Negative Business Case Studies

1. Negative Business Case Studies To investigate and describe a variety of examples of businesses that have shown unethical behaviour. To analyse and evaluate the actions and responsibilities of the businesses in question.

2. Investigate For 4 Case Studies • Give a brief summary of the event/company • Outline the negative impacts – who and what was affected and how (include statistics/dates/detail) • Give your view on the case study with justification.

3. Think, Pair, Share – In your notes A: define whistle blowing in business B: define globalisation A: give an example of when whistle blowing may be necessary in a business B: explain how globalisation could lead to exploitation of workers

4. Negative Case Studies Task: Fill in your Negative case study chart. Start on the table you are sitting at – you will have 10 min then will move onto the next ‘market stall’

5. Goldman Sachs – Banking Crisis Goldman Sachs 2010 Goldman Sachs' chief executive has denied his bank contributed to the US financial crisis (recession in many other countries too) by betting some of its own investment products would fail. They knowingly sold shares and mortgages that would be likely to fail meaning business could go under and people went bankrupt. Lloyd Blankfein and other executives at the Wall Street giant were accused by a US Senate panel of acting immorally while Americans lost jobs and homes. Because many UK and European banks had money in these bad debts or shares this was a factor in recessions and the financial crisis globally. The firm claimed that it was not their role to be moral in business, rather to make a profit. They could act in an amoral manner and not consider the rights or wrongs of what they did. They said it was not their job to ensure what they sold was ethical or of good quality. http://news.bbc.co.uk/1/hi/business/8645945.stm http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/04/goldman_consequences_of_the_se.html

6. Case Study 3 Bhopal Disaster • On the night of December 2nd, 1984, a Union Carbide plant in Bhopal, India, began leaking 27 tons of the deadly gas methyl isocyanate. • None of the six safety systems designed to contain such a leak were operational, allowing the gas to spread throughout the city of Bhopal. • Half a million people were exposed to the gas and over 25,000 have died to date as a result of their exposure. Over 150,000 survivors struggle with chronic illness as a result. • The water and soil around the factory was poisoned along with the deaths of wildlife and domestic animals. http://news.bbc.co.uk/onthisday/hi/dates/stories/december/3/newsid_2698000/2698709.stm

7. BP Horizon Deepwater • 20 April: Oil rig explodes, killing 11 people • 22 April: Rig sinks to the sea bottom • 30 April: Oil begins washing ashore • Some estimates say 40,000 barrels of oil a day are leaking • Sea life and wildlife and costal areas are affected on a huge scale. • 4 June: BP cap the well, limiting the flow of oil • 15 July: Oil leak stemmed after second cap fitted • 19 September: BP confirms well has been permanently sealed • BP and Government regulation criticised for poor safety and precautions to avoid this sort of disaster. http://www.bbc.co.uk/news/special_reports/oil_disaster

8. Chose an extra case study • Nestle • Sweat Shops – choose a company

9. In pairs: Task: Record your own responses to these questions in you notes. A: Which company did you find most immoral and why? B: Do you think large companies should behave in a moral way or should profit come first? B: Which company did you think caused the most damage and why? A: Is the environment or humans the most important consideration when analysing these cases – why?