Chapter 2 - E. & J. Gallo, the world’s largest winery, announced

Chapter 2

1. E. & J. Gallo, the world’s largest winery, announced that it would stop selling its Thunderbird and Night Train Express wines in the Tenderloin, the skid row of San Francisco, for six months. Gallo took the action after meeting with an activist group called Safe and Sober Streets, which has asked grocers to remove the high- alcohol wine from the district, where citizens say drunks create a menace. One retailer in the district said, “If I don’t sell this, I will have to close my doors and go home.” Discuss the actions of E. & J. Gallo and the dilemma of the retailers in the district. Be sure to discuss the type of philosophy each of them holds with respect to social responsibility and ethical dilemmas.

9. Heinz Ketchup holds 54% of the U.S. ketchup market, and nine of every 10 restaurants feature Heinz ketchup. However, Heinz has learned that many restaurant owners simply refill Heinz bottles with cheaper ketchup, thereby capitalizing on the Heinz name without the cost. One restaurant owner explains, “It’s just ketchup. The custom- ers don’t notice.” There are no specific health regulations that apply, and owners are not breaking the law by refill- ing the bottles. Do you think this practice is ethical?