Problem
A. When shareholders increase their wealth through downsizing, does this come, to some degree, at the expense of loyal employees-those who have worked diligently to serve the firm in terms of accomplishing its vision and mission? If so, what actions would students take to be fair to both shareholders and employees if they were charged with downsizing or "smartsizing" a firm's employment ranks? What ethical base would they employ to make decisions regarding downsizing?
B. Are takeovers ethical? If not, why not?
C. As firms attempt to internationalize, they may be tempted to locate their facilities where product liability laws are lax in testing new products. What are some examples in which this motivation is the driving force behind international expansion?
D. Ventures in foreign countries without strong contract laws are riskier, because managers may be subjected to bribery attempts once their firms' assets have been invested in the country. How can managers deal with these problems?
E. Firms with a reputation for ethical behavior in strategic alliances are likely to have more opportunities to form cooperative strategies than will companies that have not earned this reputation. What actions can firms take to earn a reputation for behaving ethically as a strategic alliance partner?