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Case 2

The case study discusses Procter & Gamble's unethical practice of dumpster diving for competitive intelligence, highlighting its negative impact on stakeholders and the company's reputation. It emphasizes the need for businesses to adhere to ethical standards and legal regulations while acquiring information, suggesting alternative methods that respect moral principles. The study concludes that multinational corporations must prioritize ethical practices to maintain stakeholder trust and avoid reputational damage.

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prabh basra
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45 views3 pages

Case 2

The case study discusses Procter & Gamble's unethical practice of dumpster diving for competitive intelligence, highlighting its negative impact on stakeholders and the company's reputation. It emphasizes the need for businesses to adhere to ethical standards and legal regulations while acquiring information, suggesting alternative methods that respect moral principles. The study concludes that multinational corporations must prioritize ethical practices to maintain stakeholder trust and avoid reputational damage.

Uploaded by

prabh basra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Toronto Metropolitan University

Case study 2 - Procter & Gamble goes Dumpster


Diving
Prabhjeet Singh Basra
501211664
GMS 802-011: Ethics and Regulation of International Business
Dr. Valerie Onyia Babatope
Due Date: Feb 24, 2025
Corporate Espionage vs. Ethical Boundaries: Using trash diving for information acquisition
was an unethical move by Procter & Gamble (P&G) even if the practice might have legal
validity in certain jurisdictions. Every business action needs to display justice and integrity
regardless of legal status according to ethical business practices. The intelligence-gathering
method employed by P&G used competitor vulnerabilities beyond what was acceptable as it
deviated from fair competition. The difficulty arises from obtaining competitor sensitive
information through methods which were both within legal boundaries but against company laws
together with trade conduct norms.
Stakeholder Implications: The activities at P&G influenced all stakeholders in the company.
Worker job security and their work environment could be compromised by the post-scandal
situation. The scandal increased consumer doubt about the company brand because they became
skeptical about ethical business principles and moral standards. The unauthorized stealing of
company confidential information negatively affected competitors particularly Unilever and
possibly altered their business strategy decisions. The long-lasting harm unethical activities do to
reputation and finances requires businesses to predict how their actions will influence
stakeholder relationships and overall trust.
Regulatory and Legal Perspectives: The practice of dumpster diving runs counter to
international laws and ethical business conduct though certain jurisdictions approves it. Many
nations impose strict prohibitions against such data acquisition methods because of their
regulations for business secrecy protection and electronic data protection. Stricter regulatory
guidelines must define precise boundaries for competitive intelligence collection thus businesses
can maintain legal and moral competition standards. Businesses would avoid questionable
intelligence methods in case industry moral codes and legal protections remain strict.
Cultural and Industry Norms: Business and cultural standards determine how people view
ethical behavior. The consumer goods industry with its high competition levels shows more
aggressive competitive intelligence approaches. While industry customs matter in some aspects
ethical standards should be maintained at all times. When assessing P&G's behavior the company
should be measured by mainstream ethical standards rather than specialized practices within its
sector. The organization should follow both its established moral standards and basic corporate
principles above and beyond industry norms.
Reputation Management and Crisis Response: The videotaping incident probably damaged
P&G's corporate reputation throughout national and international markets. Nations express their
anger through customers who lose trust while corporations develop weakened business
relationships due to organizational ethical violations. For P&G to restore its reputation they
should have implemented stronger internal monitoring combined with updated competitive
intelligence standards and public declaration of their ethical business principles. Formal
apologies combined with CSR activities help stakeholders regain their trust in the company.
Ethical Alternatives: The company possessed multiple methods to gain competitive insights
through means that respected moral principles. The company possesses multiple data collection
methods which include consumer surveys and financial document inspections of competitors
alongside public record market research and trend monitoring. Open and legal collection
methods form the ethical framework since they must exclude deception and falsified information
and privacy breach. Companies must establish investments that protect stakeholder trust while
ensuring equal market competition standards.
Lessons for Multinational Corporations: The case provides multinational firms with
significant insights about finding equilibrium between doing what is right and gaining
competitive advantages. Business survival demands that organizations identify ethical practices
as their primary business priority to maintain stakeholder trust. A business avoids ethical failures
through comprehensive compliance systems and by cultivating integrity-based company culture
while closely watching third-party contractors. Business success should start from ethical
leadership and innovation together with quality rather than using unethical intelligence-gathering
methods.

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