Ethic case problem
American Products Corporation participates in a highlycompetitive industry. In order to meet this competition and achieveprofit goals, the company has chosen the decentralized form oforganization. Each manager of a decentralized investment center ismeasured on the basis of profit contribution, market penetration,and return on investment. Failure to meet the objectivesestablished by corporate management for these measures has not beenacceptable and usually has resulted in demotion or dismissal of aninvestment center manager.
An anonymous survey of managers in the company revealed that themanagers feel the pressure to compromise their personal ethicalstandards to achieve the corporate objectives. For example, atcertain plant locations there was pressure to reduce qualitycontrol to a level which could not assure that all unsafe productswould be rejected. Also, sales personnel were encouraged to usequestionable sales tactics to obtain orders, including gifts andother incentives to purchasing agents.
The chief executive officer is disturbed by the survey findings.In his opinion, such behavior cannot be condoned by the company. Heconcludes that the company should do something about thisproblem.
Please answers for below Questions. thank you
(a)
Who are the stakeholders (the affected parties) in thissituation?
(b)
Identify the ethical implications, conflicts, or dilemmas in theabove described situation.
(c)
What might the company do to reduce the pressures on managersand decrease the ethical conflicts?
(CMA adapted)
Ethic case problem
American Products Corporation participates in a highlycompetitive industry. In order to meet this competition and achieveprofit goals, the company has chosen the decentralized form oforganization. Each manager of a decentralized investment center ismeasured on the basis of profit contribution, market penetration,and return on investment. Failure to meet the objectivesestablished by corporate management for these measures has not beenacceptable and usually has resulted in demotion or dismissal of aninvestment center manager.
An anonymous survey of managers in the company revealed that themanagers feel the pressure to compromise their personal ethicalstandards to achieve the corporate objectives. For example, atcertain plant locations there was pressure to reduce qualitycontrol to a level which could not assure that all unsafe productswould be rejected. Also, sales personnel were encouraged to usequestionable sales tactics to obtain orders, including gifts andother incentives to purchasing agents.
The chief executive officer is disturbed by the survey findings.In his opinion, such behavior cannot be condoned by the company. Heconcludes that the company should do something about thisproblem.
Please answers for below Questions. thank you
(a) | Who are the stakeholders (the affected parties) in thissituation? |
(b) | Identify the ethical implications, conflicts, or dilemmas in theabove described situation. |
(c) | What might the company do to reduce the pressures on managersand decrease the ethical conflicts? (CMA adapted) |
