Challenges For Stakeholder Groups And Carolina Pad Essay

1261 Words Dec 2nd, 2015 6 Pages

The Dilemma:

The company Carolina Pad wanted to decrease costs by using alternative advertising methods like blogs which are cheaper than traditional advertising. The key issue occurred when April Whitlock, a marketing executive, was approached by bloggers who asked for cash payments ranging from $75 to $ 1,000 in return for reviews about Carolina Pad products.

Challenges for stakeholder groups and Carolina Pad:

Stakeholder groups that can be affected include:

1.Target customers (teenage girls): If the company decides to pay the bloggers, then mostly positive reviews will be written. This can cause customers to get one-sided reviews, and it also makes blogs an unreliable place to get transparent information about Carolina Pad products.

2.Stockholders: If Carolina Pad doesn 't pay bloggers, its profits will mostly likely decrease due to a lack of advertising since the company cannot afford more expensive advertisements. A decrease in profits will also decrease the rate of return investors make.

3.Employees: Employees are directly affected by the “tone at the top” or the examples set by executives like April Whitlock. If employees witness executives make unethical decisions, like essentially paying for good reviews, then they will be more inclined to make unethical decisions as well.

4. Bloggers: If Carolina Pad refuses to pay them, bloggers can potentially retaliate against the company by intentionally writing negative reviews. This can harm…

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