1. Marvin Ryder Assistant Professor, Marketing & Entrepreneurship MBA P715 Entrepreneurship Week 10

2. From The Hamilton Spectator Tax Scam Costs Burlington Man $190,000 David Morgan of Burlington, who operated a sandwich franchise under Ashmic Enterprises Inc., has been fined $190,000 for tax evasion and will serve three months of conditional arrest and three months of curfew. The fines imposed represent 100% of the income tax and 150% of the GST/HST evaded. Canada Revenue Agency investigators found Morgan’s home computer contained electronic files labelled “real” sales and “fake” sales. Officials determined through corporate bank account records that the “fake” sales were used to file taxes. Those convicted of tax evasion must repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years. The Hamilton Spectator, December 2, 2013

3. Public Perception of Ethical Professions – Top of the Table Percent shown is the sum of “Very High” and “High” responses Source: The Gallup Poll Profession19811985198919931997200120052009 Druggist59%65%62%65%69%68%67%66% Clergy63%67%55%53%59%64%54%50% Doctor50%58%52%51%56%66%65% Professor45%53%51%52%55%58% 54% Police44%47%49%50%49%68%61%63% Mortician30%32%35%34%36% 44%47% Journalist32%31%30%26%23%29%28%23%

4. Public Perception of Ethical Professions – Bottom of the Table Percent shown is the sum of “Very High” and “High” responses Source: The Gallup Poll Profession19811985198919931997200120052009 Real Estate Agent 14%15%16%15%16%17%20%17% Lawyer 25%27%22%16%15%18% 13% Union Leader 14%13%15%14%15%17%16% Politician 15%20% 14%12%25%15%12% Advertising Agent 9%12% 8%12%11% Insurance Agent 11%10%13%10%12%13% 10% Car Dealer 6%5%6% 8% 6%

5. Three “Levels” of Ethics Personal Ethics Professional Ethics Corporate Ethics How do you handle a conflict between them?

6. Consider My Definition of Marketing The art of finding out what consumers/ customers want and then giving it to them in a way better than the competition while making a profit over the long term. Three Immediate Ethical Dilemmas Long-term vs. Short-term profits Not everything that people want should they have. Some things people don’t want they should have.

7. Ethical Dilemma #1 You invented and are selling a new type of automobile engine. You heard that a competitor has a new product feature that will please consumers more and increase its sales. You suspect that most of this increase will come from decreased sales of your product. The competitor has announced that it will give a “sneak preview” demon- stration of its new feature at a private customer meeting held concurrently with the annual Canadian Automobile Show in Toronto. You will have a booth at the Show and you could easily try to send a “snoop” to this meeting. This person would pretend to be a customer but is really there to learn more about the new feature so you can develop a competitive response. What would you do?

8. Ethical Dilemma #2 You launched a small pharmaceutical company which is doing business around the world. You have just finished interviewing a very capable candidate for a job as a sales- person. She was the best qualified candidate and her interview was the best by far. Even when her electric wheelchair made a funny noise, she was able to make a little joke and put you at ease. The second best candidate for the job was not as experienced and he was not quite as outgoing or friendly. He did look quite athletic and you learned that he was a good golfer and also a marathon runner. You know that some potentially important global customers prefer dealing with men given their national customs. As well, her wheelchair could make international travel more difficult. Who do you hire?

9. More Business Dilemmas Marketing Research or Invasion of Privacy? Price Discrimination – Should everyone pay the same? Planned Obsolescence – Can products last forever? Serving Unprofitable Markets – Rural/ “ street” areas Product/Service Similarity – Copycats? Promotion to Children, Elderly, New Canadians

10. Decision Techniques Greatest good for the greatest number Balance the rights of individuals against the rights of the group What does the decision say about the entrepreneur or the company? What will “work” in the world as it is?

11. More Decision Techniques The “60 Minutes” Test – Imagine your decision as a headline in the newspaper The “Golden Rule” – “Do unto others as you would have others do unto you” The “Obituary Test” – How will history look at the decision? The “Shield of Legality” – Is it illegal? If not, it must be okay.