Description
Read "AL" and "THE HONDA AUCTION." For each incident, you must identify the pertinent facts, the ethical issue(s), all relevant stakeholders and determine how they could be impacted by the decision that will be made, identify and apply at least one principle for ethical reasoning, and then consider alternative courses of action and choose the best course of action based on stakeholder impacts and the outcome of the application of the ethical principle. Use A Framework for Ethical Decision Making or the Eight Steps to Ethical Decision Making (found in the Ethics Module) as a guide.
Your textbook defines stakeholders as an entity that is benefitted or burdened by the actions of a corporation or whose actions may benefit or burden the corporation. Some common examples of stakeholders would include customers, employees, suppliers, stockholders, and the community.
Businesses will almost always have multiple stakeholders, and many times their interests will conflict. This means that a business decision-maker will frequently have to make a decision in the face of competing claims from different stakeholders. The question of whose interests should be prioritized requires the exercise of judgment. This skill—examining competing claims and deciding which one is the strongest—is called evaluation. You will want to consider the power, urgency, and legitimacy that each stakeholder presents.
You should put yourselves in each stakeholder’s position—Why do they care about the outcome of the decision? How will they be affected? What outcome would they prefer? What are their arguments in support of their preferred outcome? You will want to consider the power, urgency, and legitimacy that each stakeholder presents. Two of the videos below will give you a brief review of stakeholder theory and give you an idea of what skills you will be expected to demonstrate when you complete this assignment. Additionally, writing mechanics and grammar are graded as part of this assignment. A video on improving mechanics in business writing is provided below to help refresh your memory.
https://sorrell.mediasite.com/mediasite/Play/9f2000caa3a3424099b80fe0e96aca2b1d
https://sorrell.mediasite.com/mediasite/Play/eb1759d6fd85447fa74eb099c25cbb5d1d
https://sorrell.mediasite.com/mediasite/Play/9fd4b218dd0946ef92d6e6739273355d1d
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Explanation & Answer
Attached.
Running Head: ETHICAL DECISION MAKING
Ethical Decision Making
Name of student
Professor’s name
Course title
Date
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2
ETHICAL DECISION MAKING
Al’s Case
The CEO’s decision not to have any action taken against the star sales rep for shirking
company policy will have negative consequences for the other sales reps and their customers
because their purchases will be delayed in favor of Al’s customers. They will also be
disadvantaged if they are uncomfortable offering higher than the authorized discounts, which
means customers will be more willing to work with Al than with them. The company might also
suffer if Al continuously asks customers to delay their payments so they can bill the sale in
another year. The dockworkers could also get in trouble for not following the company’s first
come first serve policy for delivering purchases. Though none of the things that Al did are
illegal, they do go against company policy, and Al does cheat the other sales reps by acting
unfairly. The CEOs choice involved picking between two bad alternatives. He could either have
the division manager or the sales manager reprimand Al and stop him from going around
company policy which would almost certainly lead to a decline in the amount of profits he made:
Al made almost double the number of sales than the sales rep who was in second place (Stein &
Stein, 1994). Or he could do nothing and allow Al to keep overriding company policy, which
would ensure that Al kept making phenomenal profits for his company.
The Al incident involved the CEO of a Midwestern manufacturing company while going
through recent performance reviews, finding out that one of the star sales reps who handle the
Walmart account for the company was going through some methods that sidelined company
policy to make the overwhelming number of sales he made. The division manager that the CEO
spoke with informed him that Al, the sales rep gave higher than the set discounts, socialized with
the loading dock workers to get his customer’s priority loading of trucks, which goes against the
first come first serve policy. Al had also requested that a customer delay paying for his purchase
ETHICAL DECISION MAKING
3
by a week, which would mean that his commission would be counted in the following year,
which would start off his year with a large sales commission. The purchasers’ accountant,
however, paid on time and wrote to Al’s manager, refusing the request for the delay of the
payment, which is why it was on the review. The division manager stuck up for Al, and the CEO
did not pursue the case any further. The stakeholders in the ‘Al’ incident are Al, a sales
representative, the CEO of a Midwestern manufacturing company who is the most important
stakeholder as he decides what happens in the company, customers who purchased goods from
the company; the customers are also important b...