Rein Chemicals Essay

757 Words4 Pages
Rein Chemical Company A quick read through the case shows that Rein Chemical has a task on hand and Garrison needs to correct the issue before it blows out of proportion. What is more concerning is that some of the management’s reactions have been to push this under the carpet and move on. This points to a fundamental ethics issue in the firm on what is acceptable and what is not. The problem of providing inferior chemicals instead of the one ordered arises due to a bunch of issues. The major ones 1. Non-compliance to ethics code 2. Informal negotiation of prices 3. Inefficient order management systems for order placed over phone, field sales etc. 4. Inefficient control systems I believe that the Management needs to take this matter with the highest priority and take appropriate steps to tackle it. Garrison – being the CEO the first step and setting the necessary direction is his job. In this case Garrison should set the tone of this being the highest priority and send message to the management team. He needs to convince Bob Lancaster and Charlie Hoffman of the importance of taking the right path and doing things the ethical way. The specialty chemicals division contributes to less than 25% of the sales, hence offers a less risky proposition in terms of potential sales decline when the news gets out. Having said that, the sales numbers should not decide the course of action here, rather provide only guidance on what to expect as fallout. Garrison needs to send out clean clear message to all employees on what is acceptable behavior, the risks, and why the right course of action albeit difficult needs to be taken. In his message he should mention sales people and show that he has their back in this and would not let them fall prey. He needs to set a clear vision on what can be expected and how he plans to get there. His goal needs to be

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