Bien, John Carlo

BSBA II-5
Module 13

PRE-ASSESSMENT: Give a short and direct meaning of the following business

terms and an example for each item.
1. Multilevel Marketing (MLM) -Multilevel Marketing (MLM) is a technique used by
some direct distribution firms to persuade established distributors to hire new
distributors who are paying a percentage of their sales. Recruits are the
"downline." seller. Avon is a cosmetics brand with around 6 million
representatives and annual revenue of $5.7 billion.

2. Pyramiding - pyramid scheme is an illegal investment practice in which

individuals recruit others to invest their money which is then paid to the earlier
investors. As each new investor is recruited, the earlier investors make more
money because all new recruits are recruited under them. Example LUX

3. Whistleblowing - Whistleblowing is the act of drawing public attention, or the

attention of an authority figure, to perceived wrongdoing, misconduct, unethical
activity within public, private or third-sector organisations. Whistleblower
Examples Include Employees Who Report Corruption, Discrimination,
Harassment, and Fraud.

4. Money Laundering- Money laundering is an illicit mechanism in which vast

sums of money produced from a criminal operation, such as drug dealing or
terrorist finance, seem to have originated from a legitimate source. The money
from the illegal activity is deemed filthy, and the process "launders" it in order to
make it look clean. Example is Drug Trafficking. 
 5. Bribery- the offering, promising, giving, accepting or soliciting of an advantage
as an inducement for an action which is illegal, unethical or a breach of trust.
Inducements can take the form of money, gifts, loans, fees, rewards or other
advantages (taxes, services, donations, favours etc.).

Reinforcement: Read and understand the following story; answer the three
questions given.

Shared IT Secrets

When employee Eric Pantaleon quit his job in 2005, IT Systems, his company,
paid little attention. Pantaleon was one of the several customer-service representatives
of the Laguna, Philippine- based Computer Company, and the turnover of
responsibilities in the department wasn’t smooth. Following an uneventful exit interview
with human resources officials, Pantaleon left the company to start a job with IT rival,
Sampo Computer, also based in Laguna.

It might have ended there. But when Pantaleon’s new employer began taking
away IT’s market share, its top management started to be alarmed. After some
checking, IT learned that Pantaleon was using inside knowledge of IT’s customer lists to
make sales. Company officials also suspected he might be relying on IT’s customer
specifications and repair manuals.

1) Is keeping “trade secrets” still an ethical issue in the age of

globalization and advanced communications technology?
Yes. It is still an ethical issue, even in the age of globalization and advanced
communications technologies. Trade secret or intellectual property is proprietary
knowledge that helps a company to have a strategic advantage on its rivals. In
conclusion, people may use this trade secret for their own personal gain, which
may lead to unfair rivalry or industry. Even, those who use this intellectual
property will have an effect on their faith and commitment to their organization or
corporation.
2) Is Pantaleon’s action unethical, e.g., using the customer list of his
previous company for his new company? Why or why not?
It is, in my view, immoral indeed. Trade confidentiality is classified because, as I
said before, it helps corporations or other firms to have a comparative edge
which might be unjust.
3) If you were Pantaleon, would you also do the same thing as he
did? Why or why not?
If I were Pantaleon, I'm not going to do the same thing that he did because I don't
want to excel in life in an immoral or unfair manner. Every human being has a
conscience that means that we all know what is right or wrong. I know that
exploiting other people only to take advantage of yourself is a really wrong
mindset. We must be aware enough to know which, what or who to honor, so
that we too can be valued. Confidential knowledge from someone else you met is
one of the many things you can value. Why? Why? Simply because it's not yours,
and you're not the only one who's spending time and trying to come up with the
detail. And though I'm sure I'll benefit at first, I know this benefit won't last long
and there are repercussions that I'll face later. So, I'd rather start at the
beginning, do everything my utmost without using other people to be good in life
than to be at the top right away, just to have an immoral and unethical conduct.