Question

I. Read the following case: “Alex Smith is preparing a sales presentation for his company, Phones4Kids, which manufactures and sells cell phones that are specifically designed for children. Phones4Kids employs several hundred workers in Mooray, Missouri, a small town with only two other large employers in addition to Phones4Kids. Alex hopes to sell specialty phones for boys and girls aged 6-10 to a retailer in Hooptown, Missouri. This sale would represent approximately 25% of the projected revenue for the current year for Phones4Kids. The phones are not specifically designed for internet access; however, about eight percent of the time the phones can pick up a wireless internet connection and the user can access the internet. There is a 48% chance that once a child connects to the internet using one of these specialty phones, he or she could access a pornographic site. Derrick Vance, Alex’s boss, has promised Alex a commission in addition to his regular salary if he makes the sale to the retailer. However, if he tells the retailer about the potential to access pornography via the cell phone, the retailer may buy the phones from a competitor that sells phones without internet access. Alex has reviewed the corporate policy for Phones4Kids and can find no specific guidance on how to handle this situation. However, the policy does indicate that sales representatives are to be honest and fair in their dealings with customers.” 2. Complete the following 2 tasks: A. Analyze how you would resolve the dilemma using (1) utilitarianism, (2) the principle of rights, (3) the principle of justice, (4) virtue ethics and (5) the Golden Rule. B. Determine how Alex should handle this situation in a written memo. Please use the following ethical decision-making process, which builds on the process provided by the text but incorporates an economic and legal analysis of proposed courses of action: Step 1: State the Problem / Analyze the Problem Step 2: Identify All Courses of Action that You Could Take Step 3: Evaluate Each Course of Action a. Would the proposed course of action meet the firm’s economic responsibilities? b. Would the proposed course of action meet the firm’s legal responsibilities? c. Would the proposed course of action meet the firm’s ethical responsibilities? 1) Note the ethical principles / tests employed by top management. 2) Note the ethical principles / tests required by the code of conduct. Step 4: Evaluate New Alternative (Repeat Step 3) Step 5: Implement Chosen Course of Action

Answer 1

1.   Resolving Dilemma :

1. Utilitarianism :

Actually it is very common to have access to pornographic sites when a phone connects to internet. So it is better to reveal the truth to customer that the phone has the feature to internet connectivity. Then it does not mean of violating ethics. Information is disclosed. There is no manipulation. Customer will be happy.

1. The Principle of Rights :

• High light the feature of product
• Warn about access to pornographic sites as ethical statement for the sake of customer/ information to parents
• High light the positive aspect/ benefit of internet access

1. The Principle of Justice :

• Communicate the proper information step by step to avoid access to pornographic sites in the user manual
• Prepare a ethical statement which states the company social responsibility for the sake of buyers

1. Virtue Ethics :

• It is also part of total quality management and social responsibility of business
• It is the process of educating the buyer about the pornographic sites and persuading the buyer to buy the product and building strong brand reputation for the product ethically.

1. Golden rule :

• It is nothing but Empathy.
• Enter in to the shoes of a customer and understand his feelings about the product
• Start persuading process in his way with out violating business ethics and company policy

1. How Alex should handle the situation in a written Memo :

State / Analyse the problem :

• Possibility of internet connectivity and access to pornographic sites
• Customer problem and his preference
• Sales ethics during the time of sales
• Effect of violation of ethics in sales activity on Reputation of company

    Courses of Action :

• Making ethical sales statements for the welfare of the buyer legally
• Training for sales personnel to handle conflicts and ethical management
• Setting up of code of conduct
• Competitor product analysis

Meeting firm’s Economic responsibilities :

• Ethical practices of company can definitely fulfil the economic responsibilities of a firm in sustainable manner
• Clear product description improves customer reliability on the brand
• This would increase the sales volume

Meeting Firm’s legal responsibilities :

• Preparing a ethical policy for its products and sales activity which is legally binded
• Train sales personnel on the policy
• Sales staff are very crucial should have the responsibility to protect company business ethics and reputation of company in the market
• Breach of policy rules may create unnecessary issues/ problems to business
• Continuous monitoring of sales activity is very crucial to fulfil the legal responsibilities

Ethical principles and tests employed by Top level Management :

• Setting principles
• Task oriented training for sales personnel
• Situational handling activities on the part of on job training
• Sales management strategies
• Professional working environment

Code of Conduct :

• Close monitoring on sales department
• Separate ethical policy for sales
• Application of policy
• Strict implementation
• Anonymous messages to sales staff to alert them on ethical policy issues
• Internal audit procedures to identify misconduct with respect to ethical behaviour of sales personnel

Implementing chosen course of action to wards building ethical business organization. Sales people ethics are the ethics of whole business which reflects the organization effectiveness . Fair practices are very important to achieve customer satisfaction. Sales people/staff should be aware of ethical policy rules to implement the course of action.