Bausch & Lomb Case: Pressure To Perform

Individual Case Analysis: Bausch & Lomb: Pressure to Perform Student’s Name Course Name Instructor’s Name Date 1. The ethical failures occurred in the case & how B&L's actions affect its key stakeholders * Due to the soaring receivables, the enterprise had made from their sales, auditors investigate the company and discovered that sales of Ray-Ban sunglasses were booked to most Southeast Asian distributors, however, these products were never shipped to them. However, the inventory was diverted towards a large warehouse (Simons, Sapir, & Reinbergs, 1999). In the process of maintaining the legitimate sales separately, forged sales were recorded on the bad an sheets which were special invoices that contained instructions of how the operations staff could route commodities to the secret warehouse. * The enterprise wanted to cover up this operation and created forged documents of delivery notes and legitimate paperwork that were signed by the clients of the company. In other instances, some customers participated in the fraudulent scheme as they were willing to store the diverted sunglasses. In other instances, the forged delivery orders from other clients were forged without their knowledge (Simons, Sapir, & Reinbergs, 1999). * In both the United States and Hong Kong, forgery is a huge federal crime. The ADP managers of the company wanted to cover the rising accounts receivables and periodically cleared customer accounts of their old balances while simultaneously crediting them with fake exchanges of merchandise that were documented by a trail of untrue paperwork (Simons, Sapir, & Reinbergs, 1999). The book-cooking and forgery scheme was eventually blown when several ADP workers sent a letter to Rochester. In October 1994, the warehouse was located with almost half a million Ray-Bans that were estimated at a value of 12.5 million dollars. * The actions of the company were damaging to its stakeholders whereby the forgery of information infringed on the rust the customers had on the organization. The company did not effectively disclose all information concerning the product. As for the shareholders, the company misled the shareholders concerning its financial condition and also its prospects for future sales and revenue. This damaged the viability of the stocks of the company. The distributors also suffered the same consequences as the customers due to the unethical actions of the company. Many distributors had to send back their additional stock to Bausch & Lomb. 2. Who in the company is to blame and why? How could they have prevented the incidents from occurring? * The ADP managers involved in the Hong Kong Scandal should be mostly blamed for this issue. In a management position, it is essential to set a high ethical standard for the employees to emulate and follow. The managers, however, focused on convoluting and proceeding with an illegal scheme that was damaging to the company. The managers should have the ability to stand by the basic ethical principles and focus o...