Ethical/ Social Issues The first ethical/social issue presented at the end of chapter 5 of the Rothaermel (2017) text presents a unique dilemma portrayed from the position of a manufacturing supervisor. Furthermore, the supervisor has the opportunity to meet his organization’s quarterly financial and customer service goals, yet due to mechanical issues, certain questionable actions must be taken. In order to meet the quarterly goals, the paperwork would indicate the order was entirely filled; however, the remaining ten units would be hand carried and added to the shipment prior to arrival to the customer. Violation of Norms Although the actions do not intend on shorting the customer or breaking any laws, temporarily falsifying documentation …show more content…
Not only would the customer be satisfied and gain value from receiving the product as fast as possible, but the positive financial earnings would also create a satisfied perception among shareholders. Additionally, the company is using core competencies of ingenuity to solve problems and resources to serve the customer. However, these outcomes could only occur if the scenario occurred exactly as planned and the actions remained confidential. Alternatively, if the customer or an outside entity discovers the cover up, the consequences could be detrimental to the overall company strategy. To begin, the manufacturer would lose the trust of the large customer, which can in-turn damage the company’s entire reputation. Consequentially, the company’s shareholders could lose faith in the entire organization and management. Moreover, even if the customer receives the full order, the negative press and damaged relationships from performing questionable actions will still harm the company strategy. Thus, the risks of severe damage to the strategy outweigh the benefits of serving the customer and posting positive financial reports. As discussed by Rothaermel (2017), if an action cannot be easily explained to the public, then it is likely