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.
Anne Frank was born on June 12, 1929. She was the second daughter of Otto and Edith Frank. Both of Annes parents were from respected German-Jewish families. Anne and her older sister Margot were raised in Germany in an atmosphere of tolerance. The Franks had friends of many faiths and nationalities. Otto Frank served honorably as an officer in the German army during World War I. However, the ...
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. This could lead to the loss of business for Acme. (Ferrell, Fraedrich, & Ferrell, 2013, p. 7).
Frank’s Ethical Issues Frank needs to be aware of ethical issues when dealing with Otis or any other client.
Offering trips and other entertainment options without prior approval could be seen as misuse of company resources or even bribery to get a potential client’s business or more business from an existing client. Frank needs to know that negative publicity can cost him his job and hurt Acme. Since Frank gets bonuses for sales, he can be accused of bribing clients to get their business so he gets a bonus. Frank needs to understand the business ethics and issues and know where to draw the line on what is right or wrong. (Ferrell, Fraedrich, & Ferrell, 2013, p. 9).
Advantages and Disadvantages of Frank’s Decisions
Frank’s decision to tell Amber about Otis wanting to go to an adult entertainment club was right. Since he voiced his concerns, it shows he has morals and values and wants to do right for Acme. The disadvantage to allowing Otis to go to the club without warning that Acme wasn’t responsible for it was that word can still get out and hurt Acme’s reputation. It could also cost Frank his job for not protecting the company reputation. If Frank mentioned that Otis was solely responsible for going to the club and Acme would have nothing to do with it, Otis could have thought bad of the business and gone to another supplier.
Otis knew the company was to cover the trip and all expenses and he was taking advantage of it. There should have been more trust and openness between Frank and Otis. Both should have discussed the matter and decided what was best for all involved. Is the profit Acme receiving from Thermocare worth the amount of business that could be lost with the negative publicity if it gets out that Acme funded a client’s night at an adult entertainment club? (Ferrell, Fraedrich, & Ferrell, 2013, p. 20-21).
The Importance of Ethics in Business Business is the professional economic activities constructed on the initiative and constant innovations, directed on the increase of the capital, reception of the profit which is used for expanded reproduction and qualitative perfection of the enterprise, satisfaction of own and public needs. The market is not just a place of sale and purchase of the goods, ...