Ethical codes seek to set standards of fair and reasonable behavior throughout the supply chain, or in the attitude towards the employee or customer.
Application: Application of the law is complicated by reality, because as the case of Frank and Nathan shows, a business is by nature made up of many different individuals. Moral and economic values differ from person to person within a business situation. A business is a large organizational structure, and within this structure, there may be individuals who are inspired to behave unethically for any number of reasons—here, we are not given Frank’s reasons, but he is clearly going back on his word and breaking his promise about payment, which is unethical. He has his own reasons. Many of these reasons have to do with the goals of the individual. For example, if a person views monetary gain as their main purpose, they may be willing to put ethical issues aside in order to reach their goal with maximum efficiency, to reach their short term goals and gain advantage. They may not pay attention to the code of ethics at all, and I think this is something Frank did in the case.
Conclusion: One potential obstacle to a strictly legal solution is that, despite the prevalence of scientific and then panoptic programs throughout the twentieth century, corruption has continued to be a strong force in the business landscape including restaurant supply and services. Part of this may be habitual: much of the graft that goes on in this environment is accepted as a sort of ritual that is basically harmless, or “honest graft.”
Issue 1: Frank is certainly not showing appropriate management in his conduct towards a valued customer who is supposed to receive a discount. Then again, it could also be argued that Nathan was not being ethical either, because he did not double check, get a paper