Unethical Business Practices in Müller Imports: Impact and Consequences

Unethical Business Practices in Müller Imports: Impact and Consequences

Situation

There is a company that manufactures a unique type of cars and supplies these vehicles to their owners such as Shamalai Automotive and Muller import. The demand for this kind of car is increasing, and the manufacturer is unable to keep pace with demand, and the dealers are competing for the largest number of these vehicles in various ways. Becky is surprised that Müller imports receive 200 cars a month, while Chamalay Automotive receives 25 vehicles a month.

Becky notes that there is a jewelry vendor who issues a $ 5000 bill for “miscellaneous services.” Franz Mueller, the owner of the dealership, personally agrees to pay these invoices. Also, he noted that Muller often gives Rolex watches to the regional sales manager for the manufacturer and other sales executives.

Analysis

Obviously, the ethical issue here is the companies obtain the facilities and others through bribery and suspicious transactions with suppliers. A company that sells rare and distinctive cars in the market and wants to attract the trust of customers in the presence of competitors in the market must be distinguished by the integrity, reliability, and safety in dealing with the supplier. Also, it should avoid harm to other companies compete with them and competition between them through the study of the market and requirements and more experience, and there is transparency in dealing with him and among others.

Given the moral issue facing Becky is to decide on what to do about its new employer, Muller imports bribe sales managers and other sales executives to receive a large allocation of cars. By looking at this issue from a rational perspective, Becky is a diligent and dedicated employee should meet with the manufacturer and owner of the Muller company. And discuss with them the impact of these suspicious transactions on the purchasing power of the market, and impact on the rest of the competitors and their shares and the losses that they will incur.

One of the potential consequences for Müller’s imports that some customers and institutions are reluctant to buy from the company and therefore the company’s sales will decrease, and of course the profits will decrease. The amount of profit is mainly related to the amount of results and revenues from sales or other business activities of the entity. With the increase in sales, for example, the profit can increase, and it can be decreasing with lower sales.

There are also some consequences that Moller’s competitors will incur as a result of suspicious transactions, such as the inability of companies to obtain an equal number of cars with Müller. Therefore, their sales will be limited, and the margin of profitability will be reducing. So, the companies unable to pay the operational expenses of the establishment, including the inability to pay the salaries of workers and therefore will lose the company’s high-skilled labor because of their resignation from the company and their enrollment in other companies and of course will declare these companies’ bankruptcy and will close companies.

Therefore, Becky’s ability to convince the owner of the company not to engage in such suspicious transactions and prevent the sales manager and the executive managers from taking bribes will criticize the market and contribute to increasing purchasing power and the volume of commercial transactions. Thus, increasing the efficiency of the competing companies and growing their sales. So, that will increase customer satisfaction among them.

Conclusion

Given the above analysis, Muller imports management violates illegal ethics in its business dealings. All companies must be integrity, reliability, and safety in their business dealings with their competitors to maintain the purchasing power of the market and thus increase the efficiency of companies and increase their profits and cause to provide many job opportunities, which contribute to reducing the number of unemployment and the revival of the market.

References

Market ethical, July 5,2017 from http://www.ethicalmarkets.com.