Read the following case from: Mitchell, C. (2009). A short course in internation
ID: 446960 • Letter: R
Question
Read the following case from:
Mitchell, C. (2009). A short course in international business ethics combining ethics and profits in global business (3rd ed.). Petaluma, CA: World Trade Press.
Please compose using a Word document of about 1 page (double-spaced, 12 point Arial or Times New Roman font). Please be sure to adhere to APA style.
Case One: The Super salesman
You are the marketing director in the Eastern European region for a large British based multinational manufacturer of consumer retail products. Competition from other multinationals, as well as from locally branded products, is particularly intense in home cleaners. You have a salesman in Romania who not only meets his monthly sales target of cleaners, but also exceeds them by a wide margin. It comes to your attention (from a competitor, no less) that this super salesman may be involved in some practices that are against your company’s basic ethics code. You know that these practices, like promising a small “rebate to the customer against the salesman’s commission, are common practice in Romania. What course of action would you take?
Fire the salesman. He is in clear violation of the company ethics code and should be dismissed.
Look the other way. After all, you know that his practices are acceptable in Romania, and besides, he is producing.
Explain to the salesman that your corporate ethics code and the company’s global ethical standards supersede those often followed locally and he needs to bring his practices in line with company standards, even if it will cost him and the company sales.
Explanation / Answer
Option 1: Firing the salesman may be not appropriate at this point of time. Firing could be a right answer if he worked for the company in its home country. In this case there is a kind of cultural insensitivity and lack understanding of the rules and regulations of the company and a kind of acceptance of the act in the country of operation. It is also showing an ignorance of how the real world operates in ethical gray areas. The punishment of firing without any explanation and warning appears too harsh at this point of time.
Option 2: Looking the other way is morally a dead end. Making profit and meeting the targets cannot be the only judgment criteria in the business world. Even if the practices are acceptable in Romania don’t make it ethical. If allowed to continue it could make managing the operation in Romania impossible. It could also have a negative impact on morale both at home and in the local country. Company should go as per its moral code of conduct and practices should be universal.
Option 3: Explain to the salesman that your corporate ethics code and the company’s global ethical standards supersede those often followed locally and he needs to bring his practices in line with company standards, even if it will cost him and the company sales is the best option. For a corporate ethics code to be effective and payoff on the bottom line it must be enforced and employees must be trained and encouraged to follow it. If this company is serious about its international ethics policy, it will take the time to educate and train overseas workforce the importance of it and how to use it. It must be made clear that high ethical standards are more important and valuable than the value of incremental sales made unethically. It is the company's responsibility to establish the global ethical policy and encourage and train it employees to work as per that. If any variation is there in the standard policy in that case also company have to take a call and have to correct it.
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