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The Controller of One Division of IntroTel, a Large Diversified

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Essay

The controller of one division of IntroTel, a large diversified firm is compensated by salary plus bonus. The bonus is a significant part of total compensation and is based directly on the profits of the division. Thus, the controller has an incentive to find ways to increase profits, including the delay of discretionary expenses such as research and development, delay of maintenance and repair of manufacturing equipment, and delay of sales promotions.
Is finding ways to increase profits as described above unethical? Why or why not? Who is to blame, if anyone?


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Cultural Context

The environmental and social variables that influence the norms, behaviors, and practices of an individual or community.

Genetic Makeup

The unique combination of genes inherited from one's parents that determines various biological traits and characteristics.

Anthropologists

Scientists who study human societies, cultures, and their development.

Social Exchange

A theory that describes social behavior in terms of the exchange of resources, such as information, goods, or services, between individuals or groups.

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