Ch. 2 p. 64-65

EYK2-3) Ethics Case Great Cake is a large bakery known for its quality boxed cake products. Its motto is We Use Only the Best Ingredients. Ralph Sands, the purchasing supervisor, is responsible for ordering the ingredients for all the bakery products. He is being considered for a promotion based on his proven ability to purchase ingredients at the best price available.

The cost of all the ingredients has risen substantially over the past few months. Sands decides to purchase 2.5% of the ingredients at a lower quality than Great Cakes normally uses because the cost is significantly less. Without relying on the companys test kitchens, he believes this substitution will not be noticed by the customers and the lower cost will counterbalance the increased costs of the other ingredients.

Sands explains this decision to his friend, Lynn Pall, the companys accountant, one day at lunch. He also tells her that he does not intend to inform management of the inclusion of the lower-quality ingredients in the bakerys products.

Required

What ethical considerations arise from Ralph Sands decisions? What problems face Lynn Pall because of his actions?