Ethical Issues At Sportsmax

479 Words2 Pages

DISCUSSION FORUM
UNIT 6
BUS 3304

As a successful retail company, SportsMax is known for its quality sporting goods equipment and excellent customer service. With 100 stores located throughout North America, the company strives to maintain its competitive edge by maximizing sales revenue while keeping costs low. This is where store managers come in. Each store manager is tasked with submitting their estimates of sales revenue, costs, and resulting profit in order to help the company establish its operating budget for the year. Robert Manning, the manager of one SportsMax retail store in Chicago, is currently facing an ethical conflict in regards to his budget submission.

As a store manager, Robert has the responsibility of ensuring that his store meets or exceeds the company's budgeted profit. If he exceeds this profit, he is eligible for a bonus equal to 10% of actual profit in excess of budgeted profit. However, in order to achieve this bonus, Robert might be tempted to overestimate his sales revenue or underestimate his costs. This could lead to inaccurate budgeting and put his store at risk of falling short of the company's expectations. …show more content…

I can do this by emphasizing the importance of honesty and integrity in all aspects of the company's operations. By creating a culture of transparency and accountability, Robert will feel more inclined to provide a budget that reflects his store's true sales revenue and costs. In addition, I can offer incentives that encourage accurate budgeting, such as bonuses for meeting budgeted profit targets without inflating the

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