1. What ethical concerns do you find with the situation?
– Utilitarianism:
I think from a community point of view, this deal with Tom just doesn’t feel right. If Maria accepts the
cash rebate and starts stocking premium soaps that cost more, a lot of her customers might not be able
to afford them. That could hurt the people who rely on her store for affordable things. So even if it
benefits her personally, it doesn’t really help the larger group of people she serves.
– Shareholder Theory:
When I think of it in terms of stakeholders, it could hurt more than just the customers. Her reputation is
part of her business value. If people find out she's making side money off soap sales, they might stop
trusting her. That could affect her relationships with customers, employees, and even other suppliers in
the long run.
– Virtue Theory:
Maria has built her business on trust and good values. Taking a shady deal like this kind of goes against
that. Even if no one finds out, she’ll know she did something just for the money. I think part of being a
good business owner is sticking to your values, especially when it’s tempting not to.
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2. What course of action would you recommend for Maria?
Honestly, I’d tell Maria to turn down the rebate offer. It keeps her values clean, protects her rep, and
makes sure she’s still putting her customers first. That way, she doesn’t compromise her ethics, she
keeps the trust of her community, and she doesn’t set herself up for legal or reputation issues. She can
still find other ways to grow her business that are more honest and long-lasting.
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3. What two policies or practices could Maria create for her business to prevent similar dilemmas in the
future?
First, I think she should make a clear purchasing policy that says all decisions must be based on customer
needs, not personal benefits. That would set the tone for anyone working with her or for her. Second,
she could also set up a rule that says any supplier benefits or discounts have to be documented and go
through the business, not to her personally. That way, everything stays transparent.
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4. How does this case study mirror issues faced by businesses that you are familiar with?
It reminds me of how some small businesses I’ve seen, especially local shops, sometimes get offered
under-the-table deals by suppliers or partners. One guy I know that runs a phone accessories shop once
got offered fake “premium” products at a cheap price to sell them as real — just to boost profit. He
refused because he didn’t want to lose trust. Also, in my own design business, I’ve had moments where I
was tempted to take shortcuts that might benefit me, but I always remember that staying real with
clients is what keeps them coming back.