Question

Great Cakes is a large bakery known for its quality “boxed cake” products. Its motto is “We Use Only the Best Ingredients.” Ralph Sands, the purchasing supervisor, is responsible for ordering the ingredients for all the bakery products. He is being considered for a promotion based on his proven ability to purchase ingredients at the best price available. The cost of all ingredients has risen substantially over the past few months. Sand decides to purchase 25% of the ingredients at a lower quality than Great Lakes normally uses because the cost is significantly less. Without relying on the company’s test kitchens, he believes this substitution will not be noticed by the customers and the lower cost will counterbalance the increased costs of the other ingredients. Sands explains this decision to his friend, Lynn Pall, the company's accountant, one day at lunch. He also tells her that he does not intend to inform management of the inclusion of the lower-quality ingredients in the bakery’s products.

Question: What ethical considerations arise from Ralph Sands’ decisions? What problems face Lynn Pall because of his actions?

Answer 1

Ralph sands is of the opinion that by including 25% of ingredients of lower cost and lower quality into the total ingredients, the total cost of ingredients will remain the same by counter balancing.

It is not whether the customers identify the difference or the cost will be maintained as constant, the motto of the company is getting diverted as a result of such decision and also Ralph sands decision to not inform management about his decision is not a good step which might throw him away from his position and may have a negative impact on him.

The problem that Lynn Pall faces is even after knowing the moves of Ralph sand she is not mentioning that to the management putting herself at risk.