Question

EJ Gallo is an ethical public company whose goal is to maximize shareholders value. The strategies employed by senior management exemplifies keen marketing insight and delivers on their mission."

However, are they unethical by selling cheap wine with high level of alcohol content within the more impoverished areas, considered skid row.

Break down a response to the discussion statement by responding to the following statement:

Answer 1

If the Company is a brewery Organization that manufactures wine or simply an Organization that is engaged in procuring cheap wine and selling it to the consumers, then a clear disclaimer to such content of the cheap wine, should be made before the Public. Failing in intimating the Public about the high content of alcohol in their wine, shall only imply that the Company purposely attempted in deceiving its consumers and that, shall certainly amount it to be unethical. Maximizing shareholder’s value at the cost of their health or by concealing material facts about their products, shall amount to wrong positioning of their products in the market.

Therefore, it is to be ascertained whether or not the content of the alcohol is clarified to the Public. Also, in general, the consumers in impoverished area would prefer to purchase a low-cost wine in desperation, in spite of being in knowledge of such high alcoholic content in the wine. In such a case, it could also indicate that the Company is purposed trying to cash on the ‘weakness’ of its consumers in those areas, thereby making the act unethical as well.