【Answers】
41 Calculating the maximum discounts that sales personnel are permitted to offer
The analysis of costs and revenues from different products would give details of the profitability of each range of products
and so would assist the marketingdepartment in calculating the maximum discountsthat sales personnel are permitted to
offer. This type of costing analysis would not help in differentiating the technical features from those of competitors and
would give no information about socio-economic groups who might buy the products.
The marketing department is concerned with sales and so would have no interest in determining production bonuses.
42 Esteem Esteem needs are immediately below self- actualisation in Maslow's hierarchy of needs.
43 Obey the law, and conduct themselves with honesty and integrity and avoid engaging in any activity where their
The key principles contained within a Code of Ethics include a commitment that the directors andemployees of a company
will obey the law and any applicable regulations, and conduct themselves with personal interests interfere, or appear to
interfere with those of the company honesty and integrity; and they will avoid engaging in any activity where their
personal interest interferes, or appears to interfere with those of the company.
Another of the principles in a Code of Ethics should be that the company will respect the rights of their customers,
suppliers and competitors, and deal fairly with them.
Sometimes dealing 'fairly' in this way may mean that a company accepts a lower profit in the short term than
it could by acting less ethically. For example, a company could increase its profits, by reducing the price it pays to its
suppliers. However, such a course of action would not be ethical if it results in hardship for the supplier.
The other companies in the sector may not have a Code of Ethics, and may be acting unethically. So simply maintaining
the same standards as them may not help a company to act ethically.
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