Perry Ackerman, a product manager for FruitFresh, is visiting with his wife Dee, a member of the Town Recycling Committee, outside the local grocery store. Perry is upset because his new product line is losing market share to FruitFresh's major competitor, Cainer. Dee mentions that Cainer's new slogan "Nature Knows Best" is a good one, but Perry explains Cainer is not being truthful because they are using artificial coloring in its juice. Dee recalls that Cainer has previously been in trouble for inappropriately advertising its packaging as biodegradable and comments that maybe someone will report them again. Dee then asks Perry about progress on FruitFresh's plan to use recycled packaging materials. Perry explains that it is a very difficult and expensive process, but that there is a project team meeting on Tuesday that should give them some answers. In the Tuesday meeting Perry tells the other employees on the team that people care about the environment and that they will spend their money to prove it. Lynn Samuels, the marketing director, agrees that the market exists and instructs Mike Stritch, from its advertising agency, to begin his presentation. Mike informs the group that the agency recommends building a campaign around recycled packaging. He goes on to explain that FruitFresh can make their cartons with better than 50 percent recycled products, the highest percentage that any company has been able to achieve, and suggests the slogan "FruitFresh. Good for you, good for your world." Lynn and the other employees like the idea, but Perry is concerned. Perry questions whether they would be misrepresenting its product by claiming that the container is recycled when only half of the packaging comes from recycled products. Defending his idea, Mike comments that Cainer, FruitFresh's competitor, would have no problem making such a claim. When Perry counters that Cainer might copy their campaign, Mike argues that the public may not believe them because of their previous record in the environmental area. Perry inquires why they do not publicize that Cainer is using artificial coloring in its "natural" juice. Mike does not think that this would have the same impact and stresses that they would have to be careful before they began making accusations. Lynn also stresses that FruitFresh has a sizable investment in this product line and explains that they cannot raise their prices enough to offset the increased manufacturing costs of going above 50 percent recycled material because of the tight market. She comments that she is interested in keeping plastics out of the waste stream, but that FruitFresh also needs to make a profit. Mike then assures Perry that he has done his research and that they have to determine what plastics are recycled in laminated products. Lynn reminds Perry that it is his decision since he is the brand manager. Perry contemplates his decision.¹² Questions

1. What are the main ethical issues, if any, in the FruitFresh case? Describe each ethical issue.

2. What are Perry's options?

3. How do the three levels of moral development relate to Perry's situation?

4. What would you do?