Houston MKT 3336 – Case Ethics and Business

Houston MKT 3336 – Case Ethics and Business

Subject: Business    / Marketing
Question
This is a case analysis assignment, you should read the case first, and then answer the following questions (all of them) in
essay format. Must be no less than 800 words.
Case Ethics and Business:

John sells shipping supplies for a warehouse supply wholesaler in
Denver. He has been with Warehouse Supply for almost a year, hired
fresh out of Collegiate U with a degree in marketing. John says it is his
dream job. He always wanted to be in sales, and he loves the organized
chaos of a warehouse as trucks and freight move in and out. He has a
real understanding of warehousing, learned while he was working
summers and part time as an order picker in a club store warehouse. He
worked there until his junior year at Collegiate, when he had the
accident on Highway 17 that left him a paraplegic. After the accident, he
spent months in rehabilitation and had to take some time off from
school. Then, because he was in a wheelchair, he could not go back to
his job as order picker in the warehouse. He still got his marketing
degree, though. It just took him a little longer. “I really like sales,” John
says, “It gets me out and about, and I enjoy working with the customers.
I was afraid my wheelchair would put people off, and I’d be stuck
behind a desk for the rest of my life. I’d hate that. I’m thankful that I
have the accessible van and can drive my own route. I know I’m a little
slower than some of the guys, but I think I’ve earned their respect, and I
like the challenge. I don’t always make the numbers, but people need to
know that there is a lot more that a paraplegic can do than what he can’t
do.” Unfortunately, sales have been down for Warehouse Supply for the
last two quarters. When consumers buy less merchandise like toys, clothes, gadgets, etc., there are fewer shipments in and out of
warehouses and less demand for warehouse supplies. Like most other
sales organizations, Warehouse Supply compensates its sales staff with
commission and bonuses in addition to base salary. Besides the sales
staff, management-level employees also receive bonuses based on sales
numbers. When sales shrink, everybody feels the pinch. Albert is the
sales manager for John’s district. When Albert interviewed John for the
job, he was impressed with John’s knowledge of warehousing, his
enthusiasm for sales and his outgoing personality. He’d never hired
anyone in a wheelchair before, but he thought, “What the heck, I think
this guy can do the job, and we should give him a try.” John learned fast,
and once the customers got used to the idea of a guy in a wheelchair in
the warehouse, things seemed to be fine, although Albert had to admit
that John’s sales numbers were never outstanding. Most months, John’s
sales are at or near the bottom of the pack. “He’s just a little slower,”
Albert said. “By the time he gets that van parked and gets his chair in
and out, he just can’t get around to as many customers in a day as the
other guys. But he does all right, and he makes a lot of calls from the
office. Can’t say he’s not on top of his customers needs. He takes good
care of them.” With sales down, Albert is getting pressure from Frank
Bishoff, Warehouse Supply’s vice president of sales at the home office in
Phoenix, Ariz. Frank is always a little edgy when bonuses are due, but
this time he is really on Albert. He called again this morning. “Hey
Albert, what’s going on out there? All I see is inventory stacking up and
your sales numbers going down! I know everybody’s sliding a little in
this economy, but your second quarter numbers are terrible. You’ve got
to move some product, and move it now! I’m getting pressure from the
guys upstairs. You know that everybody’s bonus is riding on this, and
we’re nearly at the end of the quarter. I’ll be in Denver at the end of the
month. We’re taking a closer look at your numbers and your people.
You’d better tell anybody who’s not up to speed that it has got to change
—or they’re going to be gone. Whatever it takes, Albert, get those
numbers in now!”
Albert has three weeks before Frank comes to Denver. “Heck, if they’ll just take it easy until the next quarter, we’d be fine,” thinks Albert. “I
know our numbers are a little flat right now, but we’ll have big orders
next quarter, when Quality Retail buys for their anniversary sale. I just
wish we had those numbers now; then Frank and his cronies would leave
us alone. I think I’ll give John a call. Quality Retail is his account. If
he’d just write up their anniversary sale orders today and get them in the
system, we’d all be off the hook. Why not? Frank said whatever it takes.
We can always back the numbers out at the end of the quarter if need be,
and John can square up the account with Quality later. Besides, he might
just save his own job. Why should I take the heat alone? It’s time he
knew Frank has always thought it was a lousy idea to hire a guy in a
wheelchair. Maybe John does belong in a desk job.” Warehouse Supply’s
HR department is located at the home office in Phoenix, and Albert has
never had anything to do with HR. A representative from Phoenix comes
to Denver occasionally to do some training—usually sexual harassment
—and Albert knows there is an employee handbook, but he’s never read
it beyond the statement he signed concerning employment-at-will.
Considering the pressure he is under from Frank, he believes the focus
for sales at Warehouse Supply is on making the numbers and not much
else.
“There’s no harm in getting the orders in early,” Albert muses. “Besides,
we can always back the numbers out later if we need to. And this way
everyone gets their bonuses. Isn’t that what they really want anyway?”
Questions: a. 1. Is there an ethical issue here? If so, what is the issue and how should it be addressed? 2. From the perspective of Distributive Justice Theory discussed in the
lecture and recommended readings, (In here, you also need to explain
what is Distributive Justice Theory and apply to this case)
Which action produces a fair distribution of benefits and costs for all
stakeholders? b. How do you determine what is fair? Who decides? c. What action provides stakeholders with equal liberty and equal
opportunity? d. Explain your choices.