$5.00 General Electric
In one paragraph, supported with evidence from your text and from other research, answer 1 (one) of the following questions. Be sure to include the text of the question itself with your answer: (ONLY NEED ONE OF THESE QUESTIONS ANSWERED, YOUR DECISION, DOCUMENT ATTACHED)
a. Where would you estimate the equilibrium price was during the price-fixing schemes (at 10 percent below the list or "book" price? 30 percent? 60 percent?). Identify the conditions within GE and within the industry which encouraged the price-fixing schemes.
b. Evaluate the price-fixing scheme from an ethical point of view (your evaluation should describe the effects of the scheme on society's welfare, on the moral rights of society's members, and on the distribution of benefits and burdens within society). In your judgment, did Clarence Burke act wrongly? Why? Was he morally responsible for his actions? Why?
c. Why was GE's written policy on antitrust ineffective? In his book White Collar Crime, Edwin Sutherland hypothesized that "criminal behavior [in business] is learned in association with those who define such behavior favorably and in isolation from those who define it unfavorably. . . . As a part of the process of learning practical business, a young man with idealism and houghtfulness for others is inducted into white collar crime" (pp. 234 and 240). To what extent was this hypothesis verified in the case of GE? What implications, if any, does this have for moral responsibility within GE? Within any business?
d. Apart from their legality, did the price-setting scheme set up in 1963 differ in any morally relevant ways from the earlier price-fixing schemes?
e. What internal policies might have changed GE's moral climate? What public policies might have changed the industry's practices?
Case Study 5.docx (19K)