Frank and Acme

Corporation
Resolving Ethical Business Challenges

BSBM3-MM2
Pascua, Jerson
Quindoza, Marjorie
Ricalde, Maria Gabrielle
Concepcion, Ashley

EXECUTIVE SUMMARY
Frank had to convince Otis for to buy equipment
from Thermocare. Salesman managed to do it
twice by offering relatively cheap compliments. For
the first time, he proposed to go to a Cubs game,
and, for the second time, he invited him and his
wife in Cancun. The third method was the
organization of a party in Las Vegas, which in my
opinion, was too much. Despite the fact that the
company was able to further persuade their
business partners, such actions are not ethical. In
particular, visiting adult entertainment clubs
with their business partners. If this information
gets out, it will strongly strike on the companys
image.

The problem started when Frank

bribed Otis to secure a $500,000
contract and not telling about
the defective products at the
same time.

TIME
CONTEXT

Viewpoint
Bachelor

of Science in Business
The case will be viewed by the Marketing Management
Management has offered subject such as
students
Business Law, Credit and Social
Responsibility and Good Governance and
other subjects relevant to this case that
can surely help the students to
understand this case.

STATEMENT OF THE PROBLEM

Cheating

and Honesty

Frank Garcia cheats and

at the same time he lied
in this situation. This
issue comprises bluffing
in business.
Bribery

Conflicts

of Interest

This occurs when Frank

Garcia offers an incentive
that might bias his judgment
against the best interests of
the customers.
Leadership

He should be aware Frank needs to

understand
about
the importance of his
professional
actions
relationship.
Despite
the and not to go to deal
with his
effectiveness, it is
conscience.

OBJECTIVES
To

be able to know what are the ethical issues

happened between Acme Corp. and Thermocare.

To

be able to know if Acme Corporation is liable

of violating ethical code

To

be able to know what are the ethical

dilemmas happened between Acme Corp. and
Thermocare.

(SWOT Analysis)

AREAS OF
CONSIDERATION

STRENGHTS

WEAKNESSES

OPPORTUNITIES

THREATS

Acme
Corporation

Having a
$1,750,000
worth of
contract
between
Thermocare

Acmes
product
having
problems(def
ective
products)

More funds
for
expanding
their
operations

Losing their
reputation
and
revenues.

Frank

Getting a
raise and
promotion.
Using his
and Acmes
resources for
his own
greed.

Getting blind
by the
promotion
and bonuses

More chance
of closing a
contract
between
Acme and
Thermocare

Getting fired
and sued by
Thermocare

Thermocare

Otis

Getting sued
by
distributing
defective
products
Closing a
contract for
supplying

Without his
knowledge
of getting

Getting fired
for getting
defective

1. Company has to build up a system for code

2.Fire Frank and Amber for abusing and

of conduct focusing on an ethical

using the companys resources to bribe

working

Otis. And also for distributing defected

environment

where

every

employee is trained carefully about

products

ethical

contract.

behaviors,

transparency

and

business vision. Especially, well-trained

must be apply for management team first

3.

for

fulfillment

Reviewing

of

of

their

ethical

awareness and understanding

of all, like Amber. Managers after having

a clear vision they will help company
develop in a right direction.

of employees about ethical

codes of the company.

ALTERNATIVE COURSES OF
ACTION

RECOMMEDATION
The acme corporation needs to change their strategy in keeping their clients, because of the media finds out about the paying for
clients to go to places like adult entertainment club; they are going to think that acme corporation is bribing their clients to stay with
them. They need to take an action for this. This study would also recommend for Company to build up a system for code of conduct
focusing on an ethical working environment where every employee is trained carefully about ethical behaviors, transparency and
business vision.

CONCLUSION
Most

companies have a code of ethics in which employees are

committed to have a good ethical behavior. In this case gift
exchanges are not permitted in some companies this may
vary exchange so there will be a conflict of interest. Frank
does that think for the sake of their company but if this well
be known the company will go down because of that issue.
Frank shouldn't take care of the client with adult
entertainment so the acme corporation will not be involved in
ethical issues.
In this particular case allowing acme customer to go to a strip
club getting or under companies expense or misused of Acme
corporations fund therefore it shouldnt be tolerated and those
people who is involve should sanction and expelled .

DETAILED PLAN OF ACTIONS

Strategic
goal

Strategy

Objective

Responsibility

1.Prevent
Ethical
Dilemma

Implement
ing strong
and ethical
code for
company

To prevent
more
ethical
dilemmas
in the near
future

Top
Manageme
nt

2.
Organizing
orientation
s for
employees
about code
of ethics

Timeline