Anti-Trust Ethical Dilemma Scenarios in MBS Enterprise

Anti-Trust Ethical Dilemma Scenarios in MBS Enterprise

The Anti-Trust Act is an act of the United States Congress that provides for preserving competitive conditions in interstate commerce to protect trade and commerce between the states.  This act prohibits practices that restrain trade or create them unnecessarily. Due to the nature of a large corporation, it is easy to overlook that a lot goes on behind closed doors (Dahles et al., 2020). This is especially true with MBS Enterprise, a big name in the mortgage industry. The intricacies of antitrust law as the statute and how those violations can affect even those normally thought of as good citizens have been explored using two ethical dilemma scenarios in MBS enterprise.

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The first scenario is about a salesperson in MBS Enterprise. This individual was attempting to sell the company’s services to a client at a lower price than the market price so that he would attract as many customers as possible. The salesperson was aware of the market price and for the service, but, intentionally lowered it so as to attract the consumers purchase from the company (Harrington, 2018). The act is considered unethical and violates the antitrust law because it perpetrates unfair competition (The antitrust laws, 2017). Through strategic planning, this salesperson was able to, theoretically, offer the client just what they needed without including too many costly add-ons that were unnecessary for their business. However, the employee could accomplish his goal of selling the mortgage company’s services without including unethical practices that might have been detrimental to his position with MBS Enterprise.

Anti-Trust Ethical Dilemma Scenarios in MBS Enterprise

The second scenario is about a high-level employee in MBS Enterprise. This individual was in charge of overseeing the sales department of all the salespeople in his region. This individual’s unethical conduct is that he took advantage of his position to steal money from MBS Enterprise by manipulating sales numbers and sales leads. This led to a loss for the company, which would have been hard-pressed to prove any wrongdoing on the part of anyone who had access to all the financial information. This scenario is unethical because it violates statutes that are meant to protect American consumers from fraudulent practices of international companies to monopolize markets (Using antitrust law to address the market power of platform monopolies, 2020).

The ethical violations in both scenarios are not that different at their core. The difference between the two scenarios is that the salesperson did not have access to MBS Enterprise’s financial information, while the second employee did. However, both actions are violations of federal law. The first scenario is unethical because it takes corporate assets meant to be used for the greater good for personal gain.

 

References

Dahles, H., Verver, M., Khieng, S., Manders, I., & Schellens, N. (2020). Scaling up social enterprise: Predicament or prospect in a comparative perspective. Journal of Social Entrepreneurship11(3), 317-342. https://doi.org/10.1080/19420676.2019.1641136

Harrington, J. E. (2018). Anti-trust enforcement. The New Palgrave Dictionary of Economics, 357-362. https://doi.org/10.1057/978-1-349-95189-5_2804

The antitrust laws. (2017, December 14). Federal Trade Commission. https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/antitrust-laws

Using antitrust law to address the market power of platform monopolies. (2020, July 28). Center for American Progress. https://www.americanprogress.org/issues/economy/reports/2020/07/28/488201/using-antitrust-law-address-market-power-platform-monopolies/

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