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Case study on Ethical issues

Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey. Becky has just started a new job as controller for Mueller Imports, a much larger dealer for the same car manufacturer. Demand for this particular make of car is exploding, and the manufacturer cannot produce enough to satisfy demand. The manufacturers 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. Beckys 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 salesperson, Becky learns that Mueller frequently gives Rolex watches to the manufacturers regional sales manager and other sales executives. Before talking to anyone about this, Becky decides to work through her ethical dilemma. Put yourself in Beckys place. Requirements: Answer the following: 1. What is the ethical issue 2. What are your options 3. What are the possible consequences 4. What should you do Total writing only needs to be at least 250 words. One academic source is required and must be cited in APA 6th edition. Reference page is needed.

Ethical issues

1. Bribing
Mueller’s is in the habit of giving Rolex watches to the manufacturer’s regional sales manager and other sales representatives. TheRolexwatches are given free of charge and without the approval and authorization of other senior officials of the company. The act passes as a bribe to the regional sales manager in return of more allocation of cars. Mueller also personally expenses the billing of jewelry in the company books which are non-allowable expenses against the company revenues. Both bribery and creative accounting are unethical acts under the accounting and managerial principles and a criminal offence under the statute (Beauchamp, Bowie & Arnold, 2004).
2. Option
As a professional, the only option under such a situation is to resign from the post of controller of Mueller Imports.
3. Consequences of bribing
Bribing is subject to disciplinary actions from both the government and professional regulatory bodies.
Under the statute, Mueller, the manufactures regional sales manager and the sales representatives should be charged to the courts of law for corruption and penalties, fines or imprisonment awarded to them.
The overseeing professional body of managers should seek to discipline the managers involved by withdrawing their practicing certificates and delisting them from being members of the body.
Bribery has a negative economic and social effect on people and business (Beauchamp, Bowie & Arnold, 2004). It lowerseconomic growth, discourages investment,support for economic aid and puts a heavy economic burden on the less piviledged.in the context, Shamalay Automobiles is a small struggling car dealer and has been marginalized in terms of number of cars awarded to it as it cannot bribe to the level of Mueller imports. The practice has resulted into relatively low profits for Shamalay Automobiles and staff turnover.
4. What to do
As a professional and conservative of ethical morality I have a number of alternatives in order to curb the issue.
Create awareness of the ethical morality and issues in transactions to both Mueller and the entire organization (Beauchamp, Bowie & Arnold, 2004).
In the event that Mueller does not rectify his actions, I will have to report the issue to the relevant authority.

Beauchamp, T. L., Bowie, N. E., & Arnold, D. G. (Eds.). (2004). Ethical theory and business.


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