Case Study 1
Answering this question requires evaluating all of the positives and negatives of both the company, Next Step and Ramona. The case study begins with Ramona being recruited and accepting an invitation to attend a meet and greet in Seattle. My first observation and question is, “why did she wait until after she accepted the invitation of Next Step to do research on the company?” She willingly accepted an all-expenses paid weekend without first knowing what she was getting herself into. This is a huge mistake on her part. This is not a matter of ethics or morality, but one of prudence. Had she done the research, it is likely she never would have accepted the invitation and consequently never signed a contract.
Let us first take a look at the company. The positives of Next Step Herbal Health include its “feature in Forbes magazine as being one of the fastest growing companies in the U.S.”, “their great financial results” and “industry-leading ethics code.” One would have to assume that the writers of Forbes did their due diligence and researched the company to determine why it was among the fastest growing companies and failed to disclose this in their report, or they didn’t.
As Ramona is conducting this research, she came across several negative articles. The article that mentions the CEO of Next Step having a pattern of starting and building new businesses only to sell them at a profit is not illegal, immoral or unethical. This is the epitome of a free market, capitalist society. We can look at the pioneers of industry as evidence. Carnegie, Rockefeller, Ford and Vanderbilt started companies, provided jobs, lifted thousands out of poverty, started philanthropies and have contributed to the global economy. The CEO of Next Step harnesses this ideal and talks about the “mission” of his company to include a “healthier America”, thus contributing to society. The company will provide jobs and perhaps make Americans healthier in the process....