Reference no: EM132316627

ETHICAL ISSUES

National Calcium Distributors ("National Calcium") is a distributor of calcium chloride products used by other companies in their respective production processes. Calcium chloride is customarily sold by weight. The price per pound is $.10. Since calcium chloride is a commodity, the price that can be charged is very competitive. National Calcium is the supplier of calcium chloride to Cement Mixtures Inc. ("Cement Mixtures"). In order to improve its profitability, National Calcium will customarily ship to its customers 10% less calcium chloride than was ordered since most of its customers do not own a scale to weigh the product received from National Calcium. Marty, the manager of National Calcium, is aware of, and encourages, this practice.

In June of this year, Cement Mixtures placed an order with National Calcium for 24,000 pounds of calcium chloride. National Calcium shipped 21,600 pounds of calcium chloride but charged Cement Mixtures $2,400, which is the price for 24,000 pounds of calcium chloride. Unknown to National Calcium, Cement Mixtures purchased a scale and weighed the product it received. Cement Mixtures called National Calcium and accused it of deceptive business practices. Cement Mixtures threatened to contact the Attorney General to investigate the practices of National Calcium. National Calcium promptly issued a credit to Cement Mixtures for $240.00.

Double space, one page , analyze the business and ethical issues involved in the business practices engaged in by National Calcium. Be sure to include a concise discussion of the ethical dilemma involved, the school of thought employed by the company, possible consequences of the ethical decision made by National Calcium, how application of a model would help with making a good decision, and whether the policies of National Calcium should have been different from its actual business practices, and your reason for your position.