Answered: What are the ethical problems mentioned…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Question

Case 1:Ethics vs.Profit A large American company participates in a highly competitive industry.To meet the competition and achieve profit goals,the company has chosen the decentralized form of organization.Each manager of a decentralized center is measured on the basis of profit contribution,market penetration,and return on investment.Failure to meet the objectives established by corporate management for these measure is not accepted and usually results in demotion or dismissal of a center manager An anonymous survey of managers in the company revealed that they felt pressured to compromise their personal ethical standards to achieve corporate objectives.For example,certain plant locations felt the pressure to reduce quality control to a level that could not ensure that all unsafe products would be rejected.Also,sales personnel were encouraged to use questionable sales tactics to obtain orders including offering gifts and other incentives to purchasing agents. The chief executive officer is disturbed by the survey findings.In his opinion,the company cannot condone such behavior.He concludes that the company should do something about this problem. Questions: 1.What are the ethical problems mentioned in this particular case and what are the probable causes of these problems? 2.Is it all right to do something illegal or unethical to maintain the company's image and profitability? 3.If you are the CEO of the company's,what would you do and why?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.

Similar questions