The Manager of a Business Unit of a Large Corporation

question 77

Essay

The manager of a business unit of a large corporation made some projections regarding sales and profits for the upcoming final quarter of the year. The managers' performance evaluation and compensation depended significantly on his ability to meet budget goals. The manager discovered that the final quarter would have to be a particularly good quarter in order to meet these goals. He decided to implement a sales program offering liberal payment terms in order to pull some sales that would normally occur next year into the current year. Customers accepting delivery in the fourth quarter would not have to pay the invoice for 140 days. Also, he sold some equipment that was not being used and realized a significant profit on the sale.
Required:
Are these actions ethical? Why or why not?

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Definitions:

Discovery

Occurs when something previously unrecognized or understood is found to have social or cultural applications.

Symbolic Interactionists

sociologists who focus on the symbolic meanings that individuals ascribe to objects, events, and behaviors in social interactions.

Native Culture

The traditional practices, beliefs, and ways of life inherent to the original inhabitants of a region or country.

Negotiated Social Interaction

Refers to the process through which individuals use social cues and norms to guide their interactions and reach mutual understanding or agreements.