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Ethical decision making conclusion
Ethical decision making conclusion
Ethical decision making conclusion
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Decision Case 2-5. The Expenditure Approval Process
Case Summary Roberto is the plant superintendent of a small manufacturing company that is owned by a large corporation. The corporation has a policy that any expenditure over $1,000 must be approved by the chief financial officer in the corporate headquarters. The approval process takes a minimum of three weeks. Roberto would like to order a new labeling machine that is expected to reduce costs and pay for itself in six months. The machine costs $2,200, but Roberto can buy the sales rep’s demo for $1,800. Roberto has asked the sales rep to send two separate bills for $900 each.
Case Questions
What would you do if you were the sales rep? As the sales rep, my job is to
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There is an approval process and certain amount that can be expensed for a reason. Leaders, managers, and employees need to understand what is happening in their company from a financial perspective and who can use that information to work and manage more effectively (Berman & Knight, 2013, p.17). If Roberto as an employee understood the company’s position then he may have been able to look for a new label maker under $1000 and get the expense approved quickly. If Roberto submits a request above $1000 the CFO will have to look at more financial data and ask questions to Roberto before he could make a …show more content…
This is not an ethical thing to do when the organization has a policy that should be followed. Decision making is a big part of what we do in business and our personal lives and we must keep ethics and our own morals in mind when making decisions. Having the right knowledge and foundation of decision making is important, there is a good path we can follow called “Making Ethical Decisions: A 7 Step path”. The 7 steps are: Stop and think, clarify goals, determine facts, develop options, consider consequences, choose, and monitor and modify (Making Ethical Decisions, 2002). I think by Roberto’s actions and these 7 steps Roberto could have done things differently to get the outcome he
Middleton Mutual is a large insurance company that is seeking innovation. The Chief Information Officer, Dennis Devereaux, and Vice President of Information Systems, Max Vargo, are trying to push for a new expert system to ease up the underwriting process of their company. The issue that arises in the company is that certain higher ups aren’t willing to fund this one million dollar project without proof of return. Within the next year, the company will be losing two underwriters. Devereaux has his hands full with trying to get the company’s financial approval.
Ans. 7 From my point of view I would have reported the scheme to senior management. The scheme would have proved very harmful for the whole company and the harm of the company is bad for each and every employee of the company. Many people may have lost their jobs due to this scheme.
In the second year of business at Golf Challenge Corporation the company is struggling. The cost of their inventory is rising, and they are in grave danger of losing their bank loan (their prime source of financing) due to not meeting the required financial ratios agreed and set forth by the bank at the time the loan was given. The owner comes up with a solution, and figures that instead of using Last in-First out (LIFO) the company can use First in-First Out inventory cost system (FIFO) and meet their required financial ratios set forth by the bank. Ultimately, Golf Challenge Corporation should not submit documents to the bank using FIFO as opposed to their previous system LIFO in order to meet the bank requirements
Business ethics focus on what constitutes something being right and wrong. In the world of business, ethical and moral principles are applied by companies and individuals in situations that arise in everyday activities in the workplace. Typically these principles are based on our personal values, and they ultimately determine the end results of our decision making process. We should remember that business ethics is not a different type of ethics, nor one that is solely used in the workplace. The ethical standards we use to guide our decisions in our personal lives should be equally applied to our corporations and workplace activities. With that being said, is it ethical to use the tactics that Philippe Kahn did to generate momentum for his business?
Deere & Company (Deere) has been experiencing a decrease in its profit margins for one of its aftermarket resale products, specifically the gatherer chain, over the past couple of years. Currently, the cost-price ratio is at 80% compared to last year’s 50%. The purchase cost for the gatherer chain has been steadily increasing, while the aftermarket price has been decreasing. Deere has been budgeting its price to match that of a major competitor, which has been causing the decrease. The company’s main supplier of its gatherer chain is Saunders Manufacturing, with which Deere has established a long term relationship. The owner of Saunders has a reputation of being a tough negotiator, and is someone who is known for not willing to share financial information about the company. However, the U.S. Department of Commerce has provided financial estimates in Saunders’ industry as follows: material spend, 42%; direct labor, 16%; indirect labor, 6%; Overhead, 20%. These percentages are helpful to Deere because they can be used in the negotiation process with Sanders. Since Sanders will not share any specific cost information, Deere is able to use these estimates as a way to justify Sanders reducing its prices. Using these estimates during the negotiations might also incentivize Sanders to provide accurate numbers for its specific manufacturing costs.
“Linen company A” cleans linens for local hotels and restaurants. The linen company has had a drastic increase in their amounts of work to the point that their labor force is insufficient. To hire more labor is feasible, but they would like to keep from doing this, allowing themselves to save money in the long run. They’re problem is lack of labor, and the want to maximize efficiency in the workplace.
Mike recently purchased a motorcycle for $4,000 but has had extensive problems starting the motor. In disgust at not being able to start the motorcycle, Mike shouts to his friends, "Any of you want to buy this thing for $20?" A contract will be formed if a friend gives Mike a twenty-dollar bill.
A company known as Apex Art was recently asked to prepare a bid on 500 pieces of framed artwork for a new hotel. If Apex Art wins the bid, then the benefits would lead directly to sales representative Jason Grant, whose income relies on commission. In other words, he would receive a large sum of money as a result of the winning bid. The cost accountant for Apex, Sonja Gomes, prepared the bid and calculated the total product costs of the framed artwork to be $121,000. Since the company policy states that the pricing must be at 125% of full cost, Gomes provides Grant a total amount of $151,200 to submit for the job. Grant notifies Gomes that at the price of $151,200, the company is incapable of winning the job. He confesses to Gomes that he had spent $500 of company funds to treat the hotel’s purchasing agent to a basketball playoff game where the purchasing agent revealed to him that a bid of $145,000 would win the job. At first, Grant had no intention of letting Gomes know of this information because he was sure that she would have developed a bid that would be below the amount that the purchasing agent told him about, $145,000. Therefore, he thoroughly explains to Gomes that if the company does not take advantage of the important information that the purchasing agent had revealed to him, then the $500 of company funds that he had spent would go to waste. Nevertheless, Apex Art would still generate some profit if it wins the bid at $145,000 because it is higher than the full cost of $121,000. In order to come to fair grounds, Gomes advises Grant to use cheaper materials for the frame, which will assist him in attaining a bid of $145,000. Since the artwork was pre- selected and thus cannot be altered, the total amount of cost redu...
We can use the principle of double effect to analyze this case. There are four criteria for an act to be ethical according to the principle of double effect (Garrett et al., 2001):
The proposed solution can convince on all ethical levels. First, the solution violates not relevant principles or standards of conduct. It would be even more positive when the public finds out about these activities, because it would then possibly give even more support and also other companies (e.g. Del Monte and Dole) would be forced to rethink. Second, in the long run Chiquita and its executives can establish itself as an honest business partner and have the basis for excellent organizational performance, because the actions can speak for themselves. Communication with all stakeholders could improve the outcome of the proposed solution. Third, all consequences of the proposed solution are positive. In the short term, the Colombian employees are preferred, but the long term all stakeholders benefit and the core values of the company are respected.
I believe that all of the budget categories are extremely important to the organization. First, I believe it would be best to start with the people because grooming someone’s skills and learning to benefit from someone’s talents may take a while. Additionally, we want the clients of our group to be the main focus and it is important for the community to change their mind about passing these wonderful people over. Supplies will always be important because no one can get through a meeting without pens or paper. Space will be vital because there must be a place to meet for our organization’s development. Later on I can see things like equipment and miscellaneous
Many managers and organisations make the mistake of assuming that what’s wrong is illegal and what’s legal is right and if it’s legal it must be ethical. Yet many ethical dilemmas present themselves before the decision makers where right and wrong can not be clearly identified. They involve conflict between interactive parts – “the individual against the organisation or the societ...
According to the Deontology method ethical behavior can be measured to an absolute set of standards. So, according to deontology the answer is almost a simple “yes” or “no.” This method is guided by morals. Therefore, any illegal action would not be approved of. The Kantian method is based around the principle of “What if everyone acted in the same way?” If every executive showed compassion towards the lower level employees, the employees may have made it out of this situation unscathed. The Utilitarianism method is consequence oriented. It is based on “The greatest happiness for the greatest number.” Again, there were more employees than executives. Making a couple times the amount that employees make, the executives could have spared
According to the scenario, Jacob and Krystal worked in an ad agency that started five years ago in Topeka, Kansas. The ad agency was barely making a profit and needed a large client, which led the agency to put in a bid for a city government contract. Due to Jacob’s son being sick, he was preoccupied with taking care of his son and left Krystal with most of the work. Krystal prepared the presentation and got with Jacob the day before the final meeting with the client. Krystal knew that Jacob has good speaking skills and they both decided that Jacob would do the presentation. Jacob’s presentation was a success and they successfully sealed the contract. The owners of the company were so impressed and gave Jacob a bonus check of $10,000. Jacob saw this opportunity where he could use the money for his son’s medical bills. However, he knew that Krystal did most of the work and deserved the bonus money. Jacob is disappointed and his situation has left him with a decision on what to do with the money. This case study will pinpoint Jacob’s ethical dilemma and what ethical action he should take. Also, the roles and responsibilities of an employee dealing with an ethical situation as well as the ways of an organization to maintain ethical practices in the workplace
This paper intends to define operations management and analyze an ethics decision made by operations managers in the workplace or in a known organization.