Wholesome Snacks, Inc., the maker of a variety of cookies and crackers, has just created a new vitamin packed cookie. The new cookie has the potential to combat many of the health problems caused by malnutrition in children throughout poverty stricken areas of the world. To date, however, many of the larger developing markets have resisted opening distribution channels to Wholesome's products. Wholesome realizes that its new cookie could also help open the door for the company to sell its less nutritious products in these markets. Therefore, the company is offering the new cookie at a low cost to government relief programs in exchange for the long sought distribution channels. The company feels the deal is good for business, but the countries feel it is corporate bullying.
1. What do you think about Wholesome's idea for opening a new distribution channel? Is it ethical?
2. Does the AMA Statement of Ethics address this issue? Go to www.marketingpower.com and review the statement. Then, write a brief paragraph on what the AMA Statement of Ethics contains that relates to distribution channels in developing nations.