Compensation and Ethics - 1802 Words

Running head: COMPENSTATION AND ETHICS Compensation and Ethics Compensation and Ethics The Sparklin’ Automotive Company has decided to adapt the balanced scorecard in order to measure its business performance more adequately. Recently the President of SAC set an e-mail with several questions regarding tying performance compensation to the balanced scorecard. This document will review the ethical dilemmas that may arise due to the implementation of incorrect performance measures. It will also review how SAC can avoid these issues as well as what performance measures should be implemented. Compensation and Ethics The Sparkiln’ Automotive Company has recently changed the method that they use to track the overall†¦show more content†¦The second area of concern is the customer perspective. One area of focus within this area should be the retention of our customers (M.U.S.E., n.d.). This can be measured using our sales records and customer databases as well as referencing the information within our NPS. Another area that should be considered is the area of customer satisfaction. The NPS system gives us a strong insight into how our customers feel about the products and services that we provide to them. The higher the score is the better. Our employees should be compensated for keeping this score at a high level. The internal business perspective takes an in-depth look into the structure of the company and how we conduct business (M.U.S.E., n.d.). One goal within this area is to improve the efficiency of our products. The more efficient our product becomes the happier our customers are. This performance measure is often determined by reviewing the number of products that are returned with quality issues (M.U.S.E., n.d.). Another goal at SAC is to keep our product cost as low as possible. This is achieved by turning over our inventory often. The last area we must keep in mind is the area of learning and growth perspective. One goal within this area is to create an innovative culture (M.U.S.E., n.d.). The knowledge that our employees possess is our greatest asset. If it is used properly SAC will be able to produce new products.Show MoreRelatedEthical Financial Reporting And Disclosure Quality893 Words   |  4 Pagesthe relationships between the director overlap and financial reporting quality, and for that purpose, analyzes the compensation measurement system and how it tights to performance (p. 183). The researcher also focuses on the impact of audit committee on the reporting and disclosure. 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