A study on antecedents of brand loyalty in the toilet soap market
literature review
1. PROJECT DISSERTATION
ON
“EFFECT OF UNETHICAL BEHAVIOR ON BRAND IMAGE”
FOR
THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF
“MASTER OF BUSINESS ADMINSTRATION”
FROM GGS IP UNIVERSITY
DELHI
BATCH: 2014-2016
SUBMITTED BY: SUBMITTED TO:
BINEET DEVRANI DR. PARUL GUPTA
ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY,
GREATER NOIDA (UP) – 201306
2. Supervisor Certificate
This is to certify that Bineet devrani, a student of Master of Business Administration, Batch–
MBA-11, Army Institute Management & Technology, Greater Noida, has successfully
completed his project dissertation under my supervision.
During this period, he worked on the project titled “Effect of unethical behavior on brand
image” in partial fulfillment for the award of the degree of Master of Business Administration of
GGSIP University, New Delhi.
To the best of my knowledge the project dissertation work done by the candidate has not been
submitted to any university for award of any degree. His performance and conduct has been
good.
(Signature)
DR.PARUL GUPTA
Date:
AIMT Greater Noida
3. Certificate of Originality
I, Bineet devrani, Roll No. of MBA 11 batch of Army Institute of Management &
Technology, Greater Noida has undergone the project dissertation work on a Project Title
“Effect of unethical behavior on brand image”, declare that this project is my original piece of
work.
Signature of the student:
BINEET DEVRANI
Date:
4. Acknowledgement
I want to show my sincere gratitude to all those who made this study possible. First of all I am
thankful to the helpful staff and the faculty of Army Institute of Management and Technology.
Second I would like to extend my sincere thanks to my Industry Guide for his/her untiring
cooperation. One of the most important tasks in every good study is its critical evaluation and
feedback which was performed by my faculty guide Dr. Parul Gupta. I am very thankful to my
Faculty as well as Industry guide for investing his precious time to discuss and criticize this
study in depth, and explained the meaning of different concepts and how to think when it comes
to problem discussions and theoretical discussions. My sincere thanks go to my Institute and
family, who supported and encouraged me.
BINEET DEVRANI
Course – MBA
5. Executive Summary
Unethical behavior in business runs the gamut, from simple victimless crimes to huge travesties
that can hurt large numbers of people. Whether it is stealing a pen, padding an expense report,
lying to avoid a penalty or emitting toxic fumes into the air, unethical behavior cannot be
condoned by a company. A strict ethics policy is the cornerstone for any business that wants to
maintain a good reputation.
Unethical comes from the word “ethical” whichmeans conforming to accepted standards of
socialor professional behaviour• unethical in the other hands, are the oppositemeaning of ethical
which means not conformingto approved standards of social or professionalbehaviour; that is the
"unethical businesspractices”• It is a wrong contrary to conscience or morality orlaw; For
examples "it is wrong for the rich to takeadvantage of the poor"; "cheating is wrong"; and "itis
wrong to lie”
6. TABLE OF CONTENTS
Supervisor Certificate I
Certificate of Originality II
Acknowledgement III
Executive Summary IV
S.No. PARTICULARS PAGE NO.
1. Introduction
2. Research Objectives
3. Literature Review
4. Research methodology
5. Data collection
6. Data analysis
7. Conclusions
8. Reference
8. Introduction University researchers and business managers have introduced ethical values as
missing link of today's economy and they have considered it as an important strategy to create
the lost trust Service businesses may have a positive effect on customer perceptions respecting
ethical traits. Hence, organizational ethical behavior leads to make and maintain stable
relationships between organizations and their customers. During the past few years, the
increasing trend on unethical behaviors among businesses has created concerns and tension for
managers because the unethical behaviors in one hand may destroy the company’s brand
personality and, on other hand, it may decrease the reputation of the brand, accordingly. It leads
not to purchase again and sanctions and punishment to business by customers. Thus, business
ethics perceived by customers influence on trust, satisfaction and loyalty and, consequently,
effect on brand equity (Kotler, 2000). Vendor as the first interface has a significant impact on
customer perception of the reliability of the service provider and the service and ultimately
customer benefit in maintaining its relationship with the vendor organization (Haghighi et al.,
2011; Louis & Lombart, 2010). Brand equity is an asset that keeps companies’ values and leads
to customer loyalty. Aaker (1996) introduced concept of brand equity as “assets (or debt)
associated to a brand that the brand-linked to the name or symbol of it which will increase the
value of goods/services or reduce it”. He described the dimensions of brand equity as loyalty,
brand awareness, perceived quality, brand bonds and other assets associated with the brand.
Wood (2000) believes that an attempt to define the relationships between customers and brands
may lead to creation of the concept of “brand equity”. Others described brand equity as
consumer prioritization of a brand in comparison to others in one product category. According to
Gill and Dawra (2010) brand equity is the value of a brand added to the product. Dimensions of
brand equity Awareness and brand associations According to Aaker (1997) brand awareness has
close relationship with brand associations. Gill and Dawra (2010) believe brand association
make a sense of values and beliefs about brands. Atilgan et al. (2005) express brand associations
has an impact on consumer loyalty and creates value for consumers and companies. Aaker
(1991) defines brand awareness as consumers’ ability to recall or remember and identify specific
brand in a product category like remembering a brand name like coca cola. Perceived quality
Perceived quality can be defined as perception of customers of better goods quality or service to
other brands, which does not include technical dimension and it is one of brand equity
components. Though, high perceived value push consumers to select a product or service from
9. other competitors. Aaker (1991) defines perceived quality as perception of customers of higher
or overall quality of goods or service that is according to his or her goal. He describes in his
model that perceived quality effects on brand equity through: (1) a reason to buy the brand (2)
distinction / positioning (3) premium price (4) the interest of distribution channel members to use
the product with higher perceived quality (5) brand development. Brand loyalty According to
Aaker's brand equity model (1991) brand loyalty was defined as business leverage to reduce
marketing expenses, attract new customers by creating awareness and reassurance and the time
to respond to competitive threats mentioned. Gill and Dawra (2010) suggest that loyalty directly
could increase the brand equity and other variables, both directly and through the loyalty variable
effect on brand equity. Yoo et al. (2000) performed a study on cultural differentiation between
two countries, United States and Korea for 12 different brands and showed that loyalty to the
brand had positive impact on brand equity but the effect was not the same in these two markets.
By review of literature related to the field of loyalty, there are many definitions for the term
provided. However, two main approaches can be identified, including behavioral loyalty and
attitudinal loyalty. Unethical behavior Ferrell and Gresham (1985) state that ethical or unethical
behaviors emerge because of individual factors, thinking others are important in the organization
and getting the opportunity for doing unethical. Social Responsibility Corporate social
responsibility can be defined as a strategic way of managing the market to empower growth and
sustainable development of economics, environment and social. According to Steinman and
Wolfram (2012) unethical behavior does not impact on consumer attitudes toward the brand. The
findings of Ingram et al. (2005) suggest that committed customers forgive unethical behavior of
companies up to a certain degree but when the loss increases a high level of dissatisfaction is
expressed. Barnes (2011) state that corporate social responsibility (CSR) have a positive impact
on consumer behavior. Satisfaction may influence on consumer`s trust and so it influences on
loyalty and trust variables. Hamidi et al. (2012) suggest that the two dimensions of responsibility
and dynamism could have significant impact on brand equity. The findings of Mortazavi et al.
(2010) show that social responsibility towards the social and non-social stakeholders, employees,
customers and the government is strong prediction for organizational commitment changes. The
results of Ebrahimi et al. (2009) indicate that price, family, advertising and distribution influence
indirectly through dimensions of brand equity on brand equity. Brand awareness, brand
associations, perceived quality and brand loyalty influence directly on loyalty and also directly
10. effect on brand equity. They also suggests that there was a positive relationship between the
ethical marketing and consumer food purchasing behavior. Román and Ruiz (2005) findings
suggest that ethical sales behavior could lead to satisfaction, trust and loyalty of customers to the
respective companies. Parhizgar and Abedi (2012) conclude that brand loyalty and brand
associations had a direct impact on brand equity. In this study we examine the effects of
unethical behavior on brand equity. With regard to the findings of previous research by Aaker
(1991) dimensions of brand equity include brand association (evoke), perceived quality and
loyalty. Dimensions of unethical behavior include bribery, cheating, deception, how to interact
with colleagues, how to act social behavior, irresponsibility and lack of commitment to the
company. .
Unethical behavior → 1. Bribery 2. Cheating 2. Perceived quality 3. Deception 4. Interact with
colleagues 5. Act as social behavior 6. Uncommitted to firm 7. Irresponsibility
Brand equity 1. Awareness 2. Perceived quality 3. Loyalty
12. OBJECTIVE
To understand the the components of ethical behavior and their impacts on companies all
around the world .
To know that the effects of cheating and deception on unethical behaviors were not confirmed
but the effects of other factors, bribery, interact with colleagues, act as social behavior,
uncommitted to firm and irresponsibility on unethical behavior were confirmed.
To know how quality and Loyalty had positive relationship with brand equity.
Unethical behavior has negative relationship with brand equity.
Bribery has negative relationship with brand equity.
Cheating has negative relationship with brand equity.
Fraud has negative relationship with brand equity.
How to interact with colleagues has relationship to brand equity.
The social behavior has relationship with brand equity.
Lack of commitment to the company has negative relationship with brand equity.
Irresponsibility has negative relationship with brand equity.
Unethical behavior has negative relationship with awareness and associations of brand.
Unethical behavior has negative relationship with perceived quality.
Unethical behavior has negative relationship with customer loyalty.
14. Unethical Business Practices in U.S. Health Care Alarm Physician Leaders a published article
by Weber, David O. Physician Executive telling No profession is more fundamentally rooted in
an ethic than medicine. In the 21st century, almost every young American physician graduates
from medical school by reciting some version of an oath of ethical behavior first sworn to by
doctors in the fifth century B.C. Ethical guidelines are central to medical practice because of
what one respondent to ACPE's recent poll of physician leaders summarized as the inherent
conflict of interest between the physician's role as trusted healer and the physician's role as
breadwinner - earning a living from the medical knowledge and ministrations applied. The
American College of Physician Executives addressed this subject in a poll of physician
executives that examined ethical business practices and behaviors. More than half of the
respondents - 54.6% - described themselves as very concerned about unethical
business practices in health care. Another 36% were moderately concerned. Only nine of 1,479
respondents dismissed the matter altogether.
Business ethics: A quantitative analysis of the impact of unethical behavior by publicly traded
corporations Written by Gunthorpe, Deborah L published in Journal of Business Ethics telling
The question of whether the financial markets penalize public corporations for unethical
businesspractices is examined. Using event study methodology, it is found that upon the
announcement that a firm is under investigation or has in some way engaged
in unethical behavior, a statistically significant negative abnormal (excess) return is found. This
suggests that firms are indeed penalized for their unethical actions.
Negative Publicity Effect of the Business Founder's Unethical Behavior on Corporate Image:
Evidence from China article written by Zhu, Dong-hong; Chang, Ya-ping. Published in Journal
of Business Ethics telling The unethical behavior of a business founder often leads to negative
publicity which substantially affects positive corporate image. The amount of negative
publicity relating to business founders'unethical behavior is on the rise in the age of online
15. social media in China. Based on the stimulus-response theory and balance theory, this paper
developed a theoretical model to examine how negative publicity about
a business founder's unethical behavior affects corporate image. The proposed model was
tested by the partial least squares technique. Results show that perceived severity, publicity
intensity and recovery performance are predictors of corporate image: perceived severity has a
negative impact on positive corporate image; publicity intensity and recovery performance
have positive impacts on positive corporate image; and founder image mediates the
relationships between the three predictors and corporate image. Moreover, initial consumer
impression of business founders has a positive impact on positive corporate image.
sources and consequences of workplace pressure: Increasing the risk of unethical and illegal
business practices written by Petry, Edward S; Mujica, Amanda E; Vickery, Dianne
M. published in Business and Society Review published in In February 1997, the Ethics
Officer Association and the American Society of Chartered Life Underwriters and Chartered
Financial Consultants sponsored a landmark survey to pinpoint the sources contributing to
pressure in the workplace and to determine whether or not workplace pressure increases the
risk of unethical and illegal business practices. The study found that the majority of workers
(60%) feel a substantial amount of pressure on the job, and more than 1/4 feel a great deal of
pressure. Some 6% feel very little pressure in the workplace. When they feel this kind of
pressure in the workplace, US workers most often cut corners, cut work or engage in cover-ups.
Some 56% of the workers felt some pressure to act unethically or illegally on the job.
Construction's 'Unethical Rap' Costs You BusinessAnonymous. Published in Contractor's
Business Management Report telling What is unethical conduct? In general, it's "the effort of
one party to profit at the expense of another. The emphasis is on 'gamesmanship'-not trust and
integrity, not 'win-win' situations. These games indicate a breakdown of the collaboration and
communication that characterize healthybusiness relationships," wrote Doran.
16. Differences in the Perceptions of Unethical Workplace Behaviors among Chinese and
American Business Professionals written by Jones, Gwen E published in Competition Forum
telling To remain competitive, US businesses need to understand the value and moral
differences that affect behaviors across cultures in a business context. This study examined
differences in perceived moral wrongfulness associated with unethical workplace behaviors
between Chinese and American professionals. Understanding these differences could lead to
better dealings inbusiness transactions between members of the two cultures. Hypotheses were
developed based on the differences between the two cultures on Hofstede's collectivist-
individualist dimension of culture. Respondents were asked to compare 20 workplace behaviors
that are deemed to be of an ethical nature.
Subcontracting Is Not Illegal, But Is It Unethical? Business Ethics, Forced Labor, and
Economic Success was written by LeBaron, Genevieve. Published in The Brown Journal of
World Affairs telling Deepening concern about forced labor and slavery has paralleled the
rapid growth of the world's biggest retail and brand companies in the era of globalization.
Nongovernmental organizations and the social audit industry are currently working with
corporations to slavery-proof supply chains against these illegal practices through voluntary,
corporate social responsibility initiatives. Section I documents the lengthening and growing
complexity of supply chains, the result of corporate strategies to restructure production in order
to cut costs and maximize flexibility. Section II argues that the dynamics of forced labor in
supply chains are closely tied to the prevalence and complexity of subcontracting
arrangements. The final section argues that subcontracting must therefore be understood not
only as a technical or neutral business decision, but rather as an issue of businessethics. If
prevailing models of economic success depend on subcontracting-which fuels illegal
andunethical practices like forced labor-then this business model must be reconsidered as part
of contemporary efforts to eradicate forced labor.
17. Managing business fraud and unethical behavior Vasile, Thomas H. State University of New
York Empire State College, ProQuest Dissertations Publishing, 2004. Telling In the wake of
many corporate scandals that have been revealed over the past decade, there is a growing
concern with fraudulent activity within the business community in the United States. Both
public and private businesses have fallen under heavy scrutiny due to these scandals, and
continue to be challenged by the public as a result of the growing mistrust in the
way business is being conducted.
Managing this type of activity begins at the top of any organization. Owners, managers, and
political figures within our society must take steps to create a culture of trust, honesty, and
integrity within the business community. They are responsible for developing internal control
systems that will ensure a reduction in fraudulent activity and an increase in honesty and
integrity. This position paper supports those types of management styles, culture changes, and
internal controls that will increase the probability of accountability for businesses both public
and private.
Toward Effective Codes: Testing the Relationship with Unethical Behavior written by Kaptein,
Muel published in Journal of Business Ethics telling A business code of ethics is widely
regarded as an important instrument to curb unethicalbehavior in the workplace. However, little
is empirically known about the factors that determine the impact of a code
on unethical behavior. Besides the existence of a code, this article studies five determining
factors: the content of the code, the frequency of communication activities surrounding the
code, the quality of the communication activities, and the embedment of the code in the
organization by senior management as well as local management. The full model explains 32%
of observed unethical behavior while the explanatory value of a code alone is very modest. The
study shows when codes are effective, and even when they become counter effective.
18. Will hotel employees' perception of unethical managerial behavior affect their job satisfaction?:
A study of Chinese hotel employees in China written by Wong, Simon Chak-keung; Li, Jane
Shiyin. International Journal of Contemporary Hospitality Management telling tudy aims to
investigate how Chinese hotel employees (Zhejiang province in mainland China)
perceive unethical managerial behavior. It targets to identify any underlying dimensions that
exist among the hotel employees. This study also aims to discover any relationship between
overall job satisfaction and the derived dimensions. The effects of demographic variables on
employees' job satisfaction and its relationship with unethical managerial behavior are also
investigated. Recommendations are presented to hoteliers and human resources practitioners on
developing an ethical climate in the hotel industry.
Design/methodology/approach Quantitative mixed methods incorporated both in-depth
interviews on identifying 20 unethicalmanagerial behaviors among hotel employees, and
statistical analyses of the dimensions of the said behaviors were applied to this research. As
quantitative analysis was the principal data analysis method adopted to test the hypotheses on
hotel employees' perception of unethicalmanagerial behavior and job satisfaction, a self-
administrated questionnaire was developed. A total of 268 completed questionnaires were
collected, and factor analysis, multiple regression, independent t -test and ANOVA were
conducted to analyze the data.
Consumer reactions to unethical service recovery written by Alexander, Elizabeth C published
in Journal of Business Ethics telling This research examines consumer reactions, such as
complaining and switching, to instances ofunethical business practices. Using equity theory,
this research proposes that consumers should be willing to tolerate some unethical behavior as
long as they feel their investments and outcomes remain proportionately equal. Consumers who
perceive that their outcome/investment ratio is proportionately unequal to their comparison
other will respond by switching or complaining. In this research consumers were exposed to
two types of service failures with different levels of service recovery in vignettes. Costs
incurred by the consumer during the service transaction were also manipulated in the
19. vignettes.Significant differences were found for complaint behavior in the failure recovery
vignettes tested.
Unethical behavior using information technology written by Chatterjee, Sutirtha. Washington
State University, ProQuest Dissertations Publishing, 2008. Telling aim of this dissertation is to
theoretically develop and empirically test a model predictingunethical use of IT. The arguments
are based on the Theory of Planned Behavior (TPB), philosophy of ethics, and economics
of unethical behavior. Furthermore, this work aims to understand how technology influences
this unethical use of IT.
At a broad level, this work incorporates the meta-framework provided by TPB and argues that
attitude and subjective norms toward unethically using IT are strong predictors of intention of
unethically using IT. Attitude is strongly influenced by ethical beliefs of the individual
(drawing from the philosophical perspectives) and moral intensity of the act (of unethically
using IT). Unethicaluse of IT is strongly predicted by intention to unethically use IT.
Furthermore, unethical usage of IT is seen as an example of opportunistic behavior and this
work examines as to how technology itself may provide facilitating conditions of such
opportunistic behavior, thus influencing the intention to indulge in such behavior. Overall, this
work examines unethical use of IT from philosophical (typically this is at an individual level),
social, and technological angles and blends these considerations into a general theoretical
model that can be empirically tested.
Billing Companies Respond to Petition to Stop Unethical Business Practices in the Fitness
Industry written by Fischbach, Amy published Club Industry "It's high time that this sort of
behavior be reeled in," [Al Noshirvani] says. "Unfair consumer practices are already legislated
in many industries, but it has not made it to the top of anyone's inbox in the health and fitness
industry, and it is still continued to be allowed."
"It's an attempt to be relevant where they currently are not, and it's unfortunate that they are
resorting to mud-slinging tactics in their own industry to draw attention to themselves," he
says. "The government has a lot of important issues to focus on, but this isn't one of them."
20. The petition is not a political statement, but is a way to educate the industry about third-party
billing firms with unfair and unethical business practices, Noshirvani says. To spread the word,
Motionsoft is communicating with Sen. Elizabeth Warren's (D-MA) office and sponsoring a
session at IHRSA in March titled, "The Hidden Impact of Your Process May Be Killing
Your Business."
Methodological Issues in the Design of Online Surveys for Measuring Unethical Work
Behavior: Recommendations on the Basis of a Split-Ballot Experiment written by Wouters,
Kristel; Maesschalck, Jeroen; Peeters, Carel F; W; Roosen, Marijke published in Journal of
Business Ethics telling t may influence reliability and validity of questionnaire data on the
topic, such as social desirability bias. This paper addresses two important issues in the design
of online surveys on unethical work behavior: the response scale for questions regarding the
frequency of certain types of unethical work behavior and the location of the background
questions in an online survey. We present the results of an analysis of a double split-ballot
experiment in a large sample (n = 3,386) on governmental integrity. We found that, when
comparing response scales that have labels for all categories with response scales that only
have anchors at the end, the latter provided answers with higher validity. The study did not
provide support for the conventional practice of asking background questions at the end.
A Study of the Attitudes Towards Unethical Selling Amongst Chinese Salespeople written by
Lee, Nick; Beatson, Amanda; Garrett, Tony C Lings, Ian; Zhang, Xi. Published by Journal of
Business Ethics, suppl. Supplement telling The latter part of the twentieth century saw the
Chinese economy moving towards a socialist market economy rather than a planned system.
Despite growing interest in Chinese businessethics, little work has examined ethical issues
concerning the Chinese sales force. This study draws from existing work on Chinese and
21. Western business and sales ethics to develop hypotheses regarding the perceptions
of unethical selling behaviour of modern Chinese salespeople. A survey of Chinese sales
executives is conducted and statistically analysed. Results are compared with those reported in
previous US-based research with regard to differences in perceptions of unethical selling
behaviour. The results indicate that contemporary Chinese salespeople were more favourably
disposed than expected towards unethical selling behaviour, and also more favourably disposed
than previously studied US salespeople. Younger Chinese salespeople
evaluated unethical behaviours more favourably than older ones. The results are discussed,
along with implications for theory, practice and future work.
23. TYPE OF RESEARCH
Secondary research
RESEARCH DESIGN
Descriptive research is a study designed to depict the participants in an accurate way. More
simply put, descriptive research is all about describing people who take part in the study.
There are three ways about doing a descriptive research project, and they are:
Observational, defined as a method of viewing and recording the participants
Case study, defined as an in-depth study of an individual or group of individuals
Survey, defined as a brief interview or discussion with an individual about a specific
topic
SAMPLE DESIGN
SAMPLING TECHNIQUE: JUDGEMENTAL
In judgement sampling researcher relies on his or her own judgement when
choosing members of population to participate in the study.
Judgement sampling is a non-probability sampling method and it occurs when
“elements selected for the sample are chosen by the judgement of the
researcher.
SAMPLE UNIT:
Unethical practices by the companies globally 5 companies
HP
SAMPLE SIZE:
24. 5 companies
DATA COLLECTION:
TYPE: In this case secondary data is collected
SOURCE: The source of data collected in this research is from:
Web
Magazines
Journals
DATA ANALYSIS:
QUALITATIVE ANALYSIS
In my case qualitative analysis is done . In this analysis no statistical data is
required.
26. Case 1
Corporation is a Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan. In
March 2014 the multinational corporation consisted of 338,875 employees worldwide[4] and, as
of February 2016, is the 13th-largest company in the world by revenue. Toyota was the
largest automobile manufacturer in 2012 (by production) ahead of theVolkswagen
Group and General Motors.[6] In July of that year, the company reported the production of its
200-millionth vehicle.[7] Toyota is the world's first automobile manufacturer to produce more
than 10 million vehicles per year. It did so in 2012 according to OICA,[6] and in 2013 according
to company data.[8] As of July 2014, Toyota was the largest listed company in Japan by market
capitalization (worth more than twice as much as #2-ranked SoftBank)[9]and by revenue.[10]
The company was founded by Kiichiro Toyoda in 1937, as a spinoff from his
father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while
still a department of Toyota Industries, it created its first product, the Type A engine, and, in
1936, its first passenger car, the Toyota AA. Toyota Motor Corporation produces vehicles
under 5 brands, including the Toyota brand, Hino, Lexus, Ranz, andScion. It also holds a
51.2% stake in Daihatsu, a 16.66% stake in Fuji Heavy Industries, a 5.9% stake in Isuzu, a
3.58% stake in the Yamaha Motor Company,[11] and a 0.27% stake in Tesla, as well as joint-
ventures with two in China (GAC Toyota andSichuan FAW Toyota Motor), one in India
27. (Toyota Kirloskar), one in the Czech Republic (TPCA), along with several "nonautomotive"
companies.[12] TMC is part of the Toyota Group, one of the largest conglomerates in the world.
Toyota Ignored Safety
In 2010, Toyota ignored information about safety and delayed investigating possible recalls. In
2009, they learned about sticking pedals and faulty brakes; instead of addressing the issue, they
added side airbags. In some cases, Toyota faced accusations of hiding evidence for hundreds of
cases involving death and rollovers, putting their drivers and passengers at risk.
28. Case 2
Wal-Mart Stores, Inc., doing business as Walmart/ˈwɔːlmɑːrt/, is an American multinational
retail corporation that operates a chain of hypermarkets,discount department stores and grocery
stores. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in
1962 andincorporated on October 31, 1969. As of January 31, 2016, Walmart has 11,535 stores
in 27 countries, under a total of 72 banners.[7] The company operates under the Walmart name
in the United States and Canada. It operates as Walmart de México y Centroamérica in Mexico,
as Asda in the United Kingdom, as Seiyu in Japan, and as Best Price in India. It has wholly
owned operations in Argentina, Brazil, and Canada. It also owns and operates theSam's
Club retail warehouses.[7][8]
Walmart is the world's largest company by revenue, according to the Fortune Global 500 list in
2014, as well as the biggest private employer in the world with 2.2 million employees. Walmart
is a family-owned business, as the company is controlled by the Walton family. Sam Walton's
heirs own over 50 percent of Walmart through their holding company, Walton Enterprises, and
through their individual holdings.[9] It is also one of the world's most valuable companies by
market value,[10] and is also the largest groceryretailer in the U.S. In 2015, it generated
59.8 percent of its US$288 billion sales in the U.S. from its grocery business.[11]
The company was listed on the New York Stock Exchange in 1972. In the late 1980s and early
1990s, the company rose from a regional to a national giant. By 1988, Walmart was the most
profitable retailer in the U.S.[12] and by October 1989, it had become the largest in terms of
revenue.[13] Geographically limited to the South and lower Midwest up to the mid 1980s, by the
early 1990s the company's presence spanned from coast to coast—Sam's Club opened in New
Jersey in November 1989 and the first California outlet opened in Lancaster in July 1990. A
29. Walmart inYork, Pennsylvania opened in October 1990, bringing the main store to
the Northeast.[14]
Walmart's investments outside North America have seen mixed results: its operations in
the United Kingdom, South America, and China are highly successful, whereas ventures
in Germany and South Korea failed.
Walmart's reputation is for "low prices", compared with Target's for selling "cheap chic"
and Costco's for offering low-price, limited-selection "retail treasure hunts", where "one's
shopping cart could contain aUS$50,000 diamond ring resting on top of a 64-ounce vat of
mayonnaise"
Wal-Mart Lacks Compassion
Wal-mart is well-known for their unethical business practices concerning employees. They
consistently place profits before the health of their employees. Just one example is Deborah
Shank, who was in a collision involving a semi-trailer in 2000, resulting in permanent brain
damage and confinement to a wheelchair. Years later, they sued her family for medical costs,
leaving Mrs. Shank to rely on Medicaid for around-the-clock care.
30. Case 2
Apple Inc. is an American multinational technology company headquartered
in Cupertino, California, that designs, develops, and sells consumer electronics,computer
software, and online services. Its hardwareproducts include the iPhone smartphone,
the iPadtablet computer, the Mac personal computer, theiPod portable media player, and
the Apple Watchsmartwatch. Apple's consumer software includes theOS X and iOS operating
systems, the iTunes media player, the Safari web browser, and the iLife andiWork creativity and
productivity suites. Its online services include the iTunes Store, the iOS App Storeand Mac App
Store, and iCloud.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to
develop and sell personal computers.[5] It was incorporated asApple Computer, Inc. on January 3,
1977, and was renamed as Apple Inc. on January 9, 2007, to reflect its shifted focus toward
consumer electronics. Apple (NASDAQ: AAPL) joined the Dow Jones Industrial Average on
March 19, 2015.[6]
Apple is the world's largest information technology company by revenue, the world's largest
technology company by total assets,[7] and the world's second-largest mobile phone
manufacturer.[8] On November 25, 2014, in addition to being the largest publicly traded
corporation in the world by market capitalization, Apple became the first U.S. company to be
valued at over US$700 billion.[9] The company employs 115,000 permanent full-time employees
as of July 2015[4] and maintains 453 retail stores in sixteen countries as of March 2015;[1] it
31. operates theonline Apple Store and iTunes Store, the latter of which is the world's largest music
retailer.
Apple's worldwide annual revenue totaled $233 billion for the fiscal year ending in September
2015.[3]The company enjoys a high level of brand loyaltyand, according to the 2014 edition of
the InterbrandBest Global Brands report, is the world's most valuable brand with a valuation of
$118.9 billion.[10]By the end of 2014, the corporation continued toreceive significant
criticism regarding the labor practices of its contractors and its environmental and business
practices, including the origins of source materials.
Apple Uses Slave Labor
Apple relies on child slave labor that is working in dangerous conditions, for ten hours each
day while being exposed to cancerous vapors. The conditions at the manufacturing plant
Foxconn are bad enough that they had to install "anti-suicide nets." The workers live in horrible
conditions and experience unreasonable workloads and humiliating discipline. Apple has
reduced some of their work with Foxconn, but they still rely primarily on them. Apple also
used Irish tax loopholes to avoid some taxes.
32. Case 3
Nestle
The World Health Organization found children in developing countries who fed on Nestle’s
infant-formula had mortality rates five to ten times greater than that of breast-fed children. The
problem was Nestle’s sinister campaign of appointing uniformed nurses to distribute the baby
formula to poor mothers for free, long enough for lactating mother’s milk to dry up. The
mother and child now became entirely dependent on Nestle’s infant formula, and since most of
them could not afford the formula, they gave their children an insufficient quantity of the
formula. The formula also required clean water, which most mothers could not access.
Nestle again made the news when they sued the country of Ethiopia, one of the world’s poorest
countries, for six million dollars during the time when it was in the midst of the worst drought
33. in 20 years. Nestle wanted compensation for its stake in the Ethiopian Livestock Development
Company (Eldico), which it obtained through an investment in Schweisfurth, a German
company. Ethiopia had nationalized Eldico and sold it for a profit. Nestle finally reached a
settlement of $1.5 million with Ethiopia, the maximum the government could afford.
Recently, Nestle has made headlines again for getting caught spying on Attac, a non-
government organization. Nestle has been ordered to pay compensation to the organization.
products
1Cereals
2Yogurt
3Coffee
4Water
5Other drinks
6Shelf stable
7Chilled
8Ice cream
9Infant foods
10Performance nutrition
11Healthcare nutrition
12Seasonings
13Frozen food
34. Case 4
Philip Morris USA is the United States tobaccodivision of Altria Group, Inc. Philip Morris
USA brands include Marlboro, Virginia Slims, Benson & Hedges,Merit, Parliament,
Alpine, Basic, Cambridge, Bucks, Dave's, Chesterfield, Collector's Choice, Commander,
English Ovals, Lark, L&M, and Players.
On January 27, 2003, Philip Morris Companies Inc. changed its name to Altria Group, Inc.
Even under this new name, Altria continues to own 100% of Philip Morris USA
(abbreviated PM USA). Some view this name change as an effort by Altria to deemphasize its
historical association with tobacco products.
Philip Morris USA Inc. home offices and facilities include headquarters, manufacturing,
processing, and support facilities in the Richmond, Virginia, area; sales offices crisscrossing
the United States; and an office in Puerto Rico.
Philip Morris Advertised To Kids
The tobacco giant Philip Morris has been considered unethical for years as a great deal of
advertising from them targets kids. Despite stricter regulations, Philip Morris still prominently
35. places ads and products in magazines, convenience stores, and delis. They continue to try to
create the image of smokers being cool and are considered the biggest reason for young
smokers.
37. S.NO. NAME OF
COMPANY
PROMOTIONAL
STRATEGY 1
PROMOTIONAL
STRATEGY 2
PROMOTIONAL
STRATEGY 3
PROMOTIONAL
STRATEGY 4
Advertising Sponsoring
events
Seminars Press releases
1 Toyota
2 Walmart
3 Apple
4 nestle
5 Philip
morris
From the above table it is clearly visible that maximum straties are adoped by
Nestle
Toyota
Apple
Walmart
Philip morris
Reasonsfor ADVERTISING:
38. The reason for popularity is because it is a paid form of non-personal
communication. It is used to create awareness and transmit information in order to
gain a responsefrom the target market. advertise their products in News Papers
and Magazines:
Nestle give ads in the news papers and magazines round the year to continue its
brand image and also when new products are introduced. Normally its ads are
published inTimes of India.
Nestle also advertise its services in the Electronic media like:
1.Internet
Companies like nestle all have websites from which people can get the information
about their products, prices, various schemes, and lots of other information. People
can also purchase the productthrough this website.
2.Television:
Companies like Toyota nestle apple, advertise on television to make people aware
of their products and services.
3.Hoardings:
LIC put its hoardings where there is a mass flow of people, especially outside the
railway station or at the backside of the bus.
The Secondbestis SPONSORING EVENTS
ReasonforSPONSORING EVENTS:
The reason of second best is because most companies sponsorthe events to
promote their productin such events where large number of people are gathered,
because maximum number of audience is communicated in events such as sports ,
about the brand or new productintroduced.
The lesser promoting strategies used is SEMINARS and PRESS RELEASE
39. REASONS:
Companies conductseminars in different organization and institution to promote
their brand and productin groups gathered. These are held to provide information
about the new productlaunched, position of the company in the market.
41. As we can observe from the results, the effects of cheating and deception on unethical
behaviors were not confirmed but the effects of other factors, bribery, interact with colleagues,
act as social behavior, uncommitted to firm and irresponsibility on unethical behavior were
confirmed. In addition, three components of Awareness, Perceived quality and Loyalty have
positive relationship with brand equity. Monday reported that ethical sales behavior could lead
to more satisfaction, trust and customer loyalty to the respective vendor company, which are
consistent with the findings of this survey. Mortazavi et al. also performed an investigation on
the role of moderator of some variables on the relationship between social responsibility and
commitment to corporate social responsibility . However, unethical behavior was unaffected
on consumer attitudes toward the brand while in this study the opposite side was proved and
showed that the impact of unethical behavior had a strong relationship with the brand equity.
Nevertheless, Behavior and attitudes of staff and people in an organization and to customers
and clients is an important factor and its importance is obvious. We hope this study could shed
some light on learning more about Iranian culture.
