Ethcis Case

ETHCIS CASE Scenario 1 1. What should Bryan do about the clock? Bryan should explain to his wife Nina that he cant take that clock. Its against his ethics. He could loose the job if he accept that clock and what he will do if his boss come to know about this. So Bryan should return the clock to its supplier. 2. What does the Institute of Supply Management (ISM) code of ethics say about accepting supplier favors and gifts? The ISM code of ethics strictly frowns upon accepting gifts or favors from potential suppliers. “People engaged in purchasing should not accept from any supplier or prospective supplier any money, gift, or favor that might influence, or be suspected of influencing, their buying decisions”. 1. Why do you think the supplier sent the clock to Bryan’s home and addressed to his wife? Supplier wanted to influence Bryan. Supplier knows Bryan wont accept the gift and his wife will accept the offer and will be more emotionally attached to the gift as she does not know code of ethics. That is reason he sent the gift to his home and not his office. 3. Does the mere act of sending the clock to Bryan mean that Mr. McEnroe is an unethical salesperson? I would say yes as Mr. McEnroe is giving bribe to Bryan. He is trying to do unethical activities. The act was already unethical but he took it even a step further towards being unethical by going to great links to cover his “trail”.

SCENARIO 2 Do you think the buyer at Sealgood Instruments, Troy Smyrna, is practicing un- ethical behavior? First, what is the term for this behavior, and defend why you think it is ethical or unethical behavior. Yes , Troy Smyrna is practicing un-ethical behavior as he is trying to get Lisa to engage in reciprocity. The only way Troy Smyrna will partner with Assurance Technologies, is if they only buy from Sealgood Instruments and use their equipment instead of a competitor. In case of

reciprocity, Supplier owns the company business and can manufacture less quality goods. It decreases the competition and increases the risk. What should Lisa do in this situation? Formulate a response. Lisa should not work with Sealgood Instrument as they are acting unethical. She should look for some other company. Incase she want to pursue business with Seal good she should find the area of risk and should address them in front of Sealgood company . SCENARIO 3 1. Is Ben Gibson acting legally? Is he acting ethically? Why or why not? Ben Gibson is acting legally as he is not committing complete fraud. However, he is acting unethically because he is manipulating the situation by requesting low bids from unqualified buyers for the sake of lowering the price from Southeastern Corrugated. 2.

As the Marketing Manager for Southeastern Corrugated what would you do upon receiving the request for quotation from Coastal Products? I would try to compromise with Costal Products and make them happy without being too low moreover I will request them if they could request bid only from qualified supplier. SCENARIO 4

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What does the Institute of Supply Management code of ethics say about financial conflicts of interest? When a buyer awards business to a supplier because the buyer, the buyer’s family, or relatives of the buyer have a direct financial interest in a supplier, this is considered a major unethical practice”. The ISM stresses the importance of making sure that a company avoids financial conflicts of interest at all cost. “Even though a conflict may not technically exist, supply management professionals must avoid the appearance of such a conflict” (Institute of Supply Management). They recommend setting guidelines to avoid and manage such possible conflicts. Most importantly they suggest that employers encourage employees upon hiring and thereafter to disclose any information that may pose a conflict of interest threat. 4. Ethical decisions that affect a buyer’s ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables. Organizational environment – Supplier selected by Dave if doesn’t deliver the product on time then it will hamper companies performance and if it get out that dave is acting unethically then it will again hamper company performance. Cultural environment- Dave is setting wrong cultural value in organization . Employee can go with unethical practice and that is ok for them.

Personal environment – Dave’s behavior based on his personal relationship with the supplier, his brother-in-law, is affecting Sharon’s ability to do her job. Shanon has to obey Dave’s ordre inorder to be at job. * Industry environment – Dave’s behavior effects the industry environment because his actions if found out by other suppliers may call attention to the whole industry and how others conduct business in this particular industry. 5. What should Sharon do in this situation? Shanon should talk to senior management regarding this or she can talk to HR and can discuss regarding what going on in purchasing department. She should not have to fear for her job and she should perform her duties with full confidence.