Resolving ethical business challenges: Frank Garcia and Acme Corporation

Pascua, Jerson
Quindoza, Marjorie
Ricalde, Maria Gabrielle
Concepcion, Ashley
EXECUTIVE SUMMARY
Frank had to convince Otis for to buy equipment from Thermocare. Salesman managed to do it
twice by offering relatively cheap compliments. For the first time, he proposed to go to a Cubs
game, and, for the second time, he invited him and his wife in Cancun.
The third method was the organization of a party in Las Vegas, which in my opinion, was too
much. Despite the fact that the company was able to further cajole their business partners, such
actions are not ethical. In particular, visiting adult entertainment clubs with their business
partners. If this information gets out, it will strongly strike on the companys image.
To make ethics a part of Acmes core organizational structure, first of all, it is necessary to
establish the principles and values. It is the basis of any corporate culture and decision-making.
Amber and Frank should rethink their ways of dealing with partners and start to distinguish what
is appropriate and what is not in the business relations.
Secondly, the company should realize why it is indispensable to implement an ethics culture.
There is a variety of reasons, but the main and general is that companies that have a strong
corporate culture, in most cases are more successful. As a consequence, they are more profitable.

TIME CONTEXT
VIEWPOINT
Mr. Frank Garcia a salesperson with Acme Corporation
Otis Hillman A buyer of Thermocare
Amber Franks boss
CENTRAL PROBLEM
Cheating and Honesty:
Frank Garcia cheats and at the same time he lied in this situation. This issue comprises bluffing
in business. We think that lying or bluffing is unacceptable and not ethical. Still, keep some
confidential or secret information back is reasonable. This is why appealing to peoples sense of
honesty and begging them to be honest is not very effective; often people dont even know that
they are cheating.
Conflicts of Interest:
This occurs when Frank Garcia offers an incentive that might bias his judgment against the best
interests of the customers. He thinks that disclosing conflicts of interest is the best remedy, but
they too are incorrect.
Bribery
He should be aware about professional relationship. Despite the effectiveness, it is not ethical to
spend time with your partner by visiting clubs for adults. Bribery is of particular interest to
governments and international agencies.

Leadership:
The decisions made on the basis of principles and values may not always be proper. It all
depends on how a person interprets them. Frank needs to understand the importance of his
actions and not to go to deal with his conscience. It means that it falls to you to shape the
environment in which others work; your actions will create a more or less ethical system.
OBJECTIVES
1. To be able to know what are the ethical issues happened between Acme Corp. and
Thermocare.
2. To be able to know if Acme Corporation is liable of violating ethical code
AREAS OF CONSIDERATION
Acme

Strengths
Having a

Weaknesses
Acmes product

Opportunities
More funds for

Threats
Losing their

Corporation

$1,750,000

having

expanding their

reputation and

operations

revenues.

worth of contract problems(defectiv

Frank

between

e products)

Thermocare.
Getting a raise

Getting blind by

More chance of

Getting fired and

and promotion.

the promotion and

closing a

sued by

Using his and

bonuses

contract between

Thermocare

Acmes

Acme and

resources for his

Thermocare

own greed.
Thermocare

Getting sued by

distributing
defective
Otis

Closing a

Without his

products
Getting fired for

contract for

knowledge of

getting defective

supplying

getting defective

products as their

medical supplies

products

supplies.

for Thermocare

ALTERNATIVE COURSES OF ACTION

1. Company has to build up a system for code of conduct focusing on an ethical working
environment where every employee is trained carefully about ethical behaviors,
transparency and business vision. Especially, well-trained must be apply for management
team first of all, like Amber. Managers after having a clear vision they will help company
develop in a right direction.
2. Fire Frank and Amber because they abused and used the companys resources to bribe
Otis. And also for distributing defected products for fulfillment of their contract.

RECOMMEDATION
The acme corporation needs to change their strategy in keeping their clients, because of the
media finds out about the paying for clients to go to places like adult entertainment club; they are

going to think that acme corporation is bribing their clients to stay with them. They need to take
an action for this. If I were Amber, I will fire frank for his action.
CONCLUSION
Most companies have a code of ethics in which employees are committed to have a good ethical
behavior. In this case gift exchanges are not permitted in some companies this may vary
exchange so there will be a conflict of interest. Frank does that thing for the sake of their
company but if this well be known the company will go down because of that issue. So, Frank
shouldn't take care of the client with adult entertainment so the acme corporation will not be
involved in ethical issues. In this particular case allowing acme customer to go to a strip club
getting or under companies expense or misused of Acme corporations fund therefore it shouldnt
be tolerated and those people who is involve should sanction and expelled.
DETAILED PLAN OF ACTIONS