Legal and Ethical Leadership and Management
The Status of Normandale for Selling the Alleged Knock-Off Products at a Lower Price
Yes, it was unethical for Normandale to sell “knock-offs” and reduce the price of the product of any amount without the permission of the owner. The Normandale’s act of lowering the price of the counterfeit fashion products was illegal, and it produced a negative impact on the designer. It made the designer’s customers to purchase the counterfeit items. Normandale deceived the buyers to buy goods thinking that they are authenticated because the counterfeit fashion products are almost identical to the designer’s products, trademarks and packaging. These characteristics convince the buyers that they are buying the right product at a lower price. Adopting Written Codes. The Normandale is in the situation, which shows that business deals are often illegal. As a result the business reputation has been damaged. Consequently, most customers will be afraid to make a purchase in that retail shop (Gardner, 2000). It made the business to be fishy, and its operation will reduce because most customers will not trust their products anymore. The owners and employees of Normandale will lose employment since sales might reduce and will not meet the employee’s payment. The confidentiality of the business dealing has been damaged because of the unethical manner of conducting business.
The Federal or State Laws Protect Owners of Intellectual Property
The state or federal law protects the disclosure of any material non-disclosure information concerning any business activity that can lead to the trade in the business disclosure or stock by those outside the business entity. The Normandale can be provided with the trade restriction, where such restriction can prohibit the retailer from engaging in certain business activities with particular entities and individuals. The federal or state laws can issue sanctions for non-compliance in case the trader does not comply with laws of business. Again, the retailer can be imprisoned and forced to pay a fine, and the entity can be prohibited to continue to conduct the same line of business. The federal laws protect the owners of the intellectual property enabling them to recover the defender profits, the cost of the action and damages encountered by the owner of the complainant (Judge, 2007). The owner of the intellectual property can recover damages and profits from alleged acts because Normandale committed the act intentionally to cause confusion and deceive the customers. The owners of Normandale acted willingly or intentionally will provide Mathis the infringed damages and profit. The owners of intellectual properties should raise the complaints to the state or federal laws, which protect them to recover damage and infringed profit in their business.
The Damages That Mathis Suffered Because Of Normandale’s Conduct
The intellectual property owner suffered different damages, which include the loss of profit, damage of the business reputation since Normandale is using its trademark to sell low quality products, which can cause negative attitude towards Mathis products. The Mathis business has lost confidence of the employees since it might not manage to meet the employee’s obligation on time due to low revenue generated (Dumberry, 2012). It has led to poor internal management of the company operation because of exposure of its secrets to the competitors. Another damage is the risk of losing the market because of loss of confidence even by other retailers since the company’s internal information is accessible to the competitors, which can make its outlet product to be doubted by the customers.
The Differing Views on the Social Responsibility of Corporations like Normandale
The corporate social responsibility is significant because the business system is the instrument designed to distribute and produce services and goods. The Normandale case shows that social responsibility of the business is assumed that it has not provided value to the business and the realization of maximum profit will make it survive. The corporations can use social responsibility as a source of profit by complying with the government imposed rules to check illegal practices. The market system is providing the rules that require the business entities and the owners to practice the policing system and the profit to enhance efficiency and incentives. The social responsibility requires that every business entity should adhere to business ethics and avoid self-interest for the improvement of the market and industry. Profit maximization in the business does not take into consideration some factors such as health economy and growth of the business. The social responsibility contributes to the healthy growth of the business and economy through provision of employment opportunities and enhancing adequate income to the society. Normandale should exercise social responsibility to enable the retailer to earn the profit in the retail business and avoid engaging in illegal activities of counterfeit. Practicing social responsibility will enable the retailer to fascinate more customers and make more transactions, which can escalate profit of the business.
The Ethical Code of Conduct That Should Be Implemented By Normandale to Prevent Similar Incidents In The Future
The Normandale should ensure they practice integrity in conducting business to enable them to undertake the right activity in the business. Integrity will promote the business reputation and reflect the values of the business and its brand to the consumers. Normandale should not disclose non-public information of the business to those who are outside the company unless disclosure is necessary for the business purpose. The retailer should take suitable steps in executing the confidentiality agreement of the business to avoid misuse of the business information. The retailer should exercise honest deals to avoid negative effect to the owner and the business (Bergh and Deschoolmeester, 2010). The trader should ensure that it designed the code of business to encourage consistency of deals within and outside the business to avoid illegal acts inside the business deeds. The owners of Normandale should adopt written code of conduct that would enable them to formally acknowledge their motive of carrying out the business activities in an ethical manner. Business code of conduct enabled the operators to increase the public confidence to the business and to promote internal activities through the provision of consistent standard of both legal and ethical conduct. The ethical code of conduct enables the managers of the entity to respond to the issues, which arise due to illegal or unethical behaviours in the operation of the entity activities.
The Owners of Normandale Personal Liability to Mathis for Damages
The owners of Normandale have personal liability to Mathis because they carried out the illegal act knowingly or intentionally, which lead to intentional fraud and caused harm to the Mathis business. The Mathis has lost confidence of the business employees because everyone is afraid that it can expose the secret information to the competitors. The Mathis has lost moral in the production of clothing since Mathis considers the activity to be simple and easily duplicated by anyone who has intention to destruction of the production of clothes.
The Owners of Normandale Personal Criminal Liability for Their Conduct and That of the Business
Yes, they have personal criminal liability for both, the occupation and their private conduct. It is because the unlawful obligation provides the postulation for both the corporeal and cerebral component to the offence, which was violated by the owners of Normandale. The owners committed a theft, which contained the elements such as appropriating, which is physical element and having dishonest attitude as the mental element. The mental element was committed by the Normandale by taking the photos and samples of Mathis clothes line and sending it to the competitor Countess Lori-Ann (CLA) with the intention of reproducing the same line of product. The physical element was undertaken when the CLA reproduced the Mathis clothing line and sold it to Normandale at a low price to enable the increase of the profit. It is illegal to provide information of any business to competitors and other parties. It can lead to criminal liability anyone who is trading non-publication information or providing materials of non-public information to other parties to enable them to trade. They commit illegal activity, which render the retailer business and the owner’s negative consequences. These include the prohibition of continuing the same line of business and paying damages caused by their illegal activities to the Mathis business.
It is significant for all businesspersons to be driven by the moral leadership to enable them to practice code of ethics as they undertake their activities such as the customers, shareholders and employees request. The owners and employees of Normandale will lose employment since sales might reduce and will not meet the employee’s payment. The owners of businesses should be conversant with the basic understanding of procedural and criminal laws because incompliance to it causes negative impact to both business entity and the owners. The Normandale should exercise honesty in carrying out the retail activities to avoid producing negative impact on the owner of the intellectual property. The Normandale activities might be prohibited because of violation of business laws by committing illegal activities. The trader should ensure it designed the code of business to encourage consistency of deals within and outside the business to avoid illegal acts inside the business deeds.