E T H I C A L I S S U E S I N M A NA G E M E N T – M B A ( C O R E ) – Y E A R 1 –

2019-20

Case Name: Clean Hands in a Dirty Business Group no.:

7

Student Name (s) and Roll No.-

1) Siddharth Srivastava I056
2) Sameer Dhuri I017
3) Punit Sethia I046
4) Pulkit Agrawal I007
5) Adwait Nadkarni I037
6) Jivesh Kaul I027

Case Facts:
1. Janet Moore is struggling for a job in field of marketing
2. Karen, a friend of Janet, works in marketing department of Union Tobacco
Inc. and is looking for a job
3. Janet had conducted case study in her college regarding business practices
of Union Tobacco
4. Union Tobacco is a US company that manufactures snuff, a tobacco based
product that is sucked
5. Union Tobacco introduced mint and cherry based snuff and marketed
them to youngsters.
6. Within 2 decades, the market for snuff increased to 7 million out of which 1
to 2 million are between the ages of 12 and 17 with an estimated average
age of first use was 9.5 years old.
7. Snuff users were 4 times more likely to develop mouth cancers and 50
times more likely to develop cancers of gum and inner cheek lining.
8. Parents of teenagers, who had developed cancer, had filed legal suits
against Union Tobacco.
9. Karen admitted that she was aware about all the wrong doings but still
encouraged Janet to join her anyway.

Case Decision DATE:

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 E T H I C A L I S S U E S I N M A NA G E M E N T – M B A ( C O R E ) – Y E A R 1 –
2019-20

Your Key Decisions:

Union Tobacco:
1) Union Tobacco decided to redesign its tobacco-based product (snuff) and
aggressively market it to youngster

Karen:
1) Karen wanted to switch from her current job
2) Karen offered job to Janet even after understanding that it will create an
ethical conflict for her.
3) Karen scuttled some awful marketing plans of Union Tobacco

Janet:
1) Considered employment in the company even after knowing that the
company markets nicotine based products to kids and teenagers.

Rationale for your decision:

Union Tobacco:
1) Snuff was a hard sell for Union Tobacco that attracted only old people. To
expand its market Union tobacco redesigned it to develop a low-nicotine
flavored snuff.

Karen:
1) The marketing plans that she was involved with made her doubt her
idealism and made her feel ashamed of discussing her job with others.
2) Janet was in need of a job and considering Janet’s idealism Karen believed
that if she joined her they both could internally try to control Union
Tobacco’s harmful marketing practices.
3) Karen realized that some of the marketing ideas of Union Tobacco are
harmful for the society and hence decided to obstruct its execution.
Janet:

Case Decision DATE:

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 E T H I C A L I S S U E S I N M A NA G E M E N T – M B A ( C O R E ) – Y E A R 1 –
2019-20

1) Janet realized that Karen had a strong argument, and she was being too
squeamish and self-centered. She thought she could do others some good
and help herself at the same time.

Do you foresee any risk factors including any negative/unintended

consequences of your decision?

Union Tobacco:
1) They might get convicted in the suits filed against them which will result
into loss of brand image
2) Government might impose sanctions on the company if it is found that
there products are being used by kids.
3) Negative publicity might lead to decrease in sales of snuff and hence lead
to loss of revenue for company

Karen:
1) If Janet joined and is not able to bring positive changes in Union Tobacco’s
marketing than it might create a stress in Karen’s relationship with Janet

Janet:
1) Janet might stay unemployed for a longer period
2) Janet is joining the company with the intention to make a difference, but
by getting involved with a project having social negative impact she might
have to execute projects that might be against her morals.

What are your plans for taking care of negative/unintended consequences?

Union Tobacco:

Case Decision DATE:

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 E T H I C A L I S S U E S I N M A NA G E M E N T – M B A ( C O R E ) – Y E A R 1 –
2019-20

1) Union Tobacco should direct its marketing and sales teams to target only
people that are above legal age.
2) Union Tobacco should issue warnings regarding the carcinogenic nature of
their products on its packaging.

Karen:
1) Karen should provide adequate information to Janet regarding the nature
of projects that she might have to deal with
2) Karen should mentor Janet once she joins the organization.

Janet:
1) She could keep looking for another job as well and if she feels that she is
not happy with the work at Union Tobacco, then she can switch.

Case Decision DATE:

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