During the financial crisis of 2008, Congress was particularly upset by the high salaries paid to CEOs of financial institutions that were losing money. Members of Congress argued that CEO compensation should be tied to profits such that in good times the CEO makes money, but in bad times s/he does not. Companies argue that such a practice would not only be impractical because no CEO would work under such conditions, but, furthermore, it is unethical because the CEO cannot control market conditions
Discuss the ethics of this situation.
If a company wishes to use JIT successfully, it must make a lot of demands on its suppliers for more frequent deliveries of smaller batches. This, in turn, increases distribution costs for the supplier. Is this ethical?
How would you negotiate such a change in inventory management?