Question
You are a manager in a manufacturing company that produces electronic devices. One of your key suppliers, who provides a crucial component for your products,
You are a manager in a manufacturing company that produces electronic devices. One of your key suppliers, who provides a crucial component for your products, has been experiencing financial difficulties. They are struggling to meet their financial obligations and are at risk of going out of business. If they were to close down, it would severely impact your company's ability to produce and fulfill customer orders.
The supplier approaches you and asks for an extended payment term to help them stay afloat. They assure you that they will continue delivering the components, but they need your support during this challenging period. However, granting the extended payment term would strain your company's cash flow and financial stability. It could also potentially jeopardize relationships with other suppliers and affect your overall production capabilities.
Consider the various stakeholders involved, the ethical principles at play, and the long-term consequences of your decision.
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