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Ethics Dialing for Dollars Group D. Summary. In an effort to come close to making quota you are put into a very difficult situation where ethics come into play. To get rid of inventory now in the current quarter you tell customers you will: Buy back any extra inventory in the next quarter
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Summary • In an effort to come close to making quota you are put into a very difficult situation where ethics come into play. • To get rid of inventory now in the current quarter you tell customers you will: • Buy back any extra inventory in the next quarter • You offer them a discount on the next purchase • Ultimately you could buy the inventory yourself setting it up in a fictitious company name in a family member’s account name with intentions of returning it after the quarter is over
Q1: Is it ethical to agree to take the product back?If your boss finds out what do you think he would say? • Ultimately it comes down to your own personal dealings and feelings. This is ethically wrong in my opinion and is just taking advantage of a fault in the system. Cheating the system and agreeing to take products back only delays the problem to a later date and covers your stats. • If your boss finds out almost certain termination is guaranteed. This shows your inappropriate behavior and inability to solve problems. You could now be perceived as a person who passes their work on to others.
Q2: Is it ethical to offer a discount? What effect does the discount have on the company’s balance sheet? • It is not only unethical to offer a discount but highly dangerous as it will actually cost the company money. Short term it solves the problem but future purchases show less profit and thus throws a company’s balance sheet off for future quarters and periods.
Q3: Is it ethical to ship to a fictitious company such as a family member? Is it Legal? • This is also unethical as is not only a cover for a current problem but also seems as though the employee as a personal hand and stake in the company aside from the business. This also involves an innocent bystander who could receive major repercussions. • No, this is not legal. Fictitious companies are considered illegal or rogue company’s. It is not only unethical but illegal to deal with them.
Q4: Describe the impact of these activities on next quarter’s inventories. • Just as mentioned about the balance sheet, inventory will be as it should be immediately after taking these actions. • Long term, your inventory will be excessive and your holding costs will be tremendous. Inventory could be twice as much and cost the company twice as much as previously expected.
Q5: If you were the COO of this company, would you instruct manufacturing to ignore the sale increase? • It depends on the situation. Unethical, yes but you have to make a judgment call. If you tell manufacturing to ignore the sales increase then you are in on the scam. That makes you just as liable then the salesperson making the fictitious company. If you can get off without telling them to ignore it then that is better, you do not know that there is a fake company buying your product.
Q6: What would you do if you were the salesperson in this situation? • What I would do would not be to make a fake company. I would explain to upper management that the economy is very bad and no one is buying right now. I would do that instead of making something up knowing that the problem will still be there when the next quarter comes around. I would suck it up take the hit now so it doesn’t get worse in the future.
Q7: What, in your opinion, should this company do? • The company should do exactly what was stated before. Explain to the VP of sales that numbers aren’t what they used to be. Don’t try to hide that the company isn’t meeting its quota. Be up front about it and don’t try to hide anything. As previously stayed if you let problems go or try to hide them in the future they will just be worse. If you can’t make the quota you can’t make it.
