Billie Daniels

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Information about Billie Daniels
Business & Mgmt

Published on March 12, 2014

Author: argharay56



Billie Daniels

Billie Daniels Case Analysis SDM, NMP Term IV Group 5 Abhijeet Tomar - 03 Argha Ray - 15 Khushal Malik - 28 Vipin Kathuria– 59

Context • Billie Daniels is district sales representative for Consumer Foods Inc. • Engaged in Commission Sharing with Supermarket staff. • Complaint from one of the stores in his district for unethical practice. • National Sales Manager Harper to decide on the case.

Billie’s Values: • Believes in Profit Incentive and Free Enterprise. • Ideologically inclined towards right wing Republican political system. • Honestly believes in his practice of commission sharing and advocates it. • Even contemplating on new scheme. • Ignorant of Ethical and Legal implications of his action. • But, done in good faith to increase efficiency across the supply chain. • Though his intentions are bonafide one cannot bend the law in the name of efficiency.

Harper’s Dilemma: • 18 months at the helm without any knowledge about ongoing practices at the field level. • Manifests ineptness in his managerial role. Oblivious and undecided. • Little homework before Billie’s interview. • Should have clearly spelt out the ethical code to his subordinates, the moment he took over as National Sales Manager. • Should have immediately escalated to top management to avert fallout. • Still dilly dallying between punishment or exoneration of Billie. • Even his predecessor was oblivious about Billie’s delinquencies.

Ramification for Consumer Food Inc: • May get involved in long protracted lawsuit. May be charged with unfair competitive practices. • There may be more skeletons in its cupboard. • The company’s creed do not objectively spell out what constitutes ethical standards and what’s not. • May not have invested on Employee Training on Ethical code. • No choice but to release Billie from current role, even if he is not dismissed immediately. • Need to engage its Legal Department and monitor the case closely. • Such cases need swift action to contain fallout. An apology must be immediately sent to all affected stakeholders.

Billie’s Can of Worms: • Though it may seem like facilitation payment, it may have violated the law of the land. • Perpetuates unfair competition. Competitors’ products in supermarkets have suffered for last 2 years. • Though evidence still now is circumstantial, it wont take time for conclusive evidence to surface. • If such schemes are allowed to continue it will gradually become a norm with everybody participating in the degradation. • If Billie is let off , then other such unfair practices happening elsewhere will go unnoticed. • Not only Billie but the Supermarket staff should be taken to task.

Decision: • Billie has Crossed the Rubicon in no uncertain terms. • Ignorance of Law is no excuse. • If Billie continues in the company, it would never be able to regain the moral high ground. • All the Supermarkets along with Consumer Food Inc must collaborate to smoke out every offender and let law take its own course. • That Billie and other Collaborators should be fired immediately is beyond any doubt. • Harper deserves at least a vehement reprimand. • Draft a Ethical Policy and disseminate among employees.

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