Question

CHAPTER 4 Application Questions If you've ever spent more than 60 seconds in the hair care aisle at Walgreens or CVS, you have likely seen products by Organix. The products by the trademarked brand are packaged bottles with text describing signature ingredients, such as Brazilian keratin therapy, Moroccan argan oil, or teatree mint shampoo. The shampoos and conditioners generally sell for between $5 and $10. In 2012, the brand generated $250 million in revenue. Despite the brand name, none of the Organix products are organic che company doesn't claim they are. Organix's parent company wants to sell it, but large beauty companies like Procter & Gamble and L'Oréal, which seem like obvious buyers, are not at all interested. Do you think Organix has an ethical issue? Why or why not? If you were in charge of acquisitions at a beauty company, would you consider purchasing Organix? Do some research on the company, make a decision, and defend it. 2. A growing number of businesses-including videogame developers, cigarette companies, soft drink producers, liquor marketers, and fast food chains are feeling the heat from the government, the press, and society at large for encouraging harmful consumer habits. However, in our free market economy, people are free to choose the products they consume (within legal boundaries, of course). Where does personal responsibility end and corporate responsibility begin? How does your response change across specific industries? What role (if any) do you believe the government should play? Develop a rationale for each of your answers.

Answer 1

ANSWER:

The name of Organix company is very misleading. It is quite relatable to the word ”organic”, however there is nothing organic about its product. They even don’t claim to be organic yet many people get tricked by the name and buy the product.

This is the ethical issue involved with the company.

• If I had to consider acquiring Organix company, I will definitely opt to do the same, as the company has an interesting range of products and is respected among the audiences.

However, I would intend to do a revamp of the brand and launch it with a new name, which is less controversial.

This way the brand equity of the product can be maintained and the ethical issue revolving around the brand can be solved.