Question

Kid's Phones “Alex Smith is preparing a sales presentation for his company, Phones4Kids, which manufactures and sells cell phones that are specifically designed for children. Phones4Kids employs several hundred workers in Murray, Missouri, a small town with only two other large employers in addition to Phones4Kids. Alex hopes to sell specialty phones for boys and girls aged 6-10 to a retailer in Hooptown, Missouri. This sale would represent approximately 25% of the projected revenue for the current year for Phones4Kids. The phones are not specifically designed for internet access; however, about eight percent of the time the phones can pick up a wireless internet connection and the user can access the internet. There is a 48% chance that once a child connects to the internet using one of these specialty phones, he or she could access a pornographic site. Derrick Vance, Alex’s boss, has promised Alex a commission in addition to his regular salary if he makes the sale to the retailer. However, if he tells the retailer about the potential to access pornography via the cell phone, the retailer may buy the phones from a competitor that sells phones without internet access. Alex has reviewed the corporate policy for Phones4Kids and can find no specific guidance on how to handle this situation. However, the policy does indicate that sales representatives are, to be honest, and fair in their dealings with customers.” Determine how Alex should handle this situation. Use the ethical decision-making process to reach a resolution to the hypothetical. Would your course of action meet the firm’s economic responsibilities? Would your course of action meet the firm’s legal responsibilities? Would your course of action meet the firm’s ethical responsibilities?

Answer 1

solution-

the best decision in this situation would be Alex must sell the cell phones to the retailer but only after telling that phone can get access to the internet and can get connected to sites that are not good for children and if after knowing this retailer is agree to buy it then only it must be sold to him and also this course of action would meet firms legal, economic and ethical responsibilities as companies corporate policy states that sales representative must be honest and fair in their dealings with the customers and for being fair with the customers this is necessary so for only getting commission cheating with customers is wrong and Alex boss is not right.