BUSINESS ETHICS

PRATIK VIJAY SHAH

MMS 2 / DIV – A
#8149
 CASE STUDY # 1

• Rank electronics have secured trial orders

for their TV sets from America through
efforts of company’s MD Mr.Gautam.
• Mr. Sunil – Finance Director
• Mr. Tiwari – Purchase Director
Issues
• Companies inventory had become
lopsided.
• There is no money in their Bank account.
• Arranging finance for the new prestigious
order from America.
1.

• No, according me newly purchased inventory by

Mr. Tiwari was stocked for six years Production,
at the same time major components were in
stock only for a weeks production which has
made co’s inventory lopsided. Another major
concern was huge payment made by the co. to
supplier for that goods which are going to remain
for the next six years resulting in to liquidity crisis.
2.

• The problem is a serious which could damage

company’s reputation.
• Sunil should discuss these issue with MD and
inform him about the misconduct of Mr.Tiwari
and take necessary action.
• MD has to be more cautious while giving such
authorities to a person who is more interested in
personal gain rather than co’s reputation.
3.

• It was an irresponsible act by Mr.Tiwari who had

a tie up with one of their supplier.
• He certainly made money by unethical way.
• He should not be given such powers henceforth
which could seriously damage the company.
 CASE STUDY # 2

• Story so far:
• CEO is eager to doubles his profits in the
short span.
CEO bribed the engineer of a power co.
• Motive is to save on production cost by
showing less power consumption which
will help to double the sales and profits.
• Within the two year the scam surfaced and
the CEO of the co. was behind the bars.
 CASE STUDY # 4

– The distributor is trying to get more

quota of goods from the supplier.
– He tried to offer monetary incentives
unfortunately the officer here is a honest
person who believes in ethical practices.
– He tried to act over smart but could not get his
desired results out of his influence.
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