Business ethics and morals are part of any organizational design and behavior for any organization as usually there are several decisions that individuals need to take that might have ethical or moral effect on the company and on the individuals themselves. Companies should have clear policies for their work morals and ethics so that they can make it less controversial for their employees when they have to take that kind of decisions. On an individual level, each person should have his own ethics and should follow them at work, but that doesn’t mean that the company or the organization doesn’t have to have a clear rules and regulations for any business related incident that might require a decision based on ethics and morals.
In the lumber company that Bob works for they face such decisions on a regular basis but the company in this case doesn’t have defined business ethics regulations as it is a small company. The owner, Mr White, think that there are too many factors that affect business decisions. In the case study Bob, the trader, faces a situation where he gets a suspicious order from Quality Company with a certain type of lumber for a specific application. This type of lumber with the stock size and grade ordered, was not available in the market in that time that it was ordered in. the receiving and operation personal told Bob that they have a similar type of lumber but from a different grade that can be used, and they will be given a one inch thicker material for safety purpose. (Jones, 2012)
The material that the application requires should be Scaffold Planks so that it can withstand a certain amount of stresses and weights, yet the buying company, Quality, didn’t specify that type of lumber on the purchase order as they know it is not available in the market and it will be much more expensive and they wanted to take the order from the end customer. Quality company purchaser claims that all the companies does that because that type of grade and specified material was not available at that time in the market. That person from Quality Company wanted to get that deal by any possible mean. (Jones, 2012)
On the other hand Bob thought it is not ethical to sell that different type of grade to the customer even though it was not specified on the purchase order since he knows the final application requires that certain type of lumber. The buyer from Quality Company was trying to convince Bob as much as possible and at the end he told him that he had to make up his mind in that day and he will call him the next day so that they can process the order and make the sale. On the next day Bob had a meeting with Mr.White the owner of his Lumber company. (Jones, 2012)
In this meeting Mr.White was trying to convince Bob that there he shouldn’t base his decision based on the final application of the lumber since if he did that, then they would have to do that with every single purchase order and if it is not qualified they would reject it. This at the end means that they wouldn’t have enough work to support the company and the people that work in it. Bob was not convinced by the conversation at this point, but Mr.White continued mentioning that the people that work in the company cannot afford not to have enough work to do as they are supporting families. (Jones, 2012)
Small business owners, like all humans, ultimately behave according to their own moral compass, sense of fair play and inclination to deal in good faith. When we find ourselves in a quandary over how to respond to a difficult situation that is in the gray area of a contract, we’re on our own. When we are faced with an ethical issue that would challenge King Solomon, there is no sanctioning body or support group to dial up, to to whom we can email a “scenario. (Blasingame, 2012)
Blasingame, J. (2012) Small Business Ethics, Retrieved from http://www.smallbusinessadvocate.com/motivational-minutes/small-business-ethics-22 Jones, G. (2012) Organizational Theory, Design, and Change, Retrieved from http://books.google.com/books/about/Organizational_theory.html?id=6alXAAAAYAAJ