Ethical Dilemma

Date: Nov 3, 2017

Unfavourable Pricing System

An airline’s pricing system is indispensable. People are endowed differently in terms of economic power and some may be willing to pay more to travel more comfortably in first class. In addition, discounts for those who pay in advance are common in all businesses. Paying in advance helps reduce planning problems that are associated with urgent booking and allocation of flights. This helps to reduce costs. People who travel regularly bring a lot of revenues to their preferred airline. They are given discounts to keep them loyal.

The pricing system is unfavourable. For instance, it discriminates people who cannot afford first class. Their seats are squeezed to each other and they do not get the kind of amenities that are enjoyed in first class. The system discriminates those who do not fly often. They usually pay more than some passengers. It also discriminates those people who have an urgent need to fly, and who could not have paid in advance. In addition, many people manipulate the system or use connections to fly free of charge.

If I overheard the person in line getting a better room rate than myself, I would question the circumstances of the different rates. I would urge them to consider bridging any large differences in room rates. If the reasons given for different charges are satisfactory, such as consideration of a return customer, I would still ask them to close any large differences. I would also urge them to grant me a better offer if I became one of their return customers.

Many customers plan for a flight well in advance. They request for a discount if they pay in advance. Those who frequently fly to attend official meetings, conferences or business occasions, utilize these opportunities to request for a good discount plan. The management of any airline fears that the company may lose business, if such potential clients get a better package from competitors. Some passengers use connections in order to pay less or nothing at all.

Ethical Dilemma in Contracting

The addition of $250000 into the budget is not planned for by the client. The client does not know yet. If the representative team of professionals is aware of these additional costs, they may refuse the deal. The success of this sale will earn me a nice bonus as well enable me reach my yearly quota. If the sale is not successful, I will lose my job. In this situation, I will either forego personal benefits and the job, or let the client close the deal and unfairly meet unplanned additional costs.

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The best thing is to attempt to prevent both scenarios from happening. First, I would talk to my company’s top management, and make them understand likely benefits and costs. The advantages of closing the sale are numerous. For example, I would personally meet my quota, get a bonus and keep my job. The company would make a good sale that is profitable. There are disadvantages too. For example, the customer would realize that there are additional costs to meet and would be dissatisfied with the services we provide. The client may decide to outsource software from elsewhere in the future. This may lead to long-term loss of potential revenues.

When the management decides to proceed with the sale, I will make them aware of my decision to alert the client. I will choose to forego the job and related benefits. The client may decide to explore other options in the market. If the client still wants to proceed with the contract, I may keep my job. The management may, however, feel obliged to fire me, especially if it feels that the disagreement is a conflict of competing interests.

The client may decide to withdraw from the contract if additional costs will create an extra burden. If I have not lost the job yet, I may lose it now. The management may decide to keep me hired, even after the client has cancelled the contract. If the client still finds that the contract price and the additional costs make the best package that the market can offer, the contract may be continued. This may promote chances of keeping the job or being called back after being fired. In addition, the client may find that I am honest and convince me to join them.

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