REESE Inc did not adhere to a set of business ethics given the manner in which they handled their business relationship on the global arena when they mischievously tried to obtain sales without the right protocol being put in place (Matten and Crane, 2007) REESE Inc backed out of the deal after signing for 2000 machines which is very unfair to the Chinese therefore would recommend that REESE Inc practice fair business dealings. REESE Inc did not open up to the Chinese that it had a subsidiary (Concrete Network Services, CNS) which is a global consulting firm thus the company failed to make full disclosures when entering into deals.
The misuse of corporate ethics policies such as marketing instruments and this is evidenced by formation of a new company, CNS whose main agenda is to attract global sales Matten and Crane, 2007). The manner in which the presidents of the subsidiary companies of REESE Inc come up with strategies of operating, the CNS as a public entity though it is not the case, amounts to a total disregard corporate ethics that are expected for any operation between companies when they seal deals of partnership (Matten and Crane, 2007) Application of wrong business strategy such as bait and switch strategy which is shown by the fact that the REESE Inc backed out of the deal after making sales which seems to have been their main objective.
The president of CNS which is a subsidiary of the giant concrete manufacturer REESE Inc, Dr. Susie Wang should have not accepted the decision from Curtis Davis who is the chief executive officer of REESE Inc to operate the company as a separate entity since the end results would malign her image and this is very detrimental in her profession (Matten and Crane, 2007) Dr. Susie Wang should have an independent mind and be in position to professional judgments.
The behavior posed by Dr. Susie Wang who heads the consultation firm (CNS) which is a subsidiary of REESE Inc amounts to an ethical dilemma. The president, Dr. Susie Wang had the knowledge that their dealings were against the business ethics but at the same she did not want to jeopardize her job (Matten and Crane, 2007) Dr. Wang should not have gone against the ethics expected of her profession which leaves her dignity and integrity in a questionable mode.
Culture means the of doing things and the one adopted by REESE Inc is a power culture in that whatever decision it makes it has to be followed. The fact that the company opted for keeping it to them self’s that CNS was a public entity though it was formed with the aim of capturing hidden opportunities is a culture that does not promote the good ethics in a competitive environment (Matten and Crane, 2007).This leads to bureaucratic style of leadership.
REESE Inc which has ideologies of satisfying its own goals without having to reveal the full ideas to their partners seems to have a pragmatic philosophical approach to ethics (Matten and Crane, 2007).This kind of philosophical approach considers an ideology to be true if it works satisfactorily and this was evident for the case of REESE Inc since it achieved its goals and mission which never benefited their Chinese counterparts or the department of University of Michigan.
Andrew Crane, Dirk Matten (2007). 2ndedition. Business ethics: managing corporate citizenship and sustainability in the age of globalization. Oxford University Press