It is difficult to teach a course in Economics or Finance wi

It is difficult to teach a course in Economics or Finance without mentioning Business Ethics. In the Economically Speaking section following Chapter 3 on pages 62-63 of your text, the author comments on whether \"Unfettered Free Markets and Capitalism\" is a force of good or evil. He suggests that unfettered capitalism by itself is not \"dark\", but it is governments, businesses and citizens who choose to participate on the dark side and thus, allow it to flourish.

In a Market economy, increasing the per share (stock) value of the firm is the goal of management, however, it should be done in an ethical manner. The end does not always justify the means, particularly when sound business ethics and / or risk management principles are ignored corporate leadership. A prime example in this century is Enron Corporation, who \"cooked the books\" to deceive financial and business communities into thinking the company\'s financial health was on more solid ground than it actually was. Recently, a hit television show, \"American Greed\", documents that the darker side of financial success is not limited to large corporations and illustrates how small businesses and individuals bow to temptation.

For this assignment, cite an example of unethical behavior by a corporation or business in the past 100 years.  Include the timing and consequences of those actions - for example, Who was harmed; What were the estimated financials involved; How was the situation resolved; and / or What was the final outcome - did the company actually fail, was taken over, etc.

A good place to start is to Google topics like \"Unethical Business Cases\"; \"Corporate Scandals\"; \"Examples of Bad Business Ethics\". While there are plenty of recent scandals to choose from, some of the best cases took place in the early 1900\'s. One or two paragraphs of solid business writing is sufficient, but feel free to write more if you like. Please try not to duplicate cases already written about.

Solution

Unethical behavior by a Corporation

Company Name: Samsung Galaxy

Product : Samsung Galaxy Note 7

Period : Jan, 2017

By the end of Year 2016, Samsung launched Galaxy Note 7 which received quite a good response from the customers in the form of large number of prebooking orders. But alas to the customer\'s and company\'s dismay the product didnt meet the customer\'s expectation and faced a major disaster in the form of battery explosions. Customers were harmed badly as inpite of spending huge money they were embarassed as Note 7 owners were prohibited to carry it in the flight because of frequent explosion cases.

Company decided to recall all Note 7 from the market and it cost the company approximately $5.3 million. It was a major loss for the comapny as well in terms of monetary loss and a setback to its brand value in the market.Company somehow managed a 100% recall.

Situation was resolved by product recall and finally company met the customer\' s expectations. Because of 100% product recall, which was a huge loss for the company but at the same time, they were able to regain customer\'s confidence in them and maintain their brand image in the market. Company is still running successfully.