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:

Occupational Groups

Durkheim’s mechanism to promote the integration of workers.

Human Resource Management

An area of research dedicated to helping workers integrate into an organization and identify with its goals.

Moral Obligations

Duties or commitments that arise not from law but from principles of ethics and morality.

Restatement

A rephrasing or recompilation of legal principles in a specific area aiming to simplify and clarify the law without having binding authority.