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ethiCS GUiDe Dialing for Dollars

In truth, you doubt the customer will spend the money have finally made quota. A week into the next quarter, your 301
on advertising. Instead, it will just take the credit and sit on a brother-in-law returns the merchandise.
bigger inventory. That will kill your sales to the company next Meanwhile, unknown to you, your company’s ERP sys-
quarter, but you’ll solve that problem then. tem is scheduling production. The program that creates the
Even with these additional orders, you’re still under production schedule reads the sales from your activities (and
quota. In desperation, you decide to sell product to a ficti- those of the other salespeople) and finds a sharp increase
tious company that you say is owned by your brother-in-law. in product demand. Accordingly, it generates a schedule
You set up a new account, and when accounting calls your that calls for substantial production increases and schedules
brother-in-law for a credit check, he cooperates with your workers for the production runs. The production system, in
scheme. You then sell $40,000 of product to the fictitious turn, schedules the material requirements with the inven-
company and ship the product to your brother-in-law’s ga- tory application, which increases raw materials purchases to
rage. Accounting books the revenue in the quarter, and you meet the increased production schedule.

DiSCUSSion QUeStionS

1. Consider the email you write that agrees to take the c. What effect does that discount have on your com-
product back. pany’s balance sheet?
a. Is your action ethical according to the categorical 3. Regarding your shipping to the fictitious company:
imperative (pages 56–57) perspective? a. Is your action ethical according to the categorical
b. Is your action ethical according to the utilitarian per- imperative perspective?
spective (pages 92–93)? b. Is your action ethical according to the utilitarian
c. If that email comes to light later, what do you think perspective?
your boss will say? c. Is your action legal?
2. Regarding your offer of the “advertising” discount: 4. Describe the effect of your activities on next quarter’s
a. Is your action ethical according to the categorical inventories.
imperative perspective? 5. Setting aside ethical and legal issues, would you say the
b. Is your action ethical according to the utilitarian enterprise system is more of a help or a hindrance in this
perspective? example?