A controversial topic usually revolving around the corporate world is ethics. The reason for this may be due to the fact that firms in North America are frequently committing unethical acts which usually hinder either the consumer or the firm itself. This posting is reflecting on a disreputable act committed by a dependable company. Cisco Systems is one of the most successful American born companies ranking number 60th in the Fortune 500 list for 2013 (CNN Money, 2013). However, they have recently been under scrutiny from the media and the public. According to an article on The Huffington Post Canada, John Chambers, the CEO of Cisco Systems, has doubled his earnings from $11.7 Million in 2012 to $21.05 Million this year. In depth examination of this rise in the executive’s pay reveals that “in August [Cisco] was cutting 4,000 jobs to reduce costs and refocus on growth areas.” (The Huffington Post, 2013). This statement exposes inquiries on Cisco’s intentions on “growth areas”. Does this mean the CEO’s earnings? The report proves to be extremely controversial since cutting thousands of jobs in order to improve one individual’s earnings can be considered as unethical and simply unreasonable. The company explained that these job cuts actually came from the current increase in competition from Juniper Networks Inc., Palo Alto Networks Inc., and Checkpoint Systems Inc., which have caused Cisco to decline in the network securities market in the past few years (The Huffington Post, 2013). However, to consumers and professionals alike, it may seem a little odd that a CEO’s income would increase due to a rise in competition from innovative rivals. Wouldn’t it be more sensible for it to decrease if the firm was performing poorly? A sensible concept for companies in The United States (especially companies in the top 100 of Fortune 500’s list) to realize would be that committing such seemingly unethical acts doesn’t just hinder their own reputation and competitive standing, but equally the economy of the nation.
Works Cited:
Reuters. “Cisco CEO John Chambers’ Pay Nearly Doubles To $21.05 Million.” The Huffington Post. TheHuffingtonPost.com, 30 Sept. 2013. Web. 02 Oct. 2013. <http://www.huffingtonpost.com/2013/09/30/john-chambers-salary_n_4019346.html?utm_hp_ref=canada-business>.
“Fortune 500 2013: Full List.” CNNMoney. Cable News Network, 2013. Web. 02 Oct. 2013. <http://money.cnn.com/magazines/fortune/fortune500/2013/full_list/>.
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