Refer to Case 11: Frauds of the Century
You work at a successful multilevel direct selling company. Recently, critics have accused your firm of being a pyramid scheme. While you award recruiting independent distributors with commissions on the sales of their recruits, an actual product of value is being sold. Some are calling for your company to eliminate its multilevel marketing compensation scheme. You must come up with an answer defending your compensation model and explaining why it is not a pyramid scheme.
Be sure to address:
1. What defines a pyramid scheme?
2. How pyramid schemes can last for so long when similar types of fraud often collapse at an early stage
3. How fraud can be identified
4. How organizations can be protected from threats of fraud
Refer to Case 5: New Belgium Brewing: Ethical and Environmental Responsibility
You are asked to provide advice for an organic cigarette firm. The firm wants to market the sustainability of its products, including the fact that all the tobacco has been grown with sustainable farming methods. This does not make the cigarettes any safer. Is this situation the same as that faced by New Belgium Brewing? How would you advise the firm and help it to maintain its responsibilities to consumers regarding the dangers of smoking?
Be sure to address:
1. The environmental issues faced
2. The organization’s social responsibility
3. How sustainability affects or contributes to the organizational ethics
