Essay on Ethical Issues in Business

Words: 966
Pages: 4

2. Ethical Issues in Business. It seems that every day in the news we are hearing of new company that has acted at least unethically and possibly illegally in the operation and financial reporting of their company's business dealings. There are many ethical issues in business. One major issue that we see is over and under reporting net income. Companies like to show that every quarter the net income of the business has an increase or profit. In order to show this they adopt unethical or illegal means in the operation and financial reporting. One such method is the indiscriminate use of stock options for employees that enable companies to take employment costs off balance sheet and inflate earnings. With the recent ethical issues we have …show more content…
This is important for businesses along the supply chain as well, in order to “stay ahead of the curve” when making strategic business decisions. Chapter 5, Question 17
Assuming there is a large rise in the demand for computer chips and potato chips. Potato chips manufacturers will be able to respond to a rise in demand quicker than a computer chip manufacturer. This is due to the fact that potatoes are more readily available, and the process for making potato chips is not as involved or difficult. The tools, materials and highly skilled labor force it takes to manufacture computer chips are more complex and will require more time to complete. Both manufacturers may attempt to ramp up production by adding another shift to the existing production line. Another option in the short run may be to contract another company to assist with the manufacturing as the demand increases or purchase/rent additional equipment to expand the production lines as needed to keep up with the demand and process request. In the overall big picture the positive shift in demand will put pressure on the market for increased competition. In order to maintain market share and maintain competitive advantage, both manufacturers will need to deliver value to the customer either in the form of a differentiated product or lower prices. In the long run, both of these priorities will be achieved through investment. A decision will have to be made that either investment in more efficient production