Individual Work 2 (20 points)
Today, we have more millionaires and billionaires than ever before. How do these people get so rich? Did they do it ethically, or did they do it at the cost of the jobs of everyday workers, whom they supposedly lead?
Review the scenario presented in Essay Question #4 on pages 31-32 of Introduction to Business Law. In a report, address the questions presented. Also consider the following:
Can you blame Kilts for accepting the offer given to him, or the action which he took to turn the company around?
What percentage of the responsibility does P&G share for what happened?
Although, nothing illegal took place in the Gillette turnaround or sale, was it ethical?
Assignment should be one to two pages in
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When officers of a company are given a high financial incentive to turn a company around, or to increase profits, they will do anything they can to achieve these goals, even if they are unethical actions. Even though everything that took place between Kilts and P&G was completely legal, it was not entirely ethical. For starters, Kilts had to have known exactly what he was planning to do because he had not moved his family to be with him. He knew that it was just going to be a short term arrangement. There is also a very good chance that he knew that thousands of workers would lose their jobs if he was to go through with the plan. This is exactly what has happened and although he is benefiting nicely from it, he has most likely hurt many communities that house these 6,000 now unemployed workers. Kilts and the other two officers are receiving nice pay offs while these families are going to be struggling to survive for who knows how long. Although the shareholders benefited from this transaction, the officers also took away profits from them because they would have been able to benefit even more if the company hadn’t paid out the officers so much. There are many companies that cannot see beyond their own greed to realize how badly their decisions effect people. A company that has been based in a place for such a long time is then badly hurt by laying off such a large number of