Part 1: After completing this week’s reading assignments and lectures, write a 250-word paper on the following topic:What does it mean that ethics are “good for business”? List and explain at least te
Case 2.1: Borland’s Brave Beginning
Business and management ethics The textual materials in Chapter 2, Case 2.1 at page 105 of the text, relate the story of Philippe Kahn. In engineering the growth and early success of Borland International, Kahn and his fellow incorporators envisioned taking on the software giant Microsoft. The vision fell short and in 2009 Borland was acquired by Micro Focus for $1.50 per share, an ignominious end to the dream that nevertheless was lauded by Kahn as a synergistic result. The text relates the story of Kahn’s inducement of a salesman for BYTE Magazine to offer credit terms to Borland for the placement of Borland advertising in the magazine. Kahn orchestrated a deceptive scenario which appeared to the salesman to suggest significant operation and business activity. In fact, it was all a ruse but the salesman ended up offering to place Borland’s ad in the magazine on credit. The ad was successful, presumably Borland paid the magazine, and Borland reaped the benefits of $150,000 in sales of software. Participate in an online threaded discussion with at least two posted entries discussing the question: Since Kahn’s actions appeared to be a win-win for Borland and for BYTE Magazine, would you characterize his actions as shrewd business? As ethical? Why or why not? Case 2.1: Borland’s Brave Beginning Philippe Kahn the colorful former CEO of Borland International, built a powerful software company from the ground up with a series of brilliant business moves, including the 1991 acquisition of Ashton-Tate, one of the software industry’s biggest companies, for $440 million. At one point the company was extremely successful culminating in building a palatial headquarters complex costing $100 million. At one point Kahn even entertained thoughts of challenging Microsoft as the world’s top software manufacturer. While the company has recently fallen on hard times, its beginning is one that some would consider morally questionable while others would denote as being “smart moves within the game.” In an interview with Inc., magazine in 1998 (see p. 95) Kahn told the story of Borland’s humble beginnings. Operating out of two small rooms and strapped for cash, he couldn’t afford to place an ad in BYTE magazine, the best forum to reach his target market. To convince the ad salesman to extend credit terms, Kahn hired extra people to scurry around and made sure the phones were ringing in order to look busy. He prepared a media plan on a chart in which BYTE were crossed out but made sure the salesman accidently saw the chart. When the salesman asked if they wanted to advertise in BYTE, Kahn replied that it was not the right audience and that they couldn’t afford it. The salesman pleaded and eventually gave good terms of credit. The ad ran once and sold $150,000 worth of software, launching a successful venture. The text relates the story of Kahn’s inducement of a salesman for BYTE Magazine to offer credit terms to Borland for the placement of Borland advertising in the magazine. Kahn orchestrated a deceptive scenario which appeared to the salesman to suggest significant operation and business activity. In fact, it was all a ruse but the salesman ended up offering to place Borland’s ad in the magazine on credit. The ad was successful, presumably Borland paid the magazine, and Borland reaped the benefits of $150,000 in sales of software.
1. What do you think about Kahn's actions? do his actions amount to shrewd business, deception or both?
2. How would Kahn's actions be seen in light of Carr's description/assumption about business vs. Willards?
3. Some might argue that since everyone "won" in the end, Kahn' decision was ethical? do you agree why or why not?
