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Many Bonus Plans Are Based Upon the Attainment of Some

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Essay

Many bonus plans are based upon the attainment of some specified short-term goal. For example, sales personnel at Metal Crafters are given a bonus of 5% of the amount by which their sales exceed $100,000. Sometimes the attainment of these goals is achieved by methods detrimental to the long-term needs of the company. Sales representative Sara Crown, for example, finds herself tempted to court certain customers that place large orders, even though she knows they may not be able to pay. She complains that the bonus system itself is unethical.
Required:
Is a bonus system like the one at Metal Crafters unethical? Explain.


Definitions:

Sick Role

A conceptual term in medical sociology that describes the social expectations and behavior associated with being ill, including the individual's exemption from normal social roles and responsibilities.

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Non-wage compensations provided to employees in addition to their salaries or wages, like health insurance, retirement plans, and paid leave.

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DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of officially recognized psychiatric disorders.

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