Assume you are the CFO of a factory that supplies product to a large well-known retail chain. It is your company's policy, and the general policy of your industry, to offer product to this retail chain on 30-day credit terms. However, it turns out that this large well-known retail chain consistently extends their payments out to 60 days. When pressed, the retail chain responds to all the suppliers that they can choose to either accept the payments as they currently are or lose the business entirely. Is this ethical

Question

Elliana Jacobs

Business

5 June, 13:28

Assume you are the CFO of a factory that supplies product to a large well-known retail chain. It is your company's policy, and the general policy of your industry, to offer product to this retail chain on 30-day credit terms. However, it turns out that this large well-known retail chain consistently extends their payments out to 60 days. When pressed, the retail chain responds to all the suppliers that they can choose to either accept the payments as they currently are or lose the business entirely. Is this ethical

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Elaina · Answer 1

Answer: It is not ethical

Explanation:

Ethics is defined as a moral philosophy that is good for individuals and the society at large.

The basic principles of ethics are objectivity, professional due - care and competence, professional behavior, integrity and confidentiality.

The act of intimidation by the retail chain is un ethical as it is not to the benefit of the suppliers, Moreover, this act violates the principle of professional behavior and integrity.

A good ethical practice respects the trading policies of business partners.