Question

In: Operations Management

NAME Resolving Ethical Business Challenges Charlie just graduated from Michigan University and landed a job as...

NAME Resolving Ethical Business Challenges Charlie just graduated from Michigan University and landed a job as a copywriter at Fletcher, Alexander, and Burgess (FAB) Advertising assigned to one of the subsidiary accounts of Delicious Uber Bacon Ingredients Extraordinaire Corporation. This conglomerate was primarily a food processing manufacturer beginning one hundred years ago with pork in the Midwest. Overall corporate sales of beef, chicken, pork, and seafood were more than $ million each year. FAB considered many advertising options and opted for a celebrity spokesperson. That meant Charlie would work with Alice Aimee Lucie Jeanne Bompard as the celebrity endorser. Ms. Bompard is a well-known, well-liked, and vibrant actress with a large younger following. Kelly, President of FAB, asked Charlie to step into her office. “Charlie, this new account is a good start for you. We usually don’t let our new copywriters handle accounts by themselves, but you have proven to be a capable employee. Your job on this account is to write copy for the commercials using Ms. Bompard’s product testimonials. The copy needs to be crafted as a testimonial, targeting the market of seventeen to thirty-year-olds. Ms. Bompard already signed an affidavit as to being a bona fide user of the product. The scripts should feature her testifying to the quality, value, and tastiness of the bacon. I want you to meet her tomorrow so you can start the writing process and understand her personality in order to script the messages. Spend the rest of the day immersing yourself in her biography and researching her on the Internet.” As Charlie left Kelly’s office he remembered a Facebook post about Ms. Bompard being a vegetarian. The next day at their meeting, Charlie asked her if she had actually tasted the bacon. Ms. Bompard replied, “Why yes, technically and legally I have tried Uber. In fact, I’ve been a huge fan since I was a kid. Bacon is my favorite food. I’ve done several testimonials in the past and know the American Advertising Federation (AAF) rules. I know as long as my comments are based on verifiable personal use, the message cannot be challenged as deceptive. In fact, Uber bacon has been a favorite of mine since I was young. It wasn’t until a month ago I became a vegetarian. Eating all that bacon for decades really did a number on my cholesterol.” “So, you feel comfortable about endorsing Uber even though you don’t eat it now?” asked Charlie. “No question about it. As far as bacon goes, Uber is second to none in taste. If people are going to eat bacon, why not eat the best? Even if it is a heart attack waiting to happen,” Ms. Bompard joked. The next day Kelly asked Charlie how it went. He explained their conversation and expressed concern over the fact Ms. Bompard is currently a vegetarian, and she attributed her high cholesterol to Uber bacon. Charlie felt relief when he saw the concern in Kelly’s
face, but soon realized her concern was about Ms. Bompard pulling out of the advertisement. Charlie reassured Kelly Ms. Bompard still wanted to promote the product, but it seemed like a contradiction to have a vegetarian promoting bacon. Kelly responded by saying as long as Ms. Bompard had eaten the bacon at some point in her life and thinks it is a good product, it makes no difference as to whether she currently eats the bacon. She continued, "Sometimes in advertising, you have to add a spin to the message you are communicating so it fits with the product you are selling. Not only are you selling a product, but more importantly, you are selling an experience, a feeling, an idea that appeals to consumers." As Charlie walked home that evening, he wondered how he was going to write this advertisement. He did not want to begin his career in a dishonest manner, but he also wanted to produce work that pleased his boss. He tried to think of creative ways to mask the contradiction of the advertisement. Maybe with humor? He asked himself if this approach would still feel dishonest. The next morning Charlie was going to meet with both Ms. Bompard and Kelly about what he had written thus far.


1. What ethical dilemma(s) is Charlie facing? (1-2 paragraphs)
2. What should Charlie do? Evaluate and defend your position by applying at least one concept from our chapter 10 studies on ethics and corporate social responsibility (1-2 paragraphs).

Ethical Concepts from Chapter:

-Stages of Moral Development

-Social Entrepreneurship

-Corporate Social Performance

-Diversity Strengths

-Traditionalists

-Baby boomers

-Generation X

-Generation Y

-Decision Biases

Solutions

Expert Solution

1. Charlie has just graduated and has landed a job as copyrighter at FAB. He has been assigned the account of Delicious Uber Bacon. The company has put trust in him and has given him an account to handle independently. The company has chosen celebrity endorsement for the Uber Bacon Account. They have roped in Alice Aimee Bompard, a young actress with a major following as the celebrity endorser for the account.

Bacon is essentially a non-vegetarian product. When Charlie was going through the profile of Alice Bompard, he came to know that she has turned a vegetarian. A vegetarian celebrity endorsing a non-veg product will be projected as cheating to the consumers. Consumers relate to the celebrity endorsements as they want to be connected with the lives of their famous celebrities and want to be associated with all products and services used by them. If Alice was a non-vegetarian and she was endorsing Bacon product, the marketing strategy could have been a hit. However a vegetarian Alice promoting a non-veg Bacon product seems like a lie. The consumers may feel that when Alice herself does not eat it, why is she promoting the product. The whole endorsement will lack its connect in such a case.

When Charlie shared this with Kelly, president of FAB, she was hesitant for a moment but then she said that there is certain creative margin in marketing where a spin can be added to the message to enhance its overall appeal. Charlie was in ethical dilemma about what he should do. Should he stick with Kelly’s proposition and cheat customers. Or he should go by is instinct against the proposition of the company, which has given him his first independent account.

2. Charlie needs to approach this ethical dilemma using the Kohlberg’s theory of moral development. It is well known in marketing that if the customers do not connect with or do not believe the product, then they may not make purchase design to buy the product. If Charlie accepted Kelly’s proposition and made vegetarian Alice sell the non-vegetarian Uber Bacon, one or the other day, the bluff will get caught by the consumers and the trust and relationship which the brand shares with them, will get adversely impacted. Charlie can use Kohlberg’s theory of moral development to align Kelly with his proposition.

· Level 1: Preconventional : In this stage the morality is externally defined and controlled. The new users of Uber Bacon may get fascinated by Alice Bompard selling the product and may make purchase decisions based on it.

· Level 2: Conventional: In this stage, the sense of morality gets linked to personal beliefs as well as societal norms. The consumers will become more aware and will want to find the benefits associated with the product Uber Bacon. If in this stage, they come to know that Alice is vegetarian and she herself does not consume the product, they will feel that their trust has been broken and they may cancel their association with the brand.

· Level 3: Postconventional: In this stage, consumers may start thinking above the norms and societal beliefs. They may want to challenge the credibility of the brand. If in this stage, the product is not able to connect with the audiences, the whole fundamental of celebrity endorsement would fail.

Hence the company needs to consider Charlie’s proposition as it will be beneficial for the product as well as the company in the long run.


Related Solutions

Assume that you recently graduated with a major in finance and just landed a job in...
Assume that you recently graduated with a major in finance and just landed a job in the trust department of a large regional bank. Your first assignment is to invest $100,000 from an estate for which the bank is trustee. Because the estate is expected to be distributed to the heirs in approximately one year, you have been instructed to plan for a one-year holding period. Furthermore, your boss has restricted you to the following investment alternatives, shown with their...
Assume that you recently graduated and you just landed a job as a financial planner with...
Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest $100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes. State of Economy Probability T-Bills Alta Inds. Repo Men American Foam Market...
Assume that you recently graduated and you just landed a job as a financial planner with...
Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest $100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes.    State of Economy Probability T-Bills Alta Inds. Repo Men American Foam...
Assume that you recently graduated and you just landed a job as a financial planner with...
Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest $100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes.           State of Economy Probability T-Bills Alta Inds. Repo Men American Foam Market...
Assume that you recently graduated and you just landed a job as a financial planner with...
Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest $100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes. State of Economy Probability T-Bills Alta Inds. Repo Men American Foam Market...
Assume that you recently graduated and you just landed a job as a financial planner with...
Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest $100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes. State of Economy Probability T-Bills Alta Inds. Repo Men American Foam Market...
Brian just graduated from engineering school and landed a sweet job earning $71000 per year. He...
Brian just graduated from engineering school and landed a sweet job earning $71000 per year. He expects his salary to increase by 5.0% per year. At the end of each year he will invest 10% of his salary into an investment account that earns 7.0.% per year compounded annually. He hopes to retire in 45 years. a. If all goes according to his plan, how much money will be in his retirement account when he retires? b. After working for...
Brian just graduated from engineering school and landed a sweet job earning $59000 per year. He...
Brian just graduated from engineering school and landed a sweet job earning $59000 per year. He expects his salary to increase by 6.0% per year. At the end of each year he will invest 10% of his salary into an investment account that earns 6.9.% per year compounded annually. He hopes to retire in 45 years. If all goes according to his plan, how much money will be in his retirement account when he retires? $   After working for almost...
Brian just graduated from engineering school and landed a sweet job earning $63000 per year. He...
Brian just graduated from engineering school and landed a sweet job earning $63000 per year. He expects his salary to increase by 4.1% per year. At the end of each year he will invest 10% of his salary into an investment account that earns 6.7.% per year compounded annually. He hopes to retire in 45 years. If all goes according to his plan, how much money will be in his retirement account when he retires? $   After working for almost...
Brian just graduated from engineering school and landed a sweet job earning $55000 per year. He...
Brian just graduated from engineering school and landed a sweet job earning $55000 per year. He expects his salary to increase by 4.4% per year. At the end of each year he will invest 10% of his salary into an investment account that earns 7.9.% per year compounded annually. He hopes to retire in 45 years. If all goes according to his plan, how much money will be in his retirement account when he retires? $    After working for almost...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT