"A Matter of Ethics"
Definition: Ethics are basic values and moral priciples that guide the behavior of individuals and groups.
Is the Price Right? Suppose an international compnay is the direct purchaser of many products it sells. Because of its size, it is also able to negotiate gret prices from suppliers. For example, it has been able to get low prices on raw materials for its suppliers.
Economies of Scale. In the case of clothing, this large international company visits mills around the world to get the best deal it can on fabric. Its supplier of jeans, for example, benefits because it is able to get a great price on the fabric.
Lower Than Low Prices. As a result, jeans that used to sell for $30 are now selling for under $10. The company's competitiors cannot keep up with such low prices for jeans because the manufacturers pay regular prices for the fabric.
22 comments:
I believe it is ethical for a large business to use its clout to secure low prices on raw materials. Its clout is directly related to the work that the company has done over the years to be able to reap benifits depicted in the article. Its not the larger companies fault that the smaller companies can't keep up. Over time, if the smaller company is run correctly, it will also reach the point and amount of power that the large company has. Regardless in a business, right or wrong doesn't really matter.
I think its ethical for a business to pay little amounts for their supplies. They are buying in bulk after all, it just makes the most sense. Why do people shop at places like Costco or BJ's? Because its cheaper. Its a dog eat dog world out there and no one is going to care if a smaller company can't afford to do what other larger companies can.
in a sense it is fair for businesses to use there power to there adantage partially because they had to buuild up and get to the point there at. But as far as ethically coreect its not proper at all. For one thing they hve more pwer and can get themselves cheaper goods and sell it for less than competitors. Anothee luxury for them is they can acutally buy the supplier in stead of going through a process like a smaller business. Which makes it harder for a smaller business to succed and puts alot of pressure on them. it almost seems that they are drowining out all the little guys with there power and size, what there doing may seem like its fair from there point of view but really from an ethical stand point it not right at all.
james deal
I think, it is ethical, because there is a big competition out there, so all the companies try to sell as many products as possible. There are many different ways, some companies choose a way that's written in the article, some have to choose a different way to sell its products. It depends on the company's size, and the strategies.
-Balázs
I think it can go both ways.It is good because consumers get the lowest pricse.but it can also be a bad thing because small Business can go out of Business.I dont think its unethic but i think they should meer some where in the middle.
Daniel Boku
I think it is ethical for large businesses to take their power and buy products for their suppliers, and then sell their raw materials for cheaper prices. I mean, if a business has a lot of money and they still have money left to build on, then I think they should supply their suppliers for a low price. A smaller business can't do this because they won't have enough money to keep themselves up to date with other smaller businesses like them.
Amanda Clark
I think it is ethical to be allowed to buy everything in bulk for a cheaper price. It is called business and everyone has to make their money somehow. The small business has found someway to survive and may one day become a large business itself. The large business has probably worked hard to get where it is today, to be able to afoord to go out and find the cheapest prices. So yes I think its ethical to be able to buy and sell products at its cheapest prices.
No it is not ethical. I think that because the smaller business run out of business because of the bigger business. The bigger businesses get the raw materials at low prices but then their stuffs come out cheaper then what they payed for. Meaning the smaller business don't have the money.
-Iris Trejo
I dont think it is ethical. reason being is because if a big business is goin to be getting so many products why have small compaines.which means the small businesses would go out of bussines.
-Juan Martinez
Yes, it is ethical. That is what business is, this is how businesses compete. One company has to do something to get more customers and this way they do because the jeans are so cheap. If it is legal, which I think it is, than there is nothing wrong with it. The competitors have to do something to bring up their business.
Tenbit Melesse
I think its ethical for a business to pay little amounts for their raw materials.In this case both the consumer and the companies are buying in bulk. Small businesses can't really keep up with the big businesses so these things appear to be unethical. Ethics aren't important in business.Smaller companies then grow into big business, they then are capable of these benefits also.
-Sam Henderson
I believe it is ethical for large business to use it's clout because larger companies do have more money than smaller. Obviously, bigger companies need cheaper products so their will be more costumers in the long run. Bigger companies need products that they do not have to pay more for, becuase there may be so many of the stores.People do go to department stores because they have better values and packs of things for cheaper prices. Overall, it is the amount of money the company may have it's not smaller companies fault if they sell products sepretly for a higher price range that is why the clout for bigger buisnesses make sense.
Yes it is ethical for a large comapny to use its clout secure low prices on raw materials for their suppliers. The big company is working to get lower prices, it is not like they are cheating or anything. Over a long period of time these companies have grown and devolped to make themselves big and wealthy. It is not their fault that the smaller companies are no compettion. The big company has a true advantage in the marketplace. I understand how the smaller companies feel but they have to buck up and face the real world. It is ethical to allow big companies to buy in bulk and sell for cheaper prices. These companies are doing whatever they can to make money. Overall I do think it is ethical to do what some of these big companies are doing.
Alexandra Smith:)
From my prospective i think it is right because it makes it cheaper for the customers.And it doesnt matter if the the little companies cant afford it...Because the bigger the company the more fabric and manufactured pants you get to sell to the customers. But i kind of understand why it wrong because it can put the little companies out of bussiness.
I think that it is ethical for big businesses to use this method. Some say it is unfair for the smaller businesses, but the matter of the fact is that it is a compettetion. I also like this idea because when they do this, I can purchase my clothes for a cheaper price. I dont see anything wrong with trying to stay ahead of the game. If the smaller businesses feel they are being unfair, then they should step their game up.
I believe that it is ethical for large business to use clout to secure low prices on raw material. Large business buy raw material and sell it for cheaper because they sell by large quantity. People who go shopping at Cosco and Resteraunt Depot expect lower prices becuase there buying in products in mass quantity. Competition plays a big role in business, which is effective on ethical views.
- Saif mirza
skye wrote the last comment :)
It is ethical because it makes lower prices for the comsumers. Many people have to buy things in bulk so they can afford it, so therefore it is ethical. Other people who can afford the high prices of the small businesses will buy stuff from there. It has always been this way and many small businesses have survived. That is why i think it is ethical for larger businesses to have lower prices.
-erin
I think its ethical to a certain limit where a large company can use its clout to get the best deals. Partially, because that large company has earned the power to do such a business deal. However, the company should not abuse its power and harm the economy. There should be some sort of restriction on this type of business. If smaller businesses had that oppurtunity, the ethical
question will backfire.
Arsalan A.
I do not believe it is ethical for a large company to charge more for their jeans than how much it costs to make them. Large companies should charge less because it is their job to pass the savings to their customers. Also if their customers found out, the company would surely lessen their prices. This shows that they know what they're doing is wrong, and not at all the best thing for the consumer. Large companies have a right to save in production of their goods, but the savings should also be extended to their customers.
i think that it is fine for the big business tyo sell their product at a lower price. It is a competition and the bigger business just have a better idea of what to do. The bigger business have proboly worked there way up to sell them. The smaller business just have to wait unyil they are more noticable. The bigger business can sell there products lower because they have wqorked their way up to do that.
Lisa Watts
I think that it is ethical for a large business to use its clout secure low prices on raw materials for its suppliers because of all the competition in the business world, their using this strategy to be successful. The small companies obviously have a huge disadvantage but the larger businesses are doing what is going to make them wealthly and the smaller companies and just going to have to deal with that. It's not a matter of being 'fair' or not, it's more of a sense of 'How can I make my company more successful?' People don't go to a brand name store and get something that $500, they try to get the item at a cheaper price by going to the big department stores. The large companies are not going to care if the smaller companies can't keep up, there only going to care about themselves.
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