Acme Title Pawn
Acme Title Pawn
Group: KPSN Consultants
Overview
Summary of case
Ethical issues present in the case
Discuss dilemma faced by decision makers in the case
Application of Ethical theories
1. Utilitarianism
2. Universalism
3. Ethical Relativism
Recommendations
References
Summary
Acme Title Pawn was in the business of providing loans to a target market consisting of mostly high risk customers, example, gamblers, persons with little or no credit history and those with poor credit history, predominantly from the minority groups such as African American (mostly migrants) and Hispanic communities (low income earners).
High staff turnover despite attractive compensation packages.
In sync with the title loan industry, Acme presents itself as a ‘headache-free’ business simply because they catered to persons having challenges obtaining financial help with the likes of banks and other reputable lending institutions.
To obtain a loan, customers were asked to simply present a motor vehicle title that would be used as security. Due to the risks involved, loans were capped at a maximum of fifty percent (50%) of the blue book value of the vehicle.
Acme Pawn operations were essentially in States which had legislation allowing at least 22% interest rate to be charged as the company charged twenty five (25%) interest rate to its customers. The company would pull out of states if the legislators changed this policy to lower interest rates.
The Company believed in adequately compensating its staff hence high salaries were paid, yet there was a grave concern regarding the high staff turn-over experienced.
The Company had its share of challenges in how it conducted its business affairs. How it viewed its obligations to customers and its role as an “ethical corporate company”.
Joe Scruples, a father and husband, is a current employee of Acme Title Pawn and has had his fair share of employment challenges throughout his working life.
Group: KPSN Consultants
Overview
Summary of case
Ethical issues present in the case
Discuss dilemma faced by decision makers in the case
Application of Ethical theories
1. Utilitarianism
2. Universalism
3. Ethical Relativism
Recommendations
References
Summary
Acme Title Pawn was in the business of providing loans to a target market consisting of mostly high risk customers, example, gamblers, persons with little or no credit history and those with poor credit history, predominantly from the minority groups such as African American (mostly migrants) and Hispanic communities (low income earners).
High staff turnover despite attractive compensation packages.
In sync with the title loan industry, Acme presents itself as a ‘headache-free’ business simply because they catered to persons having challenges obtaining financial help with the likes of banks and other reputable lending institutions.
To obtain a loan, customers were asked to simply present a motor vehicle title that would be used as security. Due to the risks involved, loans were capped at a maximum of fifty percent (50%) of the blue book value of the vehicle.
Acme Pawn operations were essentially in States which had legislation allowing at least 22% interest rate to be charged as the company charged twenty five (25%) interest rate to its customers. The company would pull out of states if the legislators changed this policy to lower interest rates.
The Company believed in adequately compensating its staff hence high salaries were paid, yet there was a grave concern regarding the high staff turn-over experienced.
The Company had its share of challenges in how it conducted its business affairs. How it viewed its obligations to customers and its role as an “ethical corporate company”.
Joe Scruples, a father and husband, is a current employee of Acme Title Pawn and has had his fair share of employment challenges throughout his working life.
References: Boatright, J.R. (2009). Ethics And The Conduct Of Business. Upper Saddle River, NJ: Pearson Education, Inc Acme Title Pawn, Case Study Solution. (2011). Available from http://www.caseforest.com/case-study-Acme-Title-Pawn.aspx