Aol – Lapse of Ethics
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The story involving AOL and Time Warner was all about their business and how their businesses would succeed when they merged. Both companies thought for sure that by merging their multimillion dollar companies it would be beneficial for owners, employees, and stock holders. After the merger AOL Time Warner found out this was the worst mistake both companies could make.
Corporate social responsibility is defined as, “the concern of businesses for the welfare of society as a whole.” (Bovee, Hill, Mescon, 2007, pg. 63). The CEO of AOL, Steve Case was more interested about becoming the best internet company and less worried about the welfare of the companys stockholders and employees. Even congress knew this would be a horrible idea to merge. Both companies were not afraid of what may happen as a whole. Time Warner and AOL both made unsuccessful promises in the digital era. This may have been avoided if both corporations were more optimistic about the outcome. They should have planned for the worse and not the best. Economies change, things may get worse in a blink of an eye. Always expect both outcomes before considering a major multibillion deal.
Business ethics pertain to everyone in a company. AOL and Time Warner did not apply ethics to any part of this merger. Mutually these companies should have communicated truthfully to its employees and stakeholders. Steve Case had made the worst judgment call wanting to merge both corporations. He wasnt competing fairly in his market, he was trying to monopolize in this industry. Ethically this could have been avoided by not merging and stayed as an internet company and not a global communications company.