John Carlo E.

Lalap, BSA- IV

Mr. Seballe

Answers
1.
a. They might have taken this issue with AIT proactively in such way that they might
have approached AIT earlier before suit case became of public knowledge or for
this instance, the release of article of the New York Times about it. They should
have made the customer service active. Alternatively they may also recall their
products for in the first place, they are knowledgeable of the defects in the
capacitors of the units.
b. Filing a suit is costly therefore a consumer would not prefer to spend more cash
than what they have spent for the computer unit. Moreover, in the case of the
other key customers they might have settled the same issue with Dell other than
bringing this to the court. It could be in financial settlement, extension of the
warranties on other arrangement.
c. Dell did not commit unethical issue when it comes of the manner or approach they
handled their problems because they only tried not to make the situation worsen.
What is unethical in the series of events is the moment they sold the computer
units with defects therefore committing fraud and deception.
d. Toyota was more ethical in handling problems with their products than how Dell
handled theirs. They acknowledge the fact that their products are defective and
even recall over four million autos. Dell took the risk of pursuing selling faulty
personal computer units and being sued for deceptive products.
2.
a. They should first notify their customer of the automatic software renewal by
sending them not only email but also to their mobile number and social media
accounts. Together with the notification, they should also include the term for
billing and payment, any other charges in the services, updates and other
necessary customer service. They should also include a link or contact number for
customer service line for more clarifications and other concerns. Inclusion of the
terms of services is ideal so customer may able to do the review.
b.
START

EN
D

Expiratio
n

Update
customer of
expiration

Ask customer
for continuance
of service

Show terms
Show options
Configure bank for
and conditions
of service for
the payment of
and cost
client
customer
c. Positive: 1. Additional sales for seller 2. Convenience for buyer 3. Savings for both
seller and buyer
Negative: 1. No consent from buyer 2. Unnecessary billing for buyer 3. Expense for
settlement for buyer
d. Automatic Renewal of software licenses is not an unethical practice as long as
proper notification and consent is given to the buyer. It is also a simple way for the

software provider to ensure an ongoing stream of revenue. There is no problem

with this method as long as it should be ethical.
3.
a. By being ethical, CIO might handle the situations given in the scenarios effectively.
CIO in the first scenario, as also said by a reader, might put the departing
employees into the job of focusing on the CRM rather employing for outsourcing.
In the second scenario, CIO could have helped or give solution for a problem that
an employee is holding back. After all, the discretion must be the burden of the
proper personnel, in this case, the CIO and not totally of the said employee.
b. In the first scenario, the short- term loss of employing the departing employees for
the CRM, customer service in the start will not be focused because of the
deadlines that they may also working on at the same time but the long term effect
is that it will create loyalty among the employees.
In the second scenario, the business would provoke his immediate
counterproductive intervention in an important project but looking at the lighter
side, possible solutions may be plotted to anticipate for the problem, thus,
preventing for more complications.
c. The business must not choose between good ethics and financial benefits.
Business must choose both. For example, in employing CRM, the company must
use its employees to do the job. There will be tradeoffs but it must look more on
the long term result of the ethical decision. This is the same with sharing
undesirable information to your boss, it would back off the boss
counterproductive intervention but the employee must think that anticipation is
better.
d. Schrage is trying to emphasize that the CIO must not be subjective, he must be I
line with the companys objective and he must be strict when it comes of the
implementation of the strategic management. He must be emotionless,
independent and must be free from familiarity threat to avoid being restricted with
personal issues and conflicting interests between the related parties.