8/2/2019 Caselet on Ethical Decision 4 Safraud

1/2

Caselet on ethical decisionSituation 3

Facts:

We have most reputable woolen yarn producer, using world's best wool fromAustralia.

Our yarn is high demanded, matches with Japanese quality but sells 5% less. We book orders averaging 200000 kgs and go to Australia to buy the yarn

personally.

The dealing in Pakistan is on word of mouth i.e., an oral agreement. An order got based on a wool purchase price of Rs.55/kg which is having a

reasonable profit.

After your return to Pakistan we are intimated by the Chairman of the company thata major drought killed several hundred thousand sheep in Australia and wool pricehas been raised to Rs.75/kg.

We are asked to re-consider the oral commitments to gain 30 to 40% more profit bythe rate revision.

Many End Product Manufacturers (EPM) are coming to your office with heavy offersfor the yarn.

Problem Statement:

How to get more profit without breaching oral agreement and breaking market

hierarchy.

Situation Analysis and Assumption:

By this we will save our self from a temptation of earning easy profit. If we dont do above mentioned action we will damage our market repute badly and

the customers reliance will also be decreased.

It would be a breach of contract (oral agreement) which will relegate morality. We will lose the customers confidence. We may lose our old customers where as old is gold. Dealing directly with End Product Manufacture (EPM) would damage the business

spirit and market decorum.

Getting the more profit in present will not be fruitful in business in the long run. We should fulfill the oral agreement. We should refuse the EPMs to maintain the Proper Business Channel. If we want get more profit from this deal, we, keeping in mind the above noted

drawbacks, we should diplomatically ask some time from EPMs for thinking andurgently arrange a meeting with that dealer whom we are committed according tothe rate of Rs.55/kg.

Tell the dealer/middle-man that due to draught in Australia the prices have beenraised up to Rs.75/kg but I have orally committed to you and I will not entertain theEPM because of you. whereas on the other hand I am being offered by the EPMs formore than 75/kg. Now we must revise the rates and you should also see those EPMswho came to me for yarn on high rates.

In such a way he will reconsider the decided rate by himself without any tension. Bysuch a way we will gain profit and our goodwill and customers relationship will beintact.

8/2/2019 Caselet on Ethical Decision 4 Safraud

2/2

Caselet on ethical decisionSituation 4

Facts:

We are averaging Rs.90,000 pm electricity bill based on the meter reading. A low level operative of Power Co. perused us to reduce the bill up to 22,000 pm by

giving him bribe of Rs.15000 every month as doing other mill of similar capacity. Thisbribery amount spread up to the high-ups of the organization.

Upon your resistance on this bribery he threatened to involve you on some technicalpretext and disconnection of your electric supply.

A religious scholar advised you to give bribery to the operative and full metered bill.Problem Statement:

How to get rid of this threaten and save the employment of 450 people and therepute of the company.

Situation Analysis and Assumption:

In this situation it is recommended that if we are not steeling electricity and we arepaying full metered bill, we should not pay a penny to him and arrange to have ameeting with Superintending Engineer (Operation) and explain him all the scenefrom A to Z.

As you are paying averaging Rs.90,000/- pm according units consumed which isapproximately 4.5 times higher them the other mills having the same capacity. Youwill be appreciated by the Superintending Engineer and with the orders of SE notonly that low level company operator but also XEN, SDO & Line Man (they will might beconnected with that chain)could do something wrong against you at any cost.

In case SE doesn't bive us positive response then we will clearly give him referencesof Media and GM (Intelligence) of WAPDA where we must approach otherwise.

Since all the chain in the corruption channel have to keep up with their unofficialincome and cannot afford to undergo with the legal hearings and other suchEfficiency & Disciplinary proceedings which will disclose their black income frombribery.

Deficit of specific territory is always covered from those people who pay full paymentaccording to meter readings etc.

On the other hand settlement with that operative will lead to corruption and thecorruption is a punishable illegal act which will never be appreciated at any stage.

Once we found guilty that might be of one or two months, but from ElectricCompany a heavy detection bill will be issued to us and recovery of 4 to 5 times highfrom our saving will be made from us.

Saving money by corruption or theft of electricity will not become Khairaat accordingto Islam because Allah is Paak and likes the Paak things for him.

Paying that man will be an encouragement to the corrupt people and will alsoencourage them to blackmail to more mill operator.