BADM 2133 UNIT 8

350 views

Published on

Published in: Education, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
350
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

BADM 2133 UNIT 8

  1. 1. Business Ethics: Cases andSelected Readings, 7th Ed.Marianne M. JenningsUnit 8© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  2. 2. Employee Covenants Not toCompete• State law (California and North Dakota)• Necessary (something to protect)– e.g. sales techniques; preservation of customer relationships; customer lists (California)• Reasonable in time and geographic scope• Balance between their right to earn a living andyour need to protect proprietary information andgoodwill• Things that help: advance knowledge ofcovenant; nature of market; their conduct310© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  3. 3. Alternative Theories• Tortious interference with contracts• Confidentiality/nondisclosureagreements311© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  4. 4. Employee Non-SolicitationClauses• Promise not to recruit other employees fromthe firm if they leave• Different from non-compete• More easily enforced312© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  5. 5. Trade Secrets andConfidential Information• Secret or confidential information must beprotected for it to remain secret and beentitled to protection under the law• Role of covenants in protection of tradesecrets• Boeing and the documents313© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  6. 6. The Employee Conversation• Griffin:– We just took a Procurement Integrity Law class. Ican’t believe you did that.• Erskine:– I was hired to win … and I was going to dowhatever it took to do it.314© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  7. 7. Starwood vs. Hilton• List the information the employees took toHilton• List the employees who transferred to Hilton315© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  8. 8. The Starwood Covenant________acknowledges that during the course of his/her employment with[Starwood], Employee will receive, and will have access to, ‘ConfidentialInformation’ ... of [Starwood] and that such information is a special, valuable andunique asset belonging to [Starwood]... All [Documents (broadly defined)] whichfrom time to time may be in Employee’s possession ... relating, directly orindirectly, to the business of [Starwood] shall be and remain the property of[Starwood] and shall be delivered by Employee to [Starwood] immediately uponrequest, and in any event promptly upon termination of Employees employment,and Employee shall not make or keep any copies or extracts of the Documents ...Employee shall not disclose to any third person any information concerning thebusiness of [Starwood], including, without limitation, any trade secrets, customerlists and details of contracts with or requirements of customers, the identity ofany owner of a managed hotel, information relating to any current, past orprospective management agreement or joint venture, information pertaining tobusiness methods, sales plans, design plans and strategies, managementorganization, computer systems and software, operating policies or manuals ...financial records or other financial, commercial, business or technical informationrelating to the company ....”316© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  9. 9. 317Seeking Fame“We’d be interviewed in every magazine. We’dbe in like . . . We’d be, who were the people ofthe ’80s? Boesky? Michael Milken. We’d bebigger than that. It’s fun. If you don’t getgreedy.”Marisa Baridis, former ethics officer at Morgan Stanley to acollege friend as she gave him inside information on pendingMorgan deals© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  10. 10. Little Jonathan Lebed• “Pump and dump”• He’s done nothing different from what all theanalysts do.• The fall-out?© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.318
  11. 11. Private Equity Buy-Outs• Would you enjoy the benefits of a private-equity buy-out if you could?• What is the impact of the buy-out on thecompany, the employees, and thestakeholders?319© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  12. 12. Stakeholders in Private-equityBuy-outs• Investors in the private firm• Employees of the company• Suppliers for the company• Shareholders for the company• Communities where plants are located• Customers for products of company• Creditors of the company• Target and its shareholders320© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  13. 13. 321Statutory Protections• Trademarks for logos• Registration and self-enforcement• The Gray Market• The Knock-off Market© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  14. 14. Stakeholders in Knock-offs• Owner of trademark• Landlords• Customers/Owners of real trademarked goods• Shareholders, creditors, suppliers oftrademark owner• Innovation322© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  15. 15. • Protect authors of books, magazine articles,plays, movies, songs, dances, photographs• Runs for lifetime of author plus fifty years• 100 years from creation or 75 years frompublication, which ever is shorter, if companyholds rightsCopyrights© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.323
  16. 16. • Works automatically copyrighted but no suitscan be filed until the copyright office is given acopy• Damages include profits, costs, attorney’s feesCopyrights© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.324
  17. 17. Copyrights• Federal Statutes:– Sonny Bono Copyright Extension Act– Digital Millennium Copyright Act– Computer Software Copyright Act of 1980• Fair use is permitted – short quotes; researchcopies, criticism, commentary and parody© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.325
  18. 18. Stakeholders in Google’sSnippets• Authors• Publishers• Book purchasers – these books and futurebooks• Future writers• Bookstores• Shareholders and creditors for publishers• Vendors for publishers326© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.
  19. 19. • 20 years from filing/14 years for design patent• Exclusive rights to use and profits• Must be non-obvious, novel, and useful• Using the idea without consent constitutesinfringementPatents and the WindshieldWiper© 2012 Cengage Learning. All Rights Reserved. May not bescanned, copied or duplicated, or posted to a publicly accessiblewebsite, in whole or in part.327

×