Discuss the ethical implications of such a policy

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Reference no: EM131287347

Suppose you are the confectionary buyer for a regional chain of grocery stores. The store policy is to charge a "substantial" slotting fee for the placement of new items. Slotting fees were originally designed to cover the costs of placing new products on the shelves, such as adjustments to computer systems and realignment of warehouse and store space.

Over the years, these fees have become larger, and they are now a significant source of revenue for the chain. A local minority-owned manufacturer of a popular brand of specialty candy would like to sell to your chain, but claims that the slotting fee is too high and does not reflect the real cost of adding their candy. Discuss the ethical implications of such a policy. What should the chain do?

Reference no: EM131287347

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