Presentation on theme: "Ethics: Dialing for Dollars (p. 260) Group A: Allyson Brito Anne-Katrin Strupp Jennifer Upadhyay Mariyam Hussain Noha Mahmoud Tatiana Castillo MGS*3040*03."— Presentation transcript:
Ethics: Dialing for Dollars (p. 260) Group A: Allyson Brito Anne-Katrin Strupp Jennifer Upadhyay Mariyam Hussain Noha Mahmoud Tatiana Castillo MGS*3040*03
1. Is it ethical for you to write the agreeing to take the product back? If that comes to light later, what do you think your boss will say? It is not ethical to circumvent any company policies. Accounting would not book the order. Your boss did not authorize these actions. This situation will create future trust issues for your boss.
2. Is it ethical for you to offer the “advertising” discount? What effect does that discount have on your company’s balance sheet? It is not ethical. You should have gotten approval from your supervisor to give that reimbursement next quarter. May keep Company B for now, but what about the future? This quarter, the balance sheet will reflect high number of cash assets since discount has not been given yet => taken out next quarter.
3. Is it ethical for you to ship to the fictitious company? Is it legal? It is not ethical. Involves: – Policy violations – Jeopardizing company’s name and reputation – Implicating other employees (accounting, shipping warehouse, etc.) – Fraud!!!
4. Describe the impact of your activities on next quarter’s inventories. Inventory will be higher than expected caused by returns. More production will be scheduled. There is a false high demand. Cycle of sales problems will continue.
5. If you were the COO of this company, would you instruct manufacturing to ignore sales increases? You must take sales hikes into consideration. Do not rely solely on the 20% discount as a long-term strategy to keep sales coming in.
6. What would you do if you were the salesperson in this situation? Cancel the fake order to brother-in-law. Ask for guidance from supervisor and contracts team. Develop language to stipulate in contract that would allow partial returns. The disciplinary consequences would outweigh the quick-fix from fake sales.
7. What, in your opinion, should this company do? Implement more aggressive sales training. Training should be comprehensive of the sensitivity to the economy. Provide incentive programs to those who reach their quarterly goals. Have monthly reviews to assess progress in goals and to discuss better techniques.