If a firm has a divisional structure and places extreme
pressures on its divisional executives to meet short-term
profitability goals (e.g., quarterly income), could
this raise some ethical considerations? Why? Why
not?
If a firm enters into a strategic alliance but does not
exercise appropriate behavioral control of its employees
(in terms of culture, rewards and incentives, and
boundaries—as discussed in Chapter 9) that are
involved in the alliance, what ethical issues could
arise? What could be the potential long-term and
short-term downside for the firm?
