Question

Ethics case

Swan Sports manufactures golfing equipment. Traditionally, the company has been busy all year but has noticed that ov

er the past few years business has fallen off in October and November. If new business does not come in this year, the

company will have to lay off some long-time employees for those 2 months. Rob Patell, a sales representative, received

an order from Better Equipment Co., a competitor. Better Equipment cannot meet a customer’s rush order on time and

is willing to subcontract the work to Swan Sports on the condition that the Better Equipment Co. name—

not Swan Sports’ name—appear on all products. The order is at a price substantially below Swan Sports’ usual selling

price. The only way this order can be produced is to use lower- quality materials than Swan Sports normally uses in its

own products.

Rob Patell has recommended to his supervisor that this order be accepted and that lower-quality materials be

used. Patell’s reasoning includes the following points:

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It is clearly a one-time order.

?

Swan Sports’ name will not appear on it.

?

Workers will not have to be laid off during October and November.

In addition, a differential analysis shows that Swan Sports will lose $1,000 on the order.

What should the sales supervisor consider before making a decision?

Answer 1

Explanation:

• The Swan Sports is respected and well know brand name in market and known for its better business. Supervisor should have to make decision that if he want to lose the brand and quality image in market by lowering the quality of their product or not.
• If ethically this decision is considered than this will be wrong to lower the quality as Swan Sport was name in itself and if sales supervisor sees this from price perspective that there is no any other option than using lower quality product as already company is out of work and thinking about laying off worker.
• If this order is treated as one time order than it will tarnish brand image of company.
• Company is also experiencing decrease in business and in order to keep older employee they need to accept this order and bear the loss of $1000.