Question

> Ethical Issue 16- recently resigned from her position as controller for Shamalay Automo tive a small, struggling foreign car dealer in Upper Saddle River, New lersev. Becke has ist started a new job as controller for Mueller Imports, a much larger dealer for the came car manufacturer. Demand for this particular make of car is exploding, and the manufacturer cannot produce enough to satisfy demand. The manufacturer's regional sales managers are each given a certain number of cars. Each sales manager then decides how to divide the cars among the independently owned dealerships in the region. Because of high demand for these cars, dealerships all want to receive as many cars as they can from the regional sales manager. Becky's former employer, Shamalay Automotive, receives only about 25 cars each month. Consequently, Shamalay is not very profitable. Becky is surprised to learn that her new employer, Mueller Imports, receives more than 200 cars each month. Becky soon gets another surprise. Every couple of months, a local jeweler bills the dealer $5,000 for "miscellaneous services." Franz Mueller, the owner of the dealership, personally approves payment of these invoices, noting that each invoice is a "selling expense." From casual conversations with a sales- person, Becky learns that Mueller frequently gives Rolex watches to the manufacturer's regional sales manager and other sales executives. Before talking to anyone about this, Becky decides to work through her ethical dilemma. Put yourself in Becky's place. Requirements 1. What is the ethical issue? 2. What are your options? 3. What are the possible consequences? 4. What should you do?

Answer 1

1. What is the ethical issue:

The Rolex watch ' s deal, which the retailer called the sales price, is considered to be a bribe to the regional managers compelling them to purchase it alone. This is not an acceptable consumer way of doing business.

2. What are your options:

there are two options:

a. Resign from the organization.

b. Inform the management that the regions and the dealers should have good coordination and there must be a uniformity in providing cars. This will help in building an ethical business. There should be a well defined plan laid out.

3. What are the possible consequences:

At first, there would be retaliations in the change of the routine aspect but Becky must explain the same thing in a way that improves the relationship between the areas which the dealer appears to find.

4. What should you do?

This is a difficult situation, as you will potentially lose your job if you tell the employer of the illegal situation; however, it must be reported. For my own defense, I'd be asking for private legal advice. Then I'd begin to look for a new job. I am sure that most manufacturers have policies against sales people who take gifts from customers to prevent the appearance of what can be called as improper, on the advice of the council I would notify the manufacturer of that which I believe takes place. I would also inform the relevant civil authorities on the recommendation of the Council. With this in mind that my career will suffer permanently.