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A Comparison of Two Companies
When two or more companies the produce and sell the same products, join together in order to control the price of their products, price fixing has then occurred. Archer Daniels Midland (ADM) is a company involved in the procuring, transporting, storing, processing, and merchandising agricultural commodities and products. The FBI conducted an investigation accusing them of fixing prices with its two Japanese competitors Kyowa Hakko and Ajinomoto, to control the price of lysine. Lysine is an amino acid used to stimulate animal muscle growth and a component of feed for hogs, poultry, and fish. If a company fixes prices, an ethical problem is then created.
The ethical conflict, which ADM faced, arose when they decided to work with the two Japanese companies to create artificially high prices on lysine. …
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