Chapter 4: Ethics and Social Responsibility - McGraw-Hill Introduction to Business

Bank of America Fined $150 Million by Federal Regulators

July 12, 2023

According to consumer watchdogs, for years Bank of America charged customers a variety of “junk fees” while also mishandling accounts. Not only did the financial giant withhold perks that were promised to some credit card holders, but it also double-charged overdraft fees and secretly opened cards in customers’ names without their knowledge. As a result, Bank of America received a $150 million fine from the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau (CFPB), which Continue reading →

Consumer Financial Protection Bureau, Ethics, Banking, Regulation, Bank of America, Fraud

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

[VIDEO] The Business Model Behind Buy Now, Pay Later Apps

July 6, 2023

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Retailers have long relied on credit cards and companies like Paypal to provide payment options for customers, but recently these services have faced some new competition. Firms like Affirm, Klarna, and Afterpay offer “buy now, pay later” models that can be an appealing alternative to credit cards. As the video below shows, though, these services could potentially be dangerous to consumers while also failing to maintain steady profits for investors.

Questions:

What are the potential advantages and disadvantages of using Continue reading →

Paypal, Ecommerce, Ethics, Retail, Currency, Money, Credit, Payment services

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 17: Accounting, Chapter 20: Money and Financial Institutions, Videos

[VIDEO] The High Stakes of Spotting Fakes in the Luxury Watch Market

June 23, 2023

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From 2011 to 2021, the value of Rolex watches outperformed real estate and stock markets as well as commodities like gold. This video looks at the risks and rewards of the $20 billion used watch industry, from soaring demand and big price tags to small margins and extensive counterfeiting.

Questions:

Why are counterfeit products harmful to luxury brands like Rolex?
How does high demand for Rolex encourage counterfeiters to produce knockoffs?

[VIDEO] How Streaming Changed the Business of TV Writing

June 15, 2023

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The Writers Guild of America has been on strike for more than a month and a half as they continue to demand better working conditions in modern Hollywood. This video takes an in-depth look at how streaming services like Netflix and Hulu completely changed the business of writing for television, from shorter schedules and smaller residual checks to depriving writers of vital experience by keeping them off set.

Questions:

How does spending time “on set” allow writers to gain Continue reading →

Labor Relations, Streaming, Compensation, Television, Product Distribution, Operations Management, Ethics, Training, Human Resources, Entertainment

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media, Videos

Apps Cause Confusion with Customer Ratings

June 9, 2023

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On rideshare apps like Lyft and Uber as well as platforms like Airbnb, customers are encouraged to rate their overall experience out of five stars. The general goal of these ratings is to inform both the company and future customers about an individual’s performance on the job. After all, if an Uber driver keeps their car dirty or swerves all over the road, then the rider can leave a low rating to reflect their subpar experience. Then again, that’s how Continue reading →

Transportation, Marketing, Uber, Ethics, Lyft, Entrepreneurship, Product Distribution, Airbnb, Customer feedback

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Customers Question Ethics of Self-Checkout Tipping

May 31, 2023

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The Covid-19 pandemic ushered in a new era of zero-contact transactions, with self-checkout terminals becoming ubiquitous in American grocery stores, big box retailers, sports stadiums, and many other businesses. While these stations can be convenient for customers and cost-effective for companies, there’s one feature that some people are not too happy about: prompts to leave a tip. “They’re cutting labor costs by doing self-checkout. So what’s the point of asking for a tip? And where is it going?” said Ishita Continue reading →

Self-checkout, Marketing, Operations Management, Product Development, Ethics, Product Distribution, Compensation, Tipping

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

Ed Sheeran Wins Copyright Lawsuit

May 24, 2023

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In 2017, English pop star Ed Sheeran got hit with a legal complaint alleging that the melody of one of his most popular songs was copied from another tune. According to plaintiffs in the lawsuit, his 2014 hit “Thinking Out Loud” resembled the Marvin Gaye classic “Let’s Get It On” to such a degree that it infringed on the latter song’s copyright. Sheeran vehemently denied any wrongdoing and challenged the suit, which lingered in court for years due to the Continue reading →

Product Development, Copyright, Ethics, Entertainment, Entrepreneurship, Music, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter A: Business Law

[VIDEO] Why Hitting the Debt Ceiling Would Be ‘Catastrophic’

May 11, 2023

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Lawmakers are once again butting heads about raising the debt ceiling, a limit on the total amount of money that the federal government is authorized to borrow. This video looks at the potential economic consequences that could follow if legislators fail to reach an agreement and default on the nation’s debt.

Questions:

How does debt help drive the U.S. economy?
Why are U.S. bonds traditionally seen as reliable investments? How could that change if the country defaults on its debt?

Ethics, Federal Reserve, Bonds, Securities, Regulation, Economics, Debt ceiling, Global

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

[VIDEO] How the FDIC Insures Customers’ Deposits

March 24, 2023

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The Federal Deposit Insurance Corporation (FDIC) does not get much attention unless something goes drastically wrong in the financial world, such as the recent collapse of Silicon Valley Bank (SVB). This video explains how the organization covers customers’ deposits in order to prevent bank runs, and how the fall of SVB presented the FDIC with some unique challenges.

Questions:

Why was the FDIC formed, and how does it protect customers’ deposits?
How did the FDIC’s handling of the SVB collapse Continue reading →

Regulation, Economics, Federal Reserve, Securities Markets, Financial Crisis, Ethics, Stock Market, FDIC, SVB, Bailout

Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

Companies Confuse Job Seekers with Fake Listings

March 23, 2023

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Although the collapse of SVB and the resulting economic fallout has rattled global markets, many companies are hoping to restore faith among investors by showing signs of growth. The clearest sign of a growing business is one that is hiring people, after all, leading some firms to place job listings with no intention of actually bringing anyone on board. In fact, a recent survey of 1,000 hiring managers found that 27 percent of respondents reported leaving job listings up for Continue reading →

Turnover, Economics, SVB, Ethics, Human Resources, Banking, Hiring

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 11: Human Resource Management, Bonus Chapter A: Business Law