Keep In Mind That The Robots Are Defined In The Assignment

Keep In Mind That The Robots Are Defined In the Assignment As Autom

Keep in mind that “The Robots” are defined in the assignment as “automated machines, actual robots, computer hardware, software applications, etc.” The Humans (Episode 2) For The Humans that were not replaced by The Robots, the respite was short-lived. They soon discovered that there existed another group of The Humans that had joined forces with The Robots so as to destroy the profit margins of BoltonCorp. This newly discovered group has been known by many names, but the most ubiquitous name is customers. To the chagrin of The Humans Known As Employees, The Humans Known As Customers are just as necessary for the success of BoltonCorp, and their demands must be met. The Humans Known As Customers have two identifying features that attempt to destroy the profit margins of any firm that crosses their path.

First of all, they want the price that they must pay for the goods or services to be as close to zero as possible. Second, they want the value that they receive from the goods or services to be as high as possible. To put this in our Value-Price-Cost (V-P-C) framework, they want to maximize the V-P gap and minimize the P-C gap. Given that all of BoltonCorp’s potential for profits is derived from the P-C gap, efforts to minimize it are alarming, to say the least. (As if this were not alarming enough, BoltonCorp has actually tasked some of The Humans Known As Employees to make every effort to attract MORE of The Humans Known As Customers! In an unbelievable turn of events, BoltonCorp has actually increased its costs through marketing and advertising expenses to create more interactions and engagements with those who want only to reduce the price!

Has BoltonCorp lost its mind? Does it even know that maximizing the P-C gap is critical to survival?!) Meanwhile, The Humans Known As Customers have created and leveraged The Robots Who Reduce Information Asymmetry (Web sites, apps, price comparison software, product reviews, etc.) as their primary weapon against the profit margins of BoltonCorp. Information asymmetry exists when the two parties involved in a transaction have different amounts and types of information. For example, BoltonCorp knows the exact cost to deliver their goods or services, but the price that the The Humans Known As Customers are willing to pay is unknown. Conversely, The Humans Known As Customers know the exact price that each of the goods or services is worth to them, but the true costs are unknown.

Both parties in each transaction desire the other side to be as uninformed as possible. Put another way, both sides are trying to maximize information asymmetry. You are the CEO of BoltonCorp, a multinational firm that operates in 27 countries. You are sure that you need The Humans Known As Customers to be satisfied or else you will go out of business. However, you prefer The Humans Known As Customers to have zero information about your costs.

Unfortunately, The Humans Known As Customers have joined forces with The Robots Who Reduce Information Asymmetry and have become much more informed. Some of the information they have curated is sourced from BoltonCorp itself through its participation in trade associations and competitive advertising campaigns and compliance with media outlets that evaluate products and services. BoltonCorp seems to be complicit in its own demise. Answer one or both of the following questions. Q1: Should you increase your efforts to hide information from The Humans Known As Customers? · If no, how will you explain your decision to the board of directors that were hired to monitor your firm and defend shareholder interests? · If yes, how will you explain your decision to the news media that report on your actions to the entire global society of The Humans Known As Customers? Q2: Should society make arrangements to alleviate problems caused by The Robots Who Reduce Information Asymmetry? · If yes, how would you go about getting laws passed that enhance the power of corporations in a global environment that seems to unanimously support the weakening of corporate power? · If no, how will you explain the impending global layoffs to The Humans Known As Employees?

Paper For Above instruction

The evolving landscape of corporate transparency and consumer information asymmetry presents complex ethical and strategic challenges for multinational companies like BoltonCorp. As the CEO facing heightened competition from informed consumers empowered by advanced technology and automation—collectively termed “Robots”—the decision to either conceal or reveal corporate information becomes a critical ethical and business dilemma. This paper explores whether BoltonCorp should intensify efforts to hide internal cost information from consumers and addresses the societal implications of information asymmetry management, including potential legal reforms and their broader consequences.

Should BoltonCorp Increase Its Efforts to Hide Information from Consumers?

The decision to obscure or disclose internal cost data to consumers hinges on multiple strategic and ethical considerations. On one side, transparency can build consumer trust, foster brand loyalty, and preempt regulatory scrutiny. Conversely, withholding information about costs could provide a competitive advantage, enabling BoltonCorp to set prices more flexibly and prevent consumers from leveraging detailed knowledge against the company’s profitability.

From an ethical standpoint, transparency aligns with principles of fair dealing and respect for consumer rights. As argued by Porter and Kramer (2011), transparency can serve as a foundation for creating shared value, enhancing both corporate sustainability and societal well-being. Conversely, excessive secrecy may be perceived as manipulative and erode consumer trust over the long term. Moreover, in an age where digital tools and online platforms vastly increase consumer access to information, attempts to conceal internal data risk public backlash, damaging BoltonCorp’s reputation.

Strategically, if BoltonCorp chooses to increase its information hiding, it must prepare to justify this to the board of directors. This justification could emphasize protecting proprietary knowledge and maintaining competitive advantage. It could be argued that full disclosure regarding costs may encourage aggressive price wars among competitors, ultimately harming industry stability and shareholder value.

From a societal perspective, if BoltonCorp emphasizes secrecy, it raises concerns about consumer rights and market transparency. To mitigate these concerns, the company could instead focus on selective transparency—sharing information that reassures consumers without compromising proprietary data. For example, disclosing ethical sourcing practices or environmental impact metrics strikes a balance between transparency and strategic confidentiality.

The Role of Society and Law in Managing Information Asymmetry

Society faces significant challenges from the power asymmetry between corporations and consumers, especially as technological innovations facilitate greater information sharing. There is a compelling argument for regulatory frameworks that protect consumer interests and ensure fair markets. Passing laws to enhance the power of corporations may involve reforming existing regulations to promote data transparency, protect consumer rights, and prevent deceptive practices.

Nevertheless, proponents of minimal regulation argue that market forces and consumer choice organically regulate information asymmetry. Countries such as the European Union have introduced strict data protection laws like the General Data Protection Regulation (GDPR) to empower consumers and regulate corporate use of data (Voigt & Von dem Bussche, 2017). Such laws enhance consumer autonomy and limit corporate overreach but must be designed carefully to avoid stifling innovation or imposing excessive compliance costs on firms.

In a global environment that appears to favor weakening corporate power, efforts to legislate against information asymmetry must therefore navigate political and economic resistance. To achieve this, coalitions of consumer rights advocates, industry stakeholders, and policymakers could collaborate to promote balanced regulations that incentivize transparency without undermining corporate competitiveness.

Furthermore, societal efforts could include promoting digital literacy, supporting consumer advocacy groups, and fostering public awareness campaigns about the importance of informed consumer decision-making.

Conclusion

Balancing transparency and strategic confidentiality is a complex but vital decision for BoltonCorp. While increased secrecy might preserve short-term profits, it risks long-term reputational damage and erosion of consumer trust. Conversely, transparency can foster loyalty and reduce regulatory risks but may expose the company to greater competitive pressures. Societal intervention through balanced regulation and consumer empowerment initiatives plays a crucial role in mitigating information asymmetry problems. An optimal approach involves strategic transparency combined with ethical considerations that prioritize consumer rights while safeguarding corporate interests, ensuring sustainable success in an increasingly information-driven world.

References

• Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62-77.
• Voigt, P., & Von dem Bussche, A. (2017). The EU General Data Protection Regulation (GDPR). Springer.
• Shapiro, C. (1983). Premiums for high quality products as returns to reputation. The Quarterly Journal of Economics, 98(4), 659-679.
• Lamberti, L., Noci, G., & Cova, B. (2004). Strategic clients and the reduction of perceived risk in business services. International Journal of Service Industry Management, 15(2), 174-189.
• Kaplan, R. S., & Norton, D. P. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business School Press.
• Gosiewska, A., & Pillutla, M. (2017). Consumer perceptions of transparency and trust in AI systems. Journal of Business Ethics, 146(2), 281–294.
• Montgomery, C. A., & Porter, M. E. (1985). Strategic Aim for Competitive Advantage in Regulatory Environments. Harvard Business Review, 63(4), 123-131.
• Bhattacharya, C. B., & Korschun, D. (2008). Stakeholder marketing: Beyond the four Ps and the customer. Journal of Public Policy & Marketing, 27(1), 5-13.
• Bauman, Z. (2013). Liquid Surveillance: A Conversation. Cambridge University Press.
• Cartwright, S., & Wang, Z. (2020). Digital ethics and corporate responsibility: Trust and transparency in the age of AI. Business & Society, 59(7), 1285-1305.