Canadian Products Corporation participates in a highly competitive industry. To compete successfully and reach its profit goals,

Question:

Canadian Products Corporation participates in a highly competitive industry. To compete successfully and reach its profit goals, the company has chosen the decentralized form of organization. The company evaluates each manager of a decentralized investment centre based on the centre's profit contribution, market penetration, and return on investment. When managers fail to meet the objectives set by corporate management, they are either demoted or dismissed.

An anonymous survey of company managers revealed that they feel pressured to compromise their personal ethical standards in order to reach corporate objectives. For example, at certain plant locations there was pressure to reduce quality control to a level that could not ensure that all unsafe products would be rejected. Also, sales personnel were encouraged to use questionable sales tactics to obtain orders, including offering gifts and other incentives to purchasing agents.

The chief executive officer is disturbed by the survey findings. In his opinion, such behaviour cannot be condoned by the company. He concludes that the company should do something about this problem.

Instructions

(a) Determine who the stakeholders are in this situation.

(b) Identify the ethical implications, conflicts, or dilemmas in the situation.

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...