The Manager of a Profit Center of a Large Electronics

question 29

Essay

The manager of a profit center of a large electronics manufacturing 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.
Are these actions ethical? Why or why not?

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Definitions:

Standard Procedures

Established methods or protocols that prescribe how tasks should be performed, ensuring consistency, efficiency, and safety.

Outsiders

Individuals or groups that are not part of a specific social system, organization, or community, often viewed as not belonging to the dominant or central group.

Leader's Term

The period during which an individual holds the leadership position in an organization or team.

New Leader

An individual who has recently assumed a leadership position, bringing fresh perspectives or approaches to the role.