Reference no: EM131292412
CONFLICT OF INTEREST
Big Company is a large manufacturer of healthcare products that is under fire from the government to lower costs. Big Company has an excellent reputation and is widely acknowledged as one of the best-managed companies in the country. Despite the firm's reputation, however, Wall Street has reacted negatively to government efforts to reform the healthcare industry as a whole, and Big Company's stock price has lost 30 percent of its value in the last year.
To counter the effect of possible government intervention, Big Company has just purchased Little Company, a discount healthcare supplier. Wall Street has greeted the acquisition with enthusiasm, and Big Company's stock price has rebounded by more than 10 percent since news of the acquisition was made public. While this acquisition could give Big Company a foothold in a growing part of the healthcare industry, a real problem lies in the mission of Little Company. Little has made its reputation by providing objective healthcare advice to its customers.
Now that it's owned by Big Company, Little Company's customers have expressed doubts about how objective it can be in recommending healthcare products if it's owned by a healthcare giant. Will Little Company be pressured to recommend the products offered by Big Company, its parent? Or will Little Company's advice remain objective?
As the senior executive charged with bringing Little Company into the corporate fold, how do you proceed?
What are your obligations to Big Company, Little Company, and the customers of both? What do you owe to shareholders and the financial community?
Are there other stakeholders, and what do you owe to them? What provisions would you include in an ethics code for Little Company?
|
Relationships with stakeholders-employees or customers
: a. People: Recommend how this company could improve on its relationships with stakeholders, such as employees or customers. b. Planet: Recommend ways this company could improve in terms of its environmental policies.
|
|
What are the functions of water in the body
: Research information about one of the following: osteoporosis, anemia or iodine deficiency disorders. For your selection, indicate symptoms, required minerals and food sources, people or areas affected, and how the disease is managed or treated.Wh..
|
|
Predicted effect on future union membership growth
: Your explanation should clearly indicate why or how you think the information in your story will have the predicted effect on future union membership growth.
|
|
Which accounting for business combination
: For both IFRS and U.S. GAAP, you have three choices of method: fair value method, equity method and full consolidation. Which accounting for business combination (IFRS or U.S. GAAP) you prefer; and why?
|
|
What do you owe to shareholders and the financial community
: What are your obligations to Big Company, Little Company, and the customers of both? What do you owe to shareholders and the financial community?
|
|
Participate in an employer-sponsored plan
: John (age 57 and single) has earned income of $4,200. He has $32,900 of unearned (capital gain) income. If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution John can make in 2015 if he has earned i..
|
|
Discuss the different dimensions of technology
: Also indicate with examples how two other external constraints or influences could affect the work rules at a grocery store.
|
|
Identify an aspect of the engineering profession
: Engineering 1 ME4001: identify an aspect of the Engineering profession that intrigues/impresses/worries them. They will locate a problem that is specific to that aspect of the profession and prepare a report on how the profession has sought to res..
|
|
Discuss extent that public records should override privilege
: The attorney-client privilege is an important part of the client-lawyer relationship. Discuss the extent that the public records or open meeting laws should override the privilege.
|