If there are ethical breaches within an organization, the profits for the organization are impacted (Venturesome & White, 2013). Explanation of Business Situation Companies purchase maintenance agreements from service vendors to help resolve any issues in a predictive, cost effective manner. The company pays the vendor a certain amount of money each year and the vendor will fix or replace any defects in the system. The service personnel are measured by utilization. When a service person is working on a customer problem, the arrive person will identify the time spent on the service ticketing system.
The service ticketing system has the ability to produce reports on the efficiencies of the service people. If the service team does not have the desired utilization, over time there will be reductions in staff to preserve efficiencies. Possible Ethical Issues There is a possibility for service personnel to spend some more time working on a problem, or falsely entering time to maintain a high degree of utilization. If this occurs, eventually the additional time is allocated to the cost f the maintenance agreement, and the profit margin is lower than expected.
The service manager will see reports on the service ticketing system and then scrutinize the time spent for maintaining the customer. Eventually, the truth will come out that the service personnel was spending too much time or falsely documenting their time. Some companies lack the quality control mechanisms needed to find any breaches in ethics. In that case, the company can lose significant profit margins.