Tim Jackson works as a salesperson at Conway, Inc. In addition to a base monthly salary, Tim receives a commission that is based on the amount of sales that he makes during the month. Tim was hoping to have enough money for a down payment on a new car but sales have been low due to a downturn in the economy. Tim was aware that Conway, Inc. granted credit terms of 2/10, n/30 to its credit customers. In addition, Tim knew that Conway, Inc. had a “no questions asked” return policy. Based on this knowledge, Tim had an idea. Tim contacted a regular customer and convinced the customer to make a substantial purchase of merchandise so that he could earn the commission on the sale. Tim explained to the customer that they would not have to pay for the goods for thirty days and that they could return part, or all, of the goods prior to paying for them. However, Tim asked the customer not to return any of the goods until the following month to ensure that he would earn the full commission.
Requirements
1. Do you feel Tim acted unethically? Why or why not?
2. How can Conway, Inc. deter actions like Tim’s?