Better Business Bureau
For nonaccredited business, since the rating is an important factor for consumers to choose a service/product provider, the consumer would more likely to choose a BBB member or an accredited business, and thus make those nonaccredited companies lose their business despite how good their services are. Consumers: consumers would be confused if BBB provides an unfair rating and base the ratings on whether the company is a member of the association.
Plus, since BBB is popular and trustworthy of its objectively rating system, customers are more likely to pay more for same services or products if they choose a BBB member business because an accredited business must make up for what it paid to BBB by raising the price. Non-profit organization: Since BBB also rate non-profit organizations, these organizations are also slightly affected by the actions of the BBB. 2. Clearly identifying any laws involved or stating that there are no laws involved?
There are no laws involved because this is a core practices. Core practice is a highly appropriate and common practice that helps ensure compliance with legal requirements, industry self-regulation, and societal expectations. 3. Explicitly stating the moral philosophy on which you are basing your answers. Justice as it is applied in business ethics involves evaluations of fairness or the disposition to deal with perceived injustices of others. Justice is fair treatment and due reward in accordance with ethical or legal standards.
In business, this means that the decision rules used by an individual to determine the justice of a situation could be based on the perceived rights of individuals and on the intentions of the people involved in a given business interaction. For that reason, justice is more likely to be based on deontological moral philosophies than on teleological or utilitarian philosophies. 4. What action(s) should be taken next; who should take them? A third indifferent business association should be involved to supervise or check BBB’s ratings.
BBB should make regulations concerning fair ratings, how they will objectively rank all business and show the process transparently to all the businesses involved. 5. Which is the Better Business Bureau’s most important stakeholder, businesses or consumers? Businesses are more important to BBB because the services it provides is paid by business and also used by business. The ratings for different companies matter a lot for them and somehow decide how the consumers view their businesses. . Do you believe the BBB can be truly impartial given its financial dependence on businesses? I don’t believe the BBB can be truly impartial since it relies on those who paid it. Just like accounting firms have troubles being impartial when auditing for their clients while paid by their clients. 7. What actions would you take to ensure that an ethical misconduct disaster such as the pay-for-play scheme does not happen again? Public supervision and self-regulation.
First, the rating process and procedure must be specified and listed in the BBB’s regulation and rules. Second, all the businesses involved (accredited and nonaccredited businesses) should have the right to see their ranks and the evidence of the decision. Last, at least third party association that is independent and indifferent of either accredited or non-accredited companies should do the final check work, to see if the rating is fair and true.