Dr. Susie Wang is president of a subsidiary of the world’s largest concrete machine manufacturer (RE

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Dr. Susie Wang is president of a subsidiary of the world’s largest concrete machine manufacturer (REESE, Inc.). Her job is to organize and operatea newly formed global business consulting company (Concrete Network Services, i.e., CNS) comprising of 13 separate divisions related to the concrete industry.REESE Inc. CEO, Curtis Davis, has assigned CNS the task of capturing the hidden opportunities and potential global sales for REESE. Although CNS is legally asubsidiary of REESE, it has been clear from the beginning that CNS is to appear to the public as a separate, nonattached entity with a different name andlocation. Presidents of the other five REESE companies: Chris Warner, of the Mixing Truck Company, Ray Kronk, of the Pipe and Tool Company, EricDowns, of the Aggregate Company, Harry Potkins, of the Molding Company, and Sam Jones, of the Paving Company support the CEO’s desire to have CNS not appearin any way linked or connected legally with REESE. These company presidents along with the CEO of REESE make up REESE’s Executive Team.

REESE Inc. has invited 20 Chinese dignitaries and the owner of the largest construction company in Beijing to tour the REESE plants in the UnitedStates where the machines are constructed. These dignitaries arrive at REESE for their tour and evening social event for which they appear most excited. TheExecutive Team of REESE, CEO, and Dr. Wang are present at the event along with the Dean of the University of Michigan architectural school. The Deanhands out gifts, which include University of Michigan shirts and various other tokens to the Chinese guests.

The CEO of REESE kicks off the event with introductions by all and an exchange of handshakes and gifts. Next, Monica Ponce,Dean University of Michigan Architectural School, presents her plan to partner with REESE and the government of China for a satellite University ofMichigan architectural unit to be established in Beijing.

The Chinese are elated and suggest this will cement the deal between the Chinese and REESE Inc., knowing that there will be an architecturalsatellite with a recognized architectural school (University of Michigan) now operating in Beijing. REESE executives verbally appear enthusiastic encouragingthe participation. The University of Michigan representatives return to Ann Arbor confident that REESE will drive this new partnership.

Several months later Dr. Wang receives a phone call from Monica Ponce accusing her, “You used us!” as Dr. Wang knew full well that REESE backedout of the deal immediately following the signing of the 2,000 machine order.Your Role

You and your firm, Price Waterhouse, Inc., have been retained by the United States Secretary of Commerce’s office to evaluate the manufacturingapplicants for the Malcolm Baldrige awards for this year. In particular, your role is to evaluate the specific BALDRIGE: Ethics—A Strategic Imperative whichincludes a focus on the company's approaches to the following:

– maintaining an ethical workplace
– modeling and sustaining ethical behavior
– upholding their social responsibility
– ensuring ethical and fiscal accountability

REESE Inc., Executive Team

Chris Warner

Ray Kronk

Eric Downs

Harry Potkins

Sam JonesPresidentPresidentPresidentPresidentPresidentMixing Truck CompanyPipe and Tool Company

Aggregate Company The Molding CompanyThe Paving Company


Curtis Davis, REESE Inc., CEO – He is a middle agedclimb the ladder executive who is anxious to move REESE into China for both monetary and recognition reasons.

Curtis Davis tells Susie Wang, “ASAP – We need recognition of REESE as the global leader of concretemachinery in China. Twenty dignitaries from China will be here in two weeks; the list will include the largestconstruction owner in Beijing (Mr. Jimmy Lee) and Secretary to the Communist Party in Beijing (Lepeng Wang) to tour REESE andsign the agreement for the 2,000 machines. My executive team needs to keep in mind that REESE machinery products, dependentupon the specific features, can sell anywhere from $1,000,000 to $10,000,000 dollars each. So I am sure you recognize thepotential value to REESE!”

Dr. Susie Wang, President of CNS – She is educated and tolerant, but notparticularly decisive as she is new to the Concrete Industry.

Dr. Wang advises the REESE executive team, “CNS has been networking lately with the University of Michiganarchitectural school and this relationship could be our entry into China if we support them in their Beijingsatellite campus efforts.”

Monica Ponce, Dean University of Michigan Architectural School

As a new dean, she is anxious to set a precedent at the Architectural School and develop partnerships with theconcrete industry. Dr. Wang phones her new friend, Monica Ponce, who is the Dean of the Alfred Taubman College of Architectureand Urban Planning, inviting her and her team of deans and professors to attend a business social event sponsored by REESE forthe 20 dignitaries coming from China.

Hulya Cakan, Turkish educated Architect for CNS

Dr. Wang and the CNS architect Hulya Cakan have spent the last six months developing a solid relationshipwith the University of Michigan architectural staff. Hulya has been successful in getting the university to develop aneducational program for architects with the emphasis on concrete construction.

Jimmy Lee

Now that he has the backing of the Communist Party in China, Jimmy Lee is anxious to pursue thisventure of purchasing 2,000 Concrete Machines, which should make money for both himself and the party.

Lepeng Wang, Secretary to the Communist Party inBeijing

Party loyalist.

Y O UD E C I D EActivity

For Week 2, you will respond to the six short answer questions (as seen below) pertaining to the REESE, Inc. case facts as describedabove. The purpose of this project is to give you a realistic situation involving international ethics and let you apply your ethics knowledge as taken fromChapter 4 (Pages 126 to 157) in your textbook.

The assignment is due by the end of Week 2, and you will submit it to your Dropbox for grading. The case highlights the importance of ethicsin business involving a U.S. multinational company, U.S. research university, and both the government of China and a Chinese business. It gives you an opportunityto analyze your personal knowledge of ethics and apply it to the questions below:

You are being graded on your reasoning, critical thinking, and analytical abilities to respond to the questions below.

Questions:Q1:Do you think REESE Inc., adhered to a set of Business Ethics? If so, what were they? If not, what would yourecommend as a set of business ethics for them?

Q2:Discuss the ethical issues involved in this case. Discuss how you might develop a plan for addressing theethical issues involved in this case.

Q3:How do you think the president of CNS should have addressed this directive from the CEO ofREESE, Inc.?

Q4:Was this an Ethical Dilemma? And, if so, why?

Q5:What does this case tell you about organizational culture and leadership?

Q6:Of the Philosophical Approaches to Ethics described in Chapter 4, which approach do you think most conveys thePhilosophical Approach to Ethics used by REESE, Inc.?

Note to the student:

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