Dynamic Industrial Assignment.docx - 1(20 points Dynamic Industrial purchasing manager has a friend who owns the company(COMP Inc that produces some of

Dynamic Industrial Assignment.docx - 1(20 points Dynamic...

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1) (20 points) Dynamic Industrial purchasing manager has a friend who owns the company (COMP Inc) that produces some of the components that go into the X370A. COMP Inc. has been losing money in recent years. To save money, COMP Inc. has begun using a lower quality component and selling their components at a lower price to the public. However, the Dynamic Industrial’s purchasing manager has not renegotiated the contract and continues to purchase the components at an above-market rate to help the friend. Is the purchasing manager’s behavior in this situation ethical? Why or why not? In many companies, the purchasing manager has controllability in the company. Controllability is the degree of influence a specific manager has over costs, revenues, or related items for which he or she is responsible for. In this situation, the purchasing manager is able to solely influence the prices the company pays for direct materials and
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  • Fall '12
  • Guymon
  • Ethics, purchasing manager

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