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Unethical Business Practices and the Importance of Integrity in the Automotive Industry
Situation Provided
A vehicle manufacturing firm, which produces special car models and transports them to the respective owners, has recently been unable to make enough cars to suffice the demand. The demand for these special vehicle models has recently escalated, with companies such as Muller Imports and Chamalay Automotive Company competing to get as many cars as possible. In the recent business transactions, Chamalay has been getting only about 25 cars a month, whereas Muller Imports Company gets at least 200. This situation shocks Becky, an employee of the car manufacture company, who dares to look into the existing problem. Becky finds out that the proprietor of the Muller Company, Franz, has been paying for invoices for jewelry delivered to the car company, and even gifts the regional manager and other workers of the firm with Rolex timepieces.
Situation Analysis
The above situation poses a very serious ethical and moral problem. The preferential services provided by the car manufacturers to the Muller Company are acquired through unethical acts such as bribery and unnecessary transactions. This may result in a bad image and name for the manufacturer, as any firm dealing in special products (such as unique car models) in any market desires to impress its potential customers through transparent dealings, reliability, and integrity. Moreover, any client of a company deserves equal treatment, without having to give bribes. The discovery that the company is favoring one client may result in the loss of other clients, which is bad for business. Every business should aim at business success by conducting a market study, and the creation of a reputable name by ensuring transparency in the various business dealings.
Becky is therefore faced with the decision on how to deal with the company’s sales manager, who has been compromised by Franz Muller, and the management of the Muller Company. Being an honest and diligent worker, Becky should arrange for a meeting with Mr. Franz and discuss the moral issue with him. She should let Mr. Franz know the serious implications of his shady dealings with the employees of the manufacturing company, and the negative effects that bribery acts could have for the company. For instance, the other clients of the company may come to the knowledge of the dealings with Mr. Franz. They would henceforth be reluctant and not willing to proceed with any business transactions with the ‘immoral’ company. The sales and incomes of the company would drastically reduce, affecting the business badly.
The discovery of the unethical dealings with the Muller Company will also result in a bad name for the manufacturing company. Generally, people avoid any dealings with companies having a bad reputation. This would mean that the manufacturing company would lose any potential customers and business contracts, affecting the profitability of the manufacturing business. The competitors of this company would take advantage of the bad publicity and increase their advertisement and promotion efforts, eventually kicking the car manufacturer out of business.
Becky should strive to explain to Mr. Muller why he should cease offering bribes to the employees of the company, and convince him that his company would continue getting cars without him dealing in the shady transactions. The Muller Company should acquire cars through a competitive process, and not unethical dealings. This will ensure that all clients enjoy equal services, creating a good reputation for the manufacturing company.
Conclusion
Integrity and transparency are crucial virtues for the success of any business. The Muller Company should stop engaging in unscrupulous dealings with the car manufacturer, and acquire the number of cars they want by means such as competitive bargaining. Business ethics should never be violated to achieve business needs.
References
Market ethical, July 5, 2017, from http://www.ethicalmarkets.com.
