Peter has been working with the Bigness Oil Company's local affiliate forseveral years, and he has established a strong, trusting relationship with Jesse,manager of the local facility. The facility, on Peter's recommendations, hasfollowed all of the environmental regulations to the letter, and it has a solidreputation with the state regulatory agency. The local facility receives variouspetrochemical products via pipelines and tank trucks, and it blends them forresale to the private sector. Jesse has been so pleased with Peter's work thathe has recommended that Peter be retained as the corporate consultingengineer. This would be a significant advancement for Peter and hisconsulting firm, cementing Peter's steady and impressive rise in the firm.There is talk of a vice presidency in a few years. One day, over coffee, Jessetells Peter a story about a mysterious loss in one of the raw petrochemicals hereceives by pipeline. Sometime during the 1950s, when operations were morelax, a loss of one of the process chemicals was discovered when the bookswere audited. There were apparently 10,000 gallons of the chemical missing.After running pressure tests on the pipelines, the plant manager found thatone of the pipes had corroded and had been leaking the chemical into theground. After stopping the leak, the company sank observation and samplingwells and found that the product was sitting in a vertical plume, slowlydiffusing into a deep aquifer. Because there was no surface or groundwaterpollution off the plant property, the plant manager decided to do nothing.Jesse thought that somewhere under the plant there still sits this plume,although the last tests from the sampling wells showed that the concentrationof the chemical in the groundwater within 400 feet of the surface wasessentially zero. The wells were capped, and the story never appeared in thepress. Peter is taken aback by this apparently innocent revelation. Herecognizes that state law requires him to report all spills, but what about spillsthat occurred years ago, where the effects of the spill seem to havedissipated? He frowns and says to Jesse, "we have to report this spill to thestate, you know." Jesse is incredulous. "But there is no spill. If the state made us look for it, we probably could not find it; and even if we did, it makes nosense whatever to pump it out or contain it in any way." "But the law says thatwe have to report ...," replies Peter. "Hey, look. I told you this in confidence.Your own engineering code of ethics requires client confidentiality. And whatwould be the good of going to the state? There is nothing to be done. Theonly thing that would happen is that the company would get into trouble andhave to spend useless dollars to correct a situation that cannot be correctedand does not need remediation." "But...." "Peter, let me be frank. If you goto the state with this, you will not be doing anyone any good-not thecompany, not the environment, and certainly not your own career. I cannothave a consulting engineer who does not value client loyalty." What are theethical issues in this case? What factual and conceptual questions need to beaddressed? How do you think Peter should deal with this situation?5:02 PM

Business ethics refers to the set of values that are embedded in the policies and practices of the…

have a consulting engineer who does not value client loyalty." What are the ethical issues in this case? What factual and conceptual questions need to be addressed? How do you think Peter should deal with this situation? 5:02 PM

have a consulting engineer who does not value client loyalty." What are the ethical issues in this case? What factual and conceptual questions need to be addressed? How do you think Peter should deal with this situation? 5:02 PM

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.2SB

See similar textbooks

Similar questions

Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Gamestop Corp. said the following about its gift card sales in its most recent (2019) annual report:“We establish a liability upon the issuance of merchandise credits and the sale of gift cards. Revenue is subsequently recognized when the credits and gift cards are redeemed.”When Gamestop sells merchandise to a customer who is using a Gamestop gift card to purchase the merchandise, what is the impact on Gamestop’s financial statements? (Ignore any inventory effects) Liabilities decrease and cash decreases Liabilities increase and the Income Statement decreases Liabilities decrease and the Income Statement increases Liabilities decrease and cash decreases No effect because the transaction was already booked when the customer purchased the gift card
All Things Auto is a retailer that purchases and sells vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with a merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…
The Dean of Iqra University (IU), a prestigious educational institution, has requested the President of Jupiter Insurance Company Limited to accept five final year students as interns during the summer holidays. As the Public Relations Officer of Jupiter Insurance Company Limited, you have been directed to write a email of about 250 – 300 words, to the Dean stating that it would not be possible to provide internship facility this year. You may offer any reasons for not agreeing to the Dean’s request. However, your letter should be worded in a courteous tone as IU not only provides substantial business to your company but also because the Dean has considerable influence and respect in the business and professional circles. Assessment Rubric:
Congress is give the exclusive power to adopt regulations under the commerce caluse for which of the following? (Choose all of the correct answer). A. Amtrack train fares between L.A. and Reno, Nevada B. Lyft fares charged in Las Vegas C. Air fares charged by airlines between S.F. and New York D. Bus fares between L.A. county and Phoenix, Arizona E. Catamaran fares between Huntington Beach and San Clemente Island
When SS Electroplating Company started the electroplating operations in a residential location in Bengaluru, it received a notice from the pollution Control Board to install the effluent treatment plant within 15 days, failing which they would seal the plant. The Director of the company collected the information that it would cost about 10,00,000 to buy an effluent treatment plant, an area of about 600 sq.feet to install it over a period of 2-3 months, & running cost of about 40,000 per month for the purchase of material like costic soda & others. The effluent contained nickel, synide, cromium, cadminum & zinc, which were to be treated separately using different chemicals. After effluent liquid of about 800 litres per day was treated, the sludge was to be dried, packed, stored & dumped in a government notified place. The entire process would not only cost substantial amount, but also would need additional area of about 600-700 sq. feet The company gathered information…
America Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The fair value of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P9,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be Redeemed 2020 15,000 80% 2021 7,950 85% 2022 2,550 85% 2023 15,000 90% Required: Prepare journal entries from 2020 to 2023.
MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…
MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…
MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…
MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…