Company E, a pizza delivery business, is a being boycotted by customers and losing sponsored tie-ins with professional sports due to racist comments by its founder and CEO.Which of the above companies is distinguished by an ethical strategy as opposed to an unethical or flawed strategy?Ĭompanies in an industry or industry segment are vulnerable to competitive pressure from the actions of companies in a closely adjoining industry, at least whenever buyers view the products of the two industries or segments as close substitutes.
Company D, a manufacturer and marketer of high-end consumer electronics, has a strict Code of Conduct that requires its suppliers to comply with several standards regarding safe working conditions, fair treatment of workers, and environmentally safe manufacturing.Company C, a pharmaceutical manufacturer, charges higher prices for life-saving drugs in some countries than it charges in others.
Consider the following five companies and their situations.