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Subject:
Corporate Social Responsibility and Good Governance
MBA 302

CORPORATE SOCIAL RESPONSIBILITY

CASE ANALYSIS

Submitted by:

Chema C. Paciones

Submitted to:
Dr. Ericson Z. Matias
Professor
 CSR CASE ANALYSIS

Case Sudy Title: Incredible Shrinking Potato Chip Package

1. Discuss the relevant of the facts (What are the issues)

 The issue surrounding this case is that Julie, Brand Manager for potato chips at a
regional salty snacks manufacturer, is dealing with certain unfortunate circumstances to
uphold profits of various items in her potato chips line. It is due to sudden hike in the
potato prices which accounted for almost all of the content of her chips. It has now
become inevitable for her to raise the chip prices for about 15 percent. She being
evaluated solely on the basis of monthly net profits cannot afford to incur losses and
also cannot increase the prices which can affect sales and loyalty of the customers.

She somehow came up with a practice known as “downsizing” and “package

shorting” which means reducing the net weight of the package. This is relatively small
changes which go unnoticed by consumers. However, it is a deceptive practice and
against the ethics. It is also in violation of code of conduct. The CMA Code of Ethics and
Standards of Practice (the “Code”) is designed to establish and maintain standards for
the conduct of marketing in Canada.

According to this code (B. Purpose of CMA Code of Ethics and Standards of
Practice),”Marketers acknowledge that the establishment and maintenance of high
standards of practice are a fundamental responsibility to the public, essential to winning
and holding consumer confidence, and the foundation of a successful and independent
marketing industry in Canada. Members of the Canadian Marketing Association
recognize an obligation – to the consumers and businesses they serve, to the integrity of
the discipline in which they operate and to each other – to practise to the highest
standards of honesty, truth, accuracy, fairness and professionalism.”

So, It is the ethical and social responsibility of the manufacturers and marketers to not
to deceive the innocent customers who have build a sense of trust in them. They are
ethically obliged to practice the highest standard of truth and honesty with their
customers. It also amounts to fraud against them. Consumers who are in the habit of
buying a particular product size generally don’t scrutinize the net weight label on
subsequent purchases.
 Also, she is aware of the fact that there are no laws by the Food and Drug
Administration against this practice but she should not forget the ethical and social
implications associated with it.

2. What actions should Julie take to solve the problem?

 Julie is dealing with certain unfortunate circumstances due to sudden hike in the
potato prices which accounted for almost all of the content of her chips. It has now
become inevitable for her to raise the chip prices for about 15 percent. She cannot
afford to incur losses and also cannot increase the prices which can affect sales and
loyalty of the customers. She came up with a practice known as “downsizing” and
“package shorting” which means reducing the net weight of the package. She should
never try this fraud practice and instead should resort on some other alternatives
which are ethically and socially correct.

She should try to explain her situation to the company and make them understand if
they can incur very minimal loses just for time being in consideration of the present
circumstances in order to secure the loyalty of their customers. Also she can explain
the same circumstances to their consumers by way of advertisement or otherwise that
the price hike is minimal and only for time being and it is only because they are not
compromising with the quantity and quality of the chips. There are many alternatives
to deal with this situation which are ethically and socially correct and she should never
try to adopt any unethical practice in any case. .

3. Do you think it’s necessary to take the advice of Dave to reduce the net weight of
potato chips? Yes or No, explain.

 No, because “downsizing” and “package shorting” means reducing the net weight of the
package. This is relatively small changes which go unnoticed by consumers. However, it
is a deceptive practice and against the ethics. It is also in violation of code of conduct.
The CMA Code of Ethics and Standards of Practice (the “Code”) is designed to establish
and maintain standards for the conduct of marketing in Canada.

4. Do you think it’s possible to lessen the content of the product at the same time to
change the price? (Defend your answer)

 It is NOT possible, it is a deceptive practice and against the ethics. It is also in violation
of code of conduct. The CMA Code of Ethics and Standards of Practice (the “Code”) is
designed to establish and maintain standards for the conduct of marketing in Canada.
 5. Do you believes that consumers don’t usually examine the net weight label on
subsequent purchases? Yes or No, explain.

Yes, Consumers who are in the habit of buying a particular product size generally
don’t scrutinize the net weight label on subsequent purchases.

Case Sudy Title #2: Justifying Price Increases

1. Discuss the possible issues in the case.

 The challenges facing here is that how he should stand against his principles in handling
the dishonest job environment. Sam is very capable of performing the work, but it will
be a difficult choice from his conscience to make a recommendation whether to accept
the will of the employee and be rewarded or refuse the job. As for this review. It is an
internal question to be solved by searching for the right solution. As it is in this
viewpoint, Sam's principles will be exposed whether factors in employment returns or
stands for what he is ethical and faces the repercussions to be suspended and
terminated.

2. What should Sam do?

 Recognizing his interest explicitly is clear because his intention is to defend it.
What he can do, in particular, protects his risky step is that he benefits not just the
small business market, but also the organization he works, since he was able to link a
closer relationship between the advertising company agency and a small business. To
think about this question if the owner of the business can demonstrate a strong
concern, he will remain protected from this dilemma. Keep on doing what is right.
Individuals like him will examine the credibility of the victims to be held to account. He
must look at the equal treatment and pragmatic values with trust. He should adhere
with what he values and to not be swayed by any proposition that will cause the many
people to suffer only to fulfill the self-accomplishments. With this concern, he might
communicate to television station owners to justify the value of establishing smaller
firms in the marketplace. Instead of continuing at work, we are compelled to work that
breaches our inner dignity by you. So, quit peacefully and seek in job potentially.
Possibilities are still ours, as much as we are willing. Relevant company is indeed
searching for us. Even so, these are all just alternatives I would personally propose to
Sam. How Much I can only tell is that only obey what brings him value more. I
constantly suggest never to seek the prejudice or the dishonest leads. If there is a way
of fixing it, so why not make a patch. Just the same as appealing to the owner of the
business, this issue would have been settled on how efficient Sam will be in compelling
his views on this matter.
 3. Which alternative would you select if you were in Sam's shoes? Why would you pick this
alternative?

 I will not bring the smaller businesses to endure big damages and hardships due
to the extreme immoral action. Additionally, I will then have the chance to speak out and
complain to the company's owner so that he would be fully aware of the potential
implications and be informed. I will choose to venture into what the amount might mean.
Even if I want to lift the cost for the small business, I will always consider its ability to pay
and if I meet the order, they are certainly overwhelming. The circumstances I am
projecting that I will endure to open John's minds, as such, whether I face this
catastrophe I will not keep my ego to be governed by the superiors. For any rational
vision will always be a positive viewpoint, I am assured. Even if it would cost my career
security continuity, I remain assured that I will face this obstacle while hanging on to what
is right. Even so, even if I prefer this option, by appealing my complaint to the owner, I
still have the chance to be protected.

4. Regardless of what Sam does in this situation, how can he prevent this situation from
arising in his future employment, whether at the television station or elsewhere?

 There are somewhat certain circumstances It seems to be lacking the negative effects.
However, he wants to strengthen his engagement with his employer including his elders so
he can have no reluctance or trouble raising issues. But what is the challenge here are the
obstacles to contact between various employees' proposals to be introduced to achieve a
better strategy. It seems if I had a fantastic relationship with my manager, even if there was
a difficulty or a major dilemma to be addressed then I do not only tolerate the challenges
of entering the path choice. Through that, I will have ability to openly communicate him an
idea and not be compelled to perform the mission that really contradicts my integrity.
Having a look at this viewpoint, a seamless communication between me and my manager is
used to resolve the superiority complex. This duty never enhances major consequences for
my obligations.

This is also why, maintaining a transparent communication and transparency with my

employer is working to make sure I 'm putting myself in such a stable position. Truthfully,
as with the situation of Sam, if only he has won John's confidence. The Sam might discuss
clearly as well as communicate with John more of an insight that would help fix the
dilemma. Trust building is crucial so that all over everything Sam goes, his manager and
other employee will certainly hear his input during a massively important decision-making
 period, even if people do not accept him. It will be a struggle for him to clarify the issues
that he hopes to overcome. After all, because Sam upholds fairness and the right of
equality of opportunity, that would not listen to this as it creates a good impact on the
business.

Case Study Title #3: The Nonuser Celebrity Endorser

1. Is it deceptive to use Lance as a celebrity endorser given that, although in the past he
used and preferred the product, he no longer does because he believes it is unhealthy?

 There are some ethical issues with this case, since Lance is not a current user of
bacon. Consumers may feel deceived, or that it is false advertising. There is also the health
concern with bacon, and whether they should promote a product that is hazardous to the
health of some consumers, which implies incomplete disclosure. Promoting this brand may
increase unhealthy habits, rather than shifting brand preferences among current
consumers of bacon. Annie must decide if she is obligated to abide by her boss’s judgment,
and whether Lance’s vegetarianism threatens the reputation of L&L, or BB bacon.

2. Is it ethical to promote a product which potentially poses a health hazard to at least

some consumers?

 If we are simply looking at products that “might be harmful” to people, then it is

beyond
question ethical to market them to people.

3. How can Annie resolve the dilemma caused by the clash between her personal view as to
what is honest, the nature of the campaign, and what the law apparently allows?

 A final course of action is that Annie could suggest an alternative approach to the
project, where Lance does not actually say that he is a consumer of the product.
Since she is writing the commercials, she could change the language so that
Lance can comment on the value, taste, and quality of the bacon he once enjoyed
so much. Since this is true, it avoids the ethical issues concerning whether her
company’s reputation, and that of BB bacon, could be accused of false
advertising as a result of Lance’s eating choices. The disadvantages of this option,
however, are that it does not address the incomplete disclosure issue, since the
commercials will still omit any discussion of health, or Lance’s reasons for
stopping his bacon intake. Annie’s career may also still be at risk, since Victor may
be displeased with her new strategy.
 4. What are the possible alternatives to solve the problem.
Annie’s best course of action is clearly to advocate for an alternative version of the
endorsement commercials. Lance’s vegetarianism seems to be the most important ethical
issue to her, and having him endorse BB bacon based on his past enjoyment of it addresses her
personal misgivings. It also avoids false representation of Lance, since it no longer suggests that
he is a current consumer of bacon. While Annie does risk consequences or refusal from Victor,
the risks to her career are much lower than if she refused to work on the project. She is also
able to work with a clean conscience, since she has found a way to communicate Lance’s
enjoyment of BB bacon in a way that is the most ethical and truthful. This compromise is the
best of her options at this time.

Case Study #4 Life Insurance: Who Benefits, the Consumer or the Company?
1. What actions should Mark take?
2. Which alternative would you choose in Mark’s position, and why?
3. What rights do salespeople have with respect to the integrity of the products that they
present to consumers?
4. What are the possible alternatives to solve the problem?

Case Study #5 The Speedy Sale

1. What is the seller’s duty to inform the buyer of all conditions of the sale?

2. Is it fair for a seller to make promises to a buyer that he can’t keep?

3. Does a salesperson have a responsibility to his superior to make a sale, even if it might mean
compromising his own ethics?
4. To whom is the salesperson’s primary responsibility: the customer, himself, his manager, or
the company?
5. What sales practices are necessary for building trust and long-term relationships with
customers?

Case Study #6 Inside Information

1. What actions should Tom take?

2. Does inside information destroy the fairness of the competitive bidding process?
3. Can Tom avoid using the bid information and still comply with Mark’s orders to be the
low bidder?

Case Study #7 Affirmative Action vs. Client Wishes

 1. To what extent is Jennifer responsible for promoting affirmative action?

2. Does she have an obligation to speak up when she believes marketing is promulgating an
inferior role for African-Americans in society?
3. Should she be concerned with her boss’s immediate agreement to such a request by a
possible client?
4. Does Jennifer benefit more or less by refusing the offer for the new position? By accepting it?
5. Is there a difference, in regard to long-term versus short-term benefits/burdens, if Jennifer
takes the position? If she does not take the position?

Case Study #8 Inside Information

1. Can Tom avoid using the bid information and still comply with Mark’s orders to be the low
bidder?
2. Should Tom be concerned about using the competitors’ bid information, seeing that it
came from a Strong Built employee?
3. Does using the information put Tom and/or his company in jeopardy?
4. If everybody in the construction industry acts this way, should Tom?
5. What actions should Tom take?

Case Study # 9 The Pizza Puzzle

GUIDE QUESTIONS

1. Is the proposed marketing program for “Napoli Pizza” deceptive?

2. Does the proposed marketing program respect guests’ right of free consent?

Case Study # 10 ANOTHER TYPE OF DESCRIMINATION

1. To what extent is Terry responsible for alerting the company about an increasingly
important social issue that many experts are expecting to develop into boycotts of products
and companies in the future, and possibly even result in related lawsuits?
2. Does Terry have an obligation to speak up when she believes marketing is promulgating an
inferior role for those people born with lower physical attractiveness?
3. Which possible alternative provides the greatest benefit to the greatest number of
people/entities?
4. Do the benefits outweigh the financial costs to the company which, if the marketing plan is
not changed, is expected to be successful (as a result, in Terry’s opinion, of a social injustice)?
Case Study # 11 COSMETIC APPLICATIONS
1. Which of the alternatives would provide the greatest benefit to the greatest number?

 The best solution is to inform the customers that applying of facial cream can be done
for only one application of it.

2. How would costs be measured in this vignette (loss of consumer trust, risk to Maria’s
advancement)?

3. Do the benefits of being consistent with focus group data outweigh the “cost” of lower
sales volumes?
4. Which alternative(s) would not respect your rights if you were Maria? A TruBlush
customer? Stockholders of TruBlush?

Case Study #12 WASHING DIRTY LAUNDRY

1. What obligations do advertisers have in mass media marketing?
2. Are the rights of women being infringed? If so, should the campaign be stopped?
3. How would a decision to stop the campaign affect the brand's market share and
competitive position and, therefore, the company?
4. What actions should Bruce take?
 Never mind the complain of the people and continue the message of the
advertisements.
 Change the commercial without offending and demeaning women.
 Try to get the suggestions of the customers particularly the women about the
commercial.

5. Which alternative would you choose in his position? Why would you make that choice?

 Change the commercial where everyone will not be offended about the message.

Case Study # 13 GOLDEN TAURUS GARMENT COMPANY

1. Does the company’s current financial condition justify the compensations given to
the employees? Explain
2. Is it ethical to deny the employees the information about the company’s financial
conditions and decisions?
 3. Is it moral to let the employees sign a five month contract instead of a six month
contract?

Case Sudy #14XYZ CEMENT COMPANY

1. Was the decision of the court fair? Why or why not?

2. If you were the owner of the cement plant, what will you do to solve the problem?

Case Study # 15 OH SALESMEN

1. What actions should Mary take?

2. Which alternative would you choose if you were in her position?
3. Why would you make that choice?
4. How can this situation be prevented from occurring again?