Business ethics critical thinking sample

The article talks about that one of the largest food companies in Britain is asking its suppliers to make annual cash payments to the company or risking losing their contract. This is a part of turnaround plan of the company, where it is planning to reduce the number of supplier to twelve hundred. Many of its suppliers have raised concerns over the demands of the company. However, the method is not legal and is totally based on morality and ethics. Premier Foods needs the money finance its promotion, and product development. Without having ample money in its kitty, it cannot start new project, and it is justified in asking for payment. However, the suppliers think that they cannot make hefty payment at a short notice, and if they lose their contract they will not be able to feed their families. The issue is ethical in nature, as there is a dilemma whether or not Premier Foods is justified in asking for payment from the suppliers, or whether it should let the suppliers pay on regular terms.
The article teaches us that management can be difficult job when you are stuck between two different choices where the company’s interest and business ethics are in conflict with each other. Managers are hired to do things that are in the best interest of the company, but on certain occasions they have to deal with the morality and ethical issues as well, and this creates a dilemma regarding the correct choice of action. It teaches us that good managers should take immediate decision, and should justify the decision they have taken rather than losing their sleep on their own decisions (Daneshku, Sullivan, Pickard, 2014)

References

Daneshkhu, S., Sullivan, C. and Picard, J. (2014). Premier Foods’ demand to suppliers raises concern – FT. com. [online] Financial Times. Available at: http://www. ft. com/intl/cms/s/0/99b00df8-7c52-11e4-aa9c-00144feabdc0. html#axzz3LG1mnvpC [Accessed 7 Dec. 2014].