SMG SM 131 Lecture Notes - Lecture 6: Costco, Business Ethics, Peter Drucker

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Kabrina Chang

Document Summary

Peter drucker: would say there is no such thing as business ethics, do no harm, purpose of a business is to create a customer, customer first, shareholder value will follow. Costco: calvin klein jeans for . 99, 14% mark-up rule, gets better deal so could make greater profit. Albert carr: no one in business expects the truth, business is based on bluffing and game strategy, if it"s legal and makes a profit. Fixed piece but didn"t change number: trying to hide that was ever problem in first place. Delphi told gm about faulty piece but gm still used it: said had part but didn"t meet specifications of what wanted. Gm said they"d take it: delphi had indirect blindness. Gm management taking blame as whole, not just one individual: had motivated blindness b/c wanted parts as inexpensive as possible.