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Homework No 2

Homework No 2

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06/22/2013

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HOMEWORK No 2
28
th
October 2009Group 7:1.Phung Thi Than061240452.Trinh Thi Dung061240093.Tran Dinh Lanh061240284.Nguyen Nguyen Phi061241135.Tran Anh Vu06124126.Le Thi Thuy Tram061240517.Nguyen Bao Tri(New member)06124135
1.
 Bribing corrupt foreign officials in order to win foreign orders, on the grounds that where bribery is away of life, you have no alternative if you want to wina contract.(by Phi)
We do not agree with the comments above, because we think to win a contractthere must be a real capacity. If you do not have this, the capacity to win by bribing theimplementation of the contract will be very difficult. Moreover, we think bribery is aridiculous ethical standard. Bribery makes the competition unfair. Evils of briberymake people moral decadence and decrease social equity.Because we briber a person who is capable not really recognized and those donot have the capacity to achieve the purpose without the value for money. As a result, people only interested in the interests of individuals, regardless of the commoninterests of society, regardless of quality. Nowadays almost all countries in the world are laborring evil interception issubornned for its possession has been affecting economy.
 
2. Industrial espionage spying on competitors’ R&D departments withconcealed camera and microphones, bribing their employees, etcrather thandoing your own expensive research and development. (by Hong)
This is illegal and breaked principles of society. Industrial espionage spying oncompetitor s to become great threats to intellectual property assets of all enterprises.Bribering employee of the company is unethical competition. Industrial espionagespying on a competitor to obtain trade secrets
 
is dishonest. The information soughtoften refers to the development of new products, innovative manufacturing techniques,commissioned market surveys, forthcoming advertising campaigns, research plans, etc.These things can help your company enter the market segment better than youcompettiors. In contrast, we think they will affect your reputation if the societyinvestigates your behaviors.
3.
 Selling supposely durable goods with “built-in obsolescence”, i.e. which you know will not last more than a few years.(by Vu)
Before selling this kind of goods, we think that the producer has to know thatthe consumer is at least the can buy a replacement from them. In these cases, there isan information asymmetry between the producer, who knows how long the product tolast, and the consumer, who does not. When a market becomes more competitive, product lifespans tend to increase. Lets inmage what would happen when the consumer will be harmed because of your products. Therefore, although we do not break law weshould consider to consumer.
4. Spening money on lobbying, i.e. trying to persuade politicants to pass laws favourable to your particular industry.(by Dung)
In my pinion, spending money on lobbying is illegal, it do not follow the principles of society. Because this form is not official, it only brings benefits to a fewindividuals but adverse impact to the interests of society. You try to persuade politicansto pass laws favourable to your particular industrial. In contrast, this brings to public.Image of your company in public view is very bad. Nobody wants it happen, so weshould not do it.
5. Telling only a half the truth in advertisements, or exaggerating a great deal, or keeping quiet about the bad aspects of a product.
 
Advertising must be truthful and nondeceptive, and advertisers must haveevidence to back up their claims. It is said that every maketer is a lier. Nevertheless, wewant to clarify that an ad is a way the company announce about their product but not anexaggeration. This is illegal. Equally important, the consumer might buy your products because of your exaggerating information but they will not buy your products again.As a result, your company image will be affected or even bankrupt when there aresome people have to go to hospital because of your products.
6. Undertaking “profit smoothing”, i.e. using all the techniques of “creativeacounting” to hide big variations in profit figures from year to year, and threatening to replace the auditors if they object.(by Lanh)
We want to explain clearly about profit smoothing. When the end of the year comes, accountants will be busy to make reports about your company’s finacialsituation. You want to present a good image to shareholders so that you, a director,would expect your accoutants use profit smoothing to achive your purpose.Using profit smoothing means move current income to the future. For example,suppose the company is a video game company, and they get massive revenue when agame released, but relatively low sales the rest of the time. The company will spreadthe money from the massive revenue out over the year, so that their revenue shows asteady increase from year to year. Using profit smoothing is legal but it isabused.Therefore, you must use it in limit.
7. “Whistle blowing”, i.e. revealing confidential information to the police or to a newspaper, e.g. that a company is breaking health and safety regulations and therefore putting people’s lives in danger, or illegally selling arms to foreigndictators.(by Than) 
Whistle blowing occurs when a worker raises a concern about danger or illegality that affects the public.
 
This is legal and protected by law. Consequently, it isalso important for workers to understand that there will be no adverse repercussions for raising cases with their employer. We think that these actions will help to reduce therisk that serious concerns are mishandled, whether by the employee or by theorganisation. Everybody should do this because of not only responsibility but also

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