Homework No 2 | Bribery | Whistleblower


28th October 2009 Group 7: 1. Phung Thi Than 2. Trinh Thi Dung 3. Tran Dinh Lanh 4. Nguyen Nguyen Phi 5. Tran Anh Vu 6. Le Thi Thuy Tram 7. Nguyen Bao Tri(New member) 06124045 06124009 06124028 06124113 06124126 06124051 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 win a contract.(by Phi) We do not agree with the comments above, because we think to win a contract there must be a real capacity. If you do not have this, the capacity to win by bribing the implementation of the contract will be very difficult. Moreover, we think bribery is a ridiculous ethical standard. Bribery makes the competition unfair. Evils of bribery make people moral decadence and decrease social equity. Because we briber a person who is capable not really recognized and those do not 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 common interests of society, regardless of quality. Nowadays almost all countries in the world are laborring evil interception is subornned for its possession has been affecting economy.

2. Industrial espionage spying on competitors’ R&D departments with concealed camera and microphones, bribing their employees, etc… rather than doing your own expensive research and development. (by Hong) This is illegal and breaked principles of society. Industrial espionage spying on competitor s to become great threats to intellectual property assets of all enterprises. Bribering employee of the company is unethical competition. Industrial espionage spying on a competitor to obtain trade secrets is dishonest. The information sought often 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 your compettiors. In contrast, we think they will affect your reputation if the society investigates 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 that the consumer is at least the can buy a replacement from them. In these cases, there is an information asymmetry between the producer, who knows how long the product to last, 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 we should 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 few individuals but adverse impact to the interests of society. You try to persuade politicans to 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 we should 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 have evidence to back up their claims. It is said that every maketer is a lier. Nevertheless, we want to clarify that an ad is a way the company announce about their product but not an exaggeration. 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 are some people have to go to hospital because of your products.

6. Undertaking “profit smoothing”, i.e. using all the techniques of “creative acounting” 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 finacial situation. 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 a game released, but relatively low sales the rest of the time. The company will spread the money from the massive revenue out over the year, so that their revenue shows a steady increase from year to year. Using profit smoothing is legal but it is abused.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 foreign dictators.(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 is also 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 the risk that serious concerns are mishandled, whether by the employee or by the organisation. Everybody should do this because of not only responsibility but also

morality. In addtition, workers should ensure that concerns raised are taken seriously and investigate properly and make an objective assessment of the concern.

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