Questions 1 and 4 Write a letter to the store requestin way to idenrity your scc

Question

Questions 1 and 4

Write a letter to the store requestin way to idenrity your sccounts so that this error dues not happen agan ETHICS CASE Wholesale Health Supply sels a variety of medical equipment and supplies When?new retailer is approved for credit, one of the criteria is that the re have been in business for at least six months. Good Earth Foods placed a with Wholsale Health Supply and requested credit rerms. Wholesale Heald faved a credit request form to Good Earth Foods, and the buyer at Good Earh faxed the completed form back to Wholesale Health Supply. Robin Sylvester manager at Wholesale Health Supply, saw the credit application and noticed Earth Foods had only been in business for two months. Thinking she might erder if Good Earth Foods wasn't extended credit, Robin authorized the shipme fgured by the time the credit department rejected the application, Good Earh would have received the order and the vice president would override the the se d the shipmes keep a new customer Robin was sure that everything would turn out al righ . Do you think Robin's decision to ship the order was unethical? Why 2 Whit would you have done if you were in Robin's position? 3. Wrie a memo from the credit department manager to Robin Sylvester explain irg the reasoning behind requiring a new credit customer to be in husiness hor least six months. 4. in small groups, discuss ways to prevent a situation like this fro:appening

Explanation / Answer

1 It is definitely unethical on the part of Robin Sylvester to authorise shipment to Good Earth , after being fully aware of the Company 's policy for extending credit ,that the latter company should have been in business for atleast 6 months. It is wrong on his part to have pre-supposed something out-of-turn & that violates company norms . 2. In Robin's position, I would have abided by the company rules & waited for the Credit department to decide matters on merit. 3.. The requirement of the six-month period is to study about the customer's credit-standing with others in the trade carrying on similar business his track-record in honouring payments on date his capacity or credit-worthiness to repay to study the quantum & time-period for which credit can be extended to study ,if a long-term association is possible with him. For all the above reasons, a new credit customer has to be scrutinised by the credit department & certfied for extension of credit.Also, the procedures take some minimum six months or more of a time. 4.. The company norms or standards should be handed down to all those who may be atleast remotely connected with a customer--so as to avoid situations like these. Authorisation procedures should be clearly laid-down as to after which procedure , the same can be done & by whom. Also, counter-checking the authorisation by more than one person , will discourage unilateral decisions such as these.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.