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An Ethical Dilemma - Essay Example

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[Your full name] [Instructor’s full name] December 09, 2011 An Ethical Dilemma Business professionals need to have an understanding of business ethics because ethics play a considerable role in making a business successful. Although ethics are relevant at individual level but its value becomes more critical when the managers are doing something wrong at the managerial level…
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An Ethical Dilemma
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"An Ethical Dilemma"

Download file to see previous pages It was a new company in the field of product manufacturing. Therefore, in order to draw more customers towards the newly manufactured products, the company used to deliver gifts and discounts to the customers. Such strategies used to work well for the company, as they were able to attract a large number of customers. The reason was not only the discounts and gifts that the company offered to the customers but also the quality of the products manufactured by the company was very high. The ethical dilemma, which I am going to relate, occurred when the operation manager of the company left the job due to some personal reasons and the company hired a new manager, James Ferrel. The new manager had a different and less professional approach towards the business. An ethical dilemma occurred when he used the strategy of buy one get one free for a newly manufactured product of the company. The scheme was that if a customer buys a LCD TV from the company, the company would provide the customer with a free DVD player of the same quality. The scheme proved successful in the start as a large number of customers opted to buy the company’s products. ...
He told me about the situation. He told me that the new manager gives importance to profits more than quality and for that, he planned to attract customers by providing them with a free product. However, the strategy resulted in losing the customers’ confidence in the company’s products. The ethical issue involved in this example was that the company should have provided the customers with excellent quality not only in the product that intended to buy but also in the product that the company used to provide them as a gift. The company went against business ethics, which not only resulted in loss of customers’ confidence but also affected the image of the company in the minds of the customers. The company faced huge criticism, which ultimately led to dismissal of my friend and his manager. According to Ferrell and Gresham, ethical decision making in business is a key towards a business success. Had I been at the post of my friend, I would have informed the top management about the manager’s approach towards business. I would have also asked the manager to use some other way to increase the company’s sales instead of cheating the customers by providing them with a low quality product. “Ethics are standards of conduct” (Smith). I would have used an ethical decision making model to tackle the situation. I would have proved my words of delivering the free item of the same quality. I believe that the Trevino and Nelson's eight-step model to ethical decision making would have helped me in taking suitable decisions. Being in the situation of my friend, I would have gathered the facts at first in order to know the exact position of company in the market. Next, I would have defined the ...Download file to see next pagesRead More
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