EYK23 Ethics Case Great Cakes is a large bakery known for it

EYK2-3. Ethics Case Great Cakes is a large bakery known for its quality \"boxed cake\" products. Its motto is \"We Use Only the Best Ingredients.\" Ralph Sands, the purchasing supervisor, is responsible for his proven ability to purchase ingredients at the best price available. The cost of all the ingredients has risen substantially over the past few months. Sands decides to purchase 25% of the ingredients at a lower quality than Great Cakes normally uses because the cost is significantly less. Without relying on the company\'s test kitchens, he believes this substitu- tion will not be noticed by the customers and the lower cost will counterbalance the increased costs of the other ingredients. Sands explains this decision to his friend, Lynn Pall, the company\'s accountant, one day at lunch. s not intend to inform management of the inclusion of the lower-quality ingredients in the bakery\'s products. Required What ethical considerations arise from Ralph Sands\' decisions? What problems face Lynn Pall be- cause of his actions?

Solution

That too, taking this decision without informing the management , is disastrous . The management,if informed, may think of some other alternative, to maintain quality & ultimately the market.

Lynn Pall also is responsible to the management if she colludes with Sands ,if the customers\' demand go down because of quality issues.

It is a case of ethical violation of values--that which has put the bakery ,in its present position , among its loyal customers.

So, going in for cheaper quality inputs is certain to endanger the quality of the finished produce--- which may only a matter of time , before the regular consumers, find out.

Once, after loosing the market,it is difficult to instill or win back customers\' confidence & there is the definite possibility of sales revenues going down.

That too, taking this decision without informing the management , is disastrous . The management,if informed, may think of some other alternative, to maintain quality & ultimately the market. Lynn Pall also is responsible to the management if she colludes with Sands ,if the customers\' demand go down because of quality issues.