RESOLVING ETHICAL BUSINESS CHALLENGES \"I\'ll try to work with you on this. Give
ID: 342533 • Letter: R
Question
RESOLVING ETHICAL BUSINESS CHALLENGES "I'll try to work with you on this. Give me a few days Mary a recent college graduate from Stanford University, works for JSYK Incorporated, a realty company that rep- resents clients interested in either buying or selling busi nesses. As a "business broker," Mary's job is to arrange tskirts of town, and I'll call you," said Mary As Reverend Smith left, George, the owner and CEO of JSYK, came into the office. "What did Reverend Smith want?" asked George it matches his needs perfectl Ma sales small building used for manufacturing sat idle a year. The s actually interested in Moby Dick, and I believe rs called it Moby Dick because no one could find a buyer for it; either the price was too high or lied. Then he noticed the building did no e match the bu ce. “So what's the problem? ens of potential buyers had come and gone. It did not help “You and I both know Ted will not come down on that the building was owned by Ted St. Clair, a 65-year-old the price." Mary quickly explained the situation, with George listening intently. After she was done, George utation for hoarding every last dime. Ted made Dickens's said, "Mary, this is what you are going to do. I want you Scrooge look saintly. While JSYK Incorporated told Ted to convince Ted that repairing those machines is impor- more than once he needed to lower the price if he wanted tant to the buyer. DO NOT tell him who it is. Tell Ted the buyer wants the machines, but the repair estimate he calculated is $150,000. Tell Ted you know you can get the buyer to buy if the down payment was reduced to $150,000 and the asking price to $950,000. Finally, tell Ted he would be making an additional $50,000 for not miser that lived in the town all his life. The man had a rep to sell the building, Ted always refused. One hot afternoon Reverend Smith, a retired min- ister, contacted JSYK and asked if he could look at the property. Because Mary was in the office it was given to her. While they inspected the building, the conversation came around to what Reverend Smith would do with the building. He had recently formed a nonprofit corporation to aid troubled youth and wanted to convert the build- r. Mary knew Reverend Smith nded his church. She knew o nd integrity as well as his decades of service having to do the repairs." “I don't know about this," said Mary. "It doesn't feel honest, and besides Reverend Smith has not approved the deal, nor do I believe he would want me to lie on his be me behalf George replied, "Mary, the Reverend is going to do omething good with that building. You and I both know ping him When Ma t more than this. We was seriously talking about the building and how it is purposes. As they talked, the Rev ld nd asked about the machinery still in the building. Some of the machines at the manufacturing plant were in poor condition and required an estimated $100,000 to repair. Reverend Smith had no use for them and would need Ted will n make the best de tte sible Mary still was not certain. Although Ted was a miser, it did not feel right to lie. Besides, she wondered what Ted would do after he found out the Reverend had no use for the machines them removed. er preliminary discussions, Mary said she wouldQUESTIONS | EXERCISES 1. How is top management suppo contact the owner. “Reverend, I believe the seller is asking for a $250,000 down payment on this $1,000,000 sa ethical or unethical behavio representative for both the buyer and seller and transparent information, what should Mary tell can't afford that much," replied the Reverend 2. Discuss the alternatives and duties Marv has as a “I've been saving donations for a number of years and I "If I may ask," asked Mary, “How are you going to "Well, I've spoken to some older church members, only have $150,000" pay the balance?" and they told me tha 3. If realtors have a code of ethics that requires truthful George, the owner of JSKY? ould make the down payment, This case is stri resemblance to real persons, et they would cover the rest." companies, or situations is coincidental.Explanation / Answer
1. Top management is supporting a culture of unethical behaviour because they are lying to their clients , bot the buyer and the seller. Later on, when they will get to know the truth they may file a case against JSKY. Top management should not support such type of culture as it force other employees to follow the same with their client.
2. Responsibilities of Mary towards buyer:
Responsibilities of Mary towards seller :
3. Mary should tell exact situtaion that Reverend does not need any machine, its of no use to them. And he will not eb able to pay the down payment , and Reverend is in talks with many other church members for fulfilling the payment of the building
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