Ethical Leadership and Management


Ethical leadership can be described as good morals or characters displayed by leaders. When leaders have right values or possess a strong character by being an example of others and also withstanding temptations that occur along the way.

Was it ethical for Normandale to sell the alleged knock-off products at a lower price?

According to the ethics in business, price discrimination where different customers have different price when buying the same goods as others or same products or service is not allowed. According to ethics status, price discrimination is very ambiguous: while people are intuitively considering it unfair, economists also argue that many cases practices are likely leading to the higher welfare than uniform pricing alternative and in some of the cases each and every party to the transaction (Benson, 1982). In real ethical issue, cases in the discrimination of price is the practice that often favors a special needs situation and ignorance of some customers, this makes the customers practices being unethical in such cases not discrimination in price as such.

What other ethical violations, if any, did Normandale commit?

Another ethical violation was selling of counterfeit products by Normandale. Counterfeit products and sales is a very serious problem in international trade market. It is beyond the issues that concern intellectual property theft and safety for consumers. There is notion that terrorist organizations are funded by counterfeit sales and products. When the economic controls are analyzed, the two effects of proxies of annual counterfeit sales in international terrorism account measures, the counterfeiting effects differ significantly in between the two indexes of terrorism. The widely known counterfeit products in the society are luxury goods (Benson, 1982). They are widely recognized due to prevalence of fake designers e.g. the hand bags and wallets in US major cities. The counterfeit products or sales are produced with no regard to the safety of production and methods or composition.

If Normandale is not penalized for its actions, what effect might it have on similar businesses?

If Normadale was not penalized with counterfeiting of products from Mathis, the effects in the business would be on the other companies and the consumers. When counterfeit reach the market and consumers get access to the sales and services or products, for instance, when counterfeit products reach consumers who use or consume them and production was poor it affects (Velasquez, 1982). An example is counterfeiting of drugs whereby the companies do not consider the rules and that makes it dangerous for consumers to use them. Also when the services and products are counterfeit, they are sold in a throw away price making the companies with the genuinely produced goods to lack market for their products. Thus, these May lead to collapse of other companies and loose of jobs.


What damages, if any, has Mathis suffered because of Normandale’s conduct?

Due to the illegal conduct of Normandale, Mathis suffered loss after their products were counterfeited with Normandale then sold in cheaper or lower prices. The company never won customers who bought counterfeited products in low prices. They also lost potential customers who after using the products which were counterfeited and had no quality avoided the companies’ goods due to low quality products.

What are the differing views on the social responsibility of corporations like Normandale?

According to Milton Friedman, defending of free enterprise when declaiming business is not being concerned with profits but also promotes social ends. The business has social conscience and it takes responsibility in providing employment through elimination of discrimination and avoiding pollution. Most of the businessmen are responsible meaning that the individual proprietors or the corporate executives. The act of social responsibility is directed mostly at corporations. In free-enterprise and private-property are corporate executive employee of owners of businesses. They have direct responsibility to their employers while conforming of basic rules to the society. The rules should be implemented in the company for it to run smoothly (Freidman, 1970).

The social responsibility of a corporate executive is acting in accordance with the company rules. Executive corporate should refrain from engaging themselves in acts that may harm others and communities in large for example price increase of products with the aim of contribution of social objective of inflation prevention.

What ethical code could Normandale implement to prevent similar incidents in the future?

Due to the counterfeited goods increase in the world market, UPS thus prohibits its employees and the representatives from purchasing counterfeit goods knowingly with the use of their funds or even transporting the goods with UPS equipment or provision of the counterfeit goods to current prospective UPS employees or customers. According to human rights, UPS code recognizes and plays a big role in the acknowledging of basic human rights with high standards in accordance for treatment of the people (Velasquez, 1982). The code only intends in clarifying each and every employee’s obligation that exists for proper conduct. It reserves the rights and amends, terminate or alter the code or policies for any reason at any time.

The use of UPS business conduct code will be appropriate to avoid such cases in future. The code has long-standing commitment in conducting business to comply with all applicable regulations and laws in accordance to the highest ethical principles. The code is one tool that compliance program and business conduct provides employees in assisting them meet ethical legal and legal obligation and Mathis Company should apply it to ensure no more obligations from Normandale Company (Garreth, 1986).

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