Finger Hut Strategy

1412 words 6 pages
“Business ethics is the application of ethical values to business behavior. It applies to any and all aspects of business conduct, from boardroom strategies and how companies treat their employees and suppliers to sales techniques and accounting practices. Ethics goes beyond the legal requirements for a company and is, therefore, about discretionary decisions and behavior guided by values. Business ethics is relevant both to the conduct of individuals and to the conduct of the organization as a whole.” With this statement can we say that Fingerhut’s price strategy is unethical? In order to answer this question we need to digest certain issues of “Fingerhut’s Price Strategy” case with the point of views of Roger Crisp “autonomy and creation …show more content…
Fingerhut had found a niche in which to function their business and make great profits out of it. Their niche was to offer specialized goods to the low-income customers. A part of our economy that was fast growing and every other company had ignored. Friedman would also say that Fingerhut was actually helping the low-income society by offering them ways to build credit. As stated in the case the low-income society had no credit at all, so they lived paycheck to paycheck, which made it impossible for their customers to save money and buy certain goods that they needed. Therefore Friedman would say that Fingerhut was doing a social responsible act by extending a credit line to the low-income class of our society. With that credit line Fingerhut’s customers were able to purchase those goods that they needed or desired without having to wait the time and go through the trouble of having to save money. So by the Fingerhut offering the first credit line to the low-income it help them built credit that would later help them purchase other greater necessities such as an automobile and a house. The price issue that is brought in this case, Friedman would look at it in the sense that it can justified for Fingerhut to charge more money because they are taking a great risk by offering

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