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BUSINESS ETHICS CASE STUDY (MAYUY SHRIKHANDE ROLL NO. 51) A REAL LIFE SITUATION Frank Gracia was just starting out as a salesman with Acme corporation. Acme s corporate culture was top down, or hierarchical. Because of the competitive nature of medical supplies industry, few mistakes were tolerated. Otis hillman was a buyer for Thermocare, a national hospital chain. Franks first meeting with Otis was a success, resulting in a $500,000 contract. This sales represented a significant increase for A
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  BUSINESS ETHICS CASE STUDY (MAYUY SHRIKHANDE ROLL NO. 51) A REAL LIFE SITUATION Frank Gracia was just starting out as a salesman with Acme corporation. Acmes corporate culture wastop down, or hierarchical. Because of the competitive nature of medical supplies industry, few mistakeswere tolerated. Otis hillman was a buyer for Thermocare, a national hospital chain. Franks first meetingwith Otis was a success, resulting in a $500,000 contract. This sales represented a significant increasefor Acme and an additional $1,000 bonus for Frank.Some months later Frank called on Thermocare, seeking to increase the contract by $500,000. Otis, Ithink youll need the additional inventory. It looks as if you didnt have enough at the end of lastquarter, said Frank. you may be right. Business has picked up. May be its because of your product, butthen again , may be not. Its still not clear to me whether Acme is best for us. Speaking of which, I heardthat you have a season tickets to the cubs! replied Otis. Ive always wanted to see Sammy sosa hit ahomer! Frank thaught for a moment and said, Otis, I know that part of your increases are due to ourquality products. How about we discuss this over a ball game? well, ok, Otis agreed. By the seventhinning stretch, Frank had convinced Otis that the additional inventory was needed and offer to giveThermocare a pair of season tickets. When Franks boss, Amber, heard of the sale, she was very pleased.Frank, this is great. Weve been trying to get Thermocares business for a long time. You seem to haveconnected with there buyer. As a result of Thermocare account, Frank received another large bonuscheck and a letter of achievement from the vice president of marketing.Two quarters later Frank had become one of the top producer in the division. At the beginning of thequarter Frank had run the numbers on Thermocares account and found that business was booming.The numbers showed that Otiss business could probably handle an additional $750,000 worth of goodswithout hurting on assets. As Frank went over the figures with Otis, Otiss response was, you know,Frank Ive really enjoyed the season tickets, but this is a big increase. As the conversation meandered,Frank soon found out that Otis and his wife never been too Cancun, Mexico. Frank had never been in asituation like this before, so he excused himself in to another room and called Amber about what he wasthinking of doing. are you kidding! responded Amber. Why are you even calling me on this? Ill findthe money somewhere money to pay for it. is this OK with Acme? asked Frank. You let me worryabout that, Amber told him. When Frank suggested that Otis and his wife be his guest in Cancun, theconversation seemed to go smoothly. In Cancun, Otis decided to purchase the additional goods, forwhich Frank received another bonus and another positive letter from headquarter.Some time later Amber announce to her division that they would be taking all of there best clients to LasVegas for a thank you party. One of those invited was Thermocare. When they arrived, Amber give eachperson $500 and said, I want you to know that Acme is very grateful for the business that you haveprovided us. As a result of your understanding the qualitative differences of our products, we havedoubled our production facilities. This trip and every thing that goes with it for next few days is our small  way of saying thank you. Every one of you has your salesperson here. If there is anything that you need,please please let them know and well try to accommodate you. Have a good time!That night Otis had seen Frank at dinner and suggested to him that he was interested in attending anadult entertainment club. When Frank came to Amber about this, she said, is he asking you to gowith him? no, Amber, not me! well, then, if hes not asking you to go, I dont understand why youare talking to me. Didnt I say wed take care of their needs?  but what will Acme say if this gets out?asked Frank. dont worry ; it wont, said Amber. ANALYSIS    P OTENTIAL ETHICAL ISSUES y   Corporate culture and orgnisational hierarchy played an important role as they conversed ascorporate governance. y   Exchanging business by offering promotions. e.g.- season tickets to get more orders. y   Season tickets were not use.    ETHICS AS A P ART OF ORGNISATIONAL VALUES y   Looking at orgnisational values orgnisational structure plays an important role and each level of management has to take decision without harming the management. y   What frank did where he didnt inform abt season ticket to otis which was unethical and he didnot inform the boss.    Ethical issues of which frank should be aware y   Informing the amber about each and every work done by frank. y   Frank even didnt inform when it was revealed that otis did not use the season tickets. y   To capture more contracts he offered season tickets rather the contract should get on thebusiness.
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