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Note information in case is time sensitive so some of the material may be outdated MOTOROLA CASE STUDY June 19 2002 INTRODUCTION Motorola began in 1928 as the Galvin Manufacturing Company First they produced radios and through the years they progressed to semiconductors computer microprocessors high capacity telephone systems and between 1980 to the 1990s Motorola became a world leader in cellular telephones and wireless communications Unfortunately 1996 through 1999 proved to be hard times for Motorola Innovations by rivals in wireless communication decreased the demand for semiconductors and pagers and the Asia crisis put stress on Motorola which led to reorganization in 1998 and reconstruction in 1999 Since companies creation Motorolas two key beliefs set the standard for its employees actions These beliefs are constant respect for people and uncompromising integrity The company also considered trust to be its competitive advantage As Motorola developed into a global company it still aimed to uphold its ethical principles However the company realized that its values were contradictory to how business is done abroad Motorola was committing business suicide by abiding to its policies in countries where bribery and other business practices that are considered illegal in the US were common and expected To combat the clash of ethics a group of retired Motorola officers were asked to look into the status of ethics understanding and compliance around the world They created the Motorola Ethics Renewal Process MERP As stated in the case study the chief purpose of MERP was to help Motorolians at all levels in all countries make ethically appropriate business decisions everyday and to get them to take ownership and accountability for Motorolas key beliefs and ethical values Local country and regional ethics committees allowed employees to openly discuss issues surrounding Motorolas key beliefs and the code of business conduct Despite Motorolas unrelenting attempts to become an international ethical company it is faces the problem of staying profitable and growing market share
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