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Question 1
The ethical issue in the case is the decision of Raider Inc. to default payment of the $250,000
owed to Johnson Printing. PLB has remained afloat due to the loyalty of Johnson Printing, which
continued to inventory books to the company despite the financial challenges encountered.
Although Raider Inc. acknowledges the company's contribution to the PLB's survival, they still
want to default payment, an action the company has been doing to other companies after
accusation. This is unethical because Raider Inc. can pay the debt, yet they plan to declare PLB
bankrupt if legal action will benefit them. Also, as a small company, Johnson Printing still
managed to supply PLB books, and therefore failure to repay them will be unethical by betraying
their trust. This will affect the operations of Johnson Printing and even throwing them out of
business.
Question 2
The stakeholders involved in this case that will be affected include Raiders Inc., PLB, and
Johnson Printing. The most negatively affected in among the stakeholders in the Johnson
Printing while the stakeholders are benefiting in the case is the Raider Inc. after the accusation of
PLB, Raider Inc. plans to default the payment of $250,000 owed to Johnson Printing. Therefore,
the company will not be undergoing any loss at the expense of Johnson Printing, whose
operations may be affected by this decision. However, Raiders Inc. may under the C-corp Status
be protected, but their reputation is affected.
Question 3
There are different ways in which Raider Inc. can solve the ethical issues facing them. Given that
the company has made more than enough profits in the previous operations where they defaulted
payments, they can clear the $ 250,000 owed by PLB. This will not affect their operations,
preventing Johnson from running out of business as they did to other vendors. Although payment
of the debt may be considered a loss to Raider Inc., the accusation of PLB took account of the
liabilities, and therefore it is not affected in any way. The second option for the company would
be retaining Johnson Printing as the vendor and supplier of books but first ensure that the balance
is cleared within an agreeable period either in installments, which will not affect either
company's operations. Therefore Raider Inc. will not need to look for a different supplier.
Another option is for Johnson to retain some of the assets owned by PLB, covering their debt and
remaining a supplier to the new business owners. This decision does not hurt either business, and
therefore, it will be a win for both while Johnson Printing remains a significant vendor. Raider
Inc. may opt to retain Johnson Printing and repay the debt owed in installments until the debt is
cleared. This will ensure that Johnson Printing is still operational.
Question 4
Rick's best course of action is to draft a working solution that will say the debt repaid. As a
trusted and loyal vendor, Johnson Printing does not have to suffer, as Rick states, other vendors
have suffered before. The best action is to repay the company's amount, which may be done in
installments until the debt is cleared. This action is meant to benefit both the companies and has
no risk associated with it. Raider Inc. will maintain its good reputation and will not have to look
for a new vendor while Johnson Printing is not affected by losing the money. Also, the trust
between the two companies will be strengthened and continue supporting the operations of PLB
during the lean periods.
Question 5
The company needs to communicate the code of ethics with employees, promoting ethics among
employees on expected ethical rules and values for employees to follow. Also, there is a need to
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