Question

1979·"Transaction-Cost Economics: The Governance of Contractual Relations." Journal of Law and Economics 22: 233-261 ·1975. Markets and Hierarchies : Analysis and Antitrust Implications. New Yok,式vHee Press. Zhuang, J., V. Bier, and is, 2110. "Modeling Secrecy and Deception in a Maldga Fii Aitacker-Defender Signaling Game." European Journał of Operations Research 203:409-418. Critical Thinking Why would an organization want to proactive deception in its strategy? 1. 2. What are some of the historic reasons for deception in organizations? 3. Is deception ethical? Create Central

Answer 1

1. The market for products and services is a critical balance between the power of suppliers and consumers. A proactive deception tactic usually allow the shift of this power towards the favor of the suppliers. That is the corporations and organization. Proactive deception example could be that a new favorable (to the consumers) plan is available but the company chooses not to mention it to consumers. This is often done in order to keep the revenue and profit margins higher for the corporations. This is why many of the organization may include proactive deception methods in its strategy.

2. The reasons for deceptions in organization often seen to be due to the following

• Reduce the impact of brand image (Volkswagen environmental impact scandal)
• Maintain revenue and profit margin (Telecom company not informing users about better plans)
• Reduce cost for the organization (Not providing the best possible benefit plan for the employees)

2. Deception is never ethical. In order to determine the ethical quotient of any decision we must judge it against the ethical principles. Two of the basic principles is non maleficence and beneficence. This means not causing any harm to others knowingly. If organizations adopt a proactive deception method, they do not necessarily harm the consumers but may deprive them of the opportunity to make better choices. That in turn is a violation of non-maleficence and beneficence.