motivating a person and making them feel valued in the company.
Of the $49.4 billion, $42.7 billion was managed by the Pension and Institutional Trust Services with 300 full-time employees and $6.7 billion was managed by Personal Trust Services with 240 full-time employees. The trust industry is highly competitive with demanding clients that push firms to be very efficient in order to survive in the business and avoid clients to shift to another firms. Trust companies started to use new switched to information technologies and implement softwares to run their operations. Another key reason for this initiative was the fact that Providian’s Trust officers where often compensated for late and inaccurate statements costing the company up to $5 millions every year. Also there was lack of control in the trust division for many years in way that officers had control of the client’s account.
(Muchmore, 2012) “Lowering PC software piracy by 10 points over four years would create 600,000 additional new jobs worldwide.” (PC SOFTWARE PIRACY POSES CHALLENGES TO CYBER SECURITY, 2009) KIDDER’S NINE STEPS – Individual vs. Community Step 1 – Recognize that there is a moral issue. Although the piracy rates in the current years have slowly decreased, nearly 42% of all software is pirated throughout the world causing fewer IT jobs. Because of those reasons, software piracy is a moral issue. Step 2 - Determine the actor (whose moral issue is it?). The moral issue is the individuals because the person’s actions are not ethical.
Knee jerk reactions to current events have ultimately slowed progress of growth that has been made since the founding of our country. Religious rights have been stepped on, the labor force has weakened and the economy has taken a swift down turn and made very slow progress recovering. The current administration has passed many acts that not only hindered growth of the economy but also had a detrimental impact on the rights of citizens both native and legal immigrant. With the government bailouts, total take over of the countries health system and failed immigration policies, America has taken many hits on the integrity of the foundation the founding fathers laid out for us. References: Epstein, R. A.
With all the adjustable rate programs, it started the downfall of the mortgage industry even though we did not feel the effect until three to four years later. The mortgage companies and lenders implemented several programs which back fired on the industry, which has caused a negative effect on our economy. Many real estate professionals sat back helplessly knowing this was going to happen, it was nothing we could do to stop this avalanche affect from exploding causing a ripple effect on the economy. The downfall of the real estate industry has triggered a negative cause and effect on the economy. Real estate plays such an enormous role in the survival of our economy which is why it is important it does well in order for our economy to prosper.
A growing international competition has also impacted union importance amongst the industries. Product oriented markets were deeply impacted by the competition brought on by international counterparts. Inadequate wage adjustments and demands have accelerated the decline. Almost 66% Americans feel that unions do not benefit the economy, but in turn, hurt the economy, especially during an economic crisis. As of August 2008, labor union approval was at 38% and it fell to 25% in August 2009.