Question

Discuss the potential ethical issues in the following: Classifying a salable product as "waste" and then selling that product "off the books" for the personal benefit of a manager.

Answer 1

Discuss the potential ethical issues in the following: Classifying a salable product as "waste" and then selling that product "off the books" for the personal benefit of a manager.

• This is a case of managerial malpractice in an organisation
• Manager is clearly unethical in this situation
• Classifying a salable product as "waste" and then selling that product "off the books" for the personal benefit can cause huge damages to the organisation
• Watching a manager perform such unethical practices, employees under him would be also tempted for easy money
• Thus this one instance could ruin the organisational culture
• Obviously the manager would sell that product at a low price to customers, hence next time customers would expect the same product at low price. this might affect the profits of an organisation