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Ethics in Internal Buying

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Micro Tech Company ethics problem between two managers about internal sales

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Solution Summary

The solution details the situation of internal buying and the related ethics as one departmental manager attempts to procure components from another internal division at a discount based upon the fact that the divisions are owned by the same parent company.

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The case involves ethics in that 'gray' area where nothing is defined with certainty. Both parties have a valid point. On the one hand, part of Michael's job is to lower costs by procuring semiconductors at a bargain so long as quality isn't compromised. In addition, Lynn must make a profit for his division by selling at adequate prices.

For one, I feel that it is possible for Lynn to shore up profitability even while selling at a ...

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