Resolving Ethical Business Challenges
As a new employee at Acme Corporation, Frank Garcia knew few mistakes were allowed. He had sold medical supplies to Thermocare. Thermocare was a company Acme had been trying to do business with for a while. Otis Hillman, buyer for Thermocare, was happy with the products supplied by Acme. When Frank wanted to sell additional items to the company, Otis would question whether Acme was the right company for supplying products and would outright hint that he wanted something in return for meeting with Frank and considering ongoing business opportunities with Acme. (For example, sporting event tickets and trips.).
Frank verified offerings to Otis with his boss, Amber. She was impressed with the amount of sales to Thermocare and vowed to do what needed to be done to keep the client happy. Amber stated the best clients and their salesperson were invited to Las Vegas as a “thank you”. This included Otis, who represented Thermocare and Frank from Acme. All were given $500 and told everything was covered by Acme.
Otis, out for his personal enjoyment, told Frank about going to an adult entertainment club. Frank was worried about the morality of the situation. His boss, Amber, assured him that word of it would not get out and Acme heads would not find out that their money was used to engage in this behavior, especially since Frank was not the one going to the club.
Ethical Issues faced by Acme Corporation
Acme could face many ethical issues in the business world and in the public eye. With a Las Vegas trip given to clients and select employees, it could give the wrong appearance of what is moral. Many individuals and businesses could see it as Acme condoning gambling, drinking, and illicit acts. Acme should reward clients and salespeople, but in more moral ways or at least set boundaries as to what the company will be responsible for. Acme’s competition may make it an issue of misconduct and responsibility on Acme’s behalf....
References: Ferrell, O., Fraedrich, J., & Ferrell, L. (2013). Business Ethics-Ethical Decision Making and
Cases (Ninth ed.). Mason, Ohio: Erin Joyner.
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