Question

Ethical Situation: What Would You Do?

On a sales call on one of your company's best customers, the purchasing agent smilingly tells your salesperson: "I had a special arrangement with the salesperson who used to call on me from your company. Every time I placed an order, the sales manager arranged a special gift for me. Are you going to continue that policy?"

Answer 1

It would be ethical to report the purchasing agent's comment to the appropriate person within the company, such as the sales manager or compliance officer. This is because it appears that the purchasing agent may be expecting or implying that a bribe or kickback will be provided in exchange for placing orders with the company, which is illegal and unethical.

Another option would be to decline to continue the previous salesperson's practice and to make it clear that the company does not engage in such behavior. Additionally, it would be appropriate to clarify company's code of conduct and ethical policies.

It is important to note that the company has an obligation to ensure that all employees and business partners follow laws and ethical standards. And, any action that could be interpreted as illegal or unethical behavior should be avoided and reported to the appropriate person.

Answer 2

When faced with an ethical dilemma like expecting gifts for orders, it is essential to adhere to company ethics and law, and tactfully explain your company's policy to the customer. Justifying unethical behavior, like theft, by citing a higher purpose is unacceptable. Consultation with superiors and adherence to ethical codes are advisable to navigate such conflicts.

Step-by-step explanation:

When facing an ethical dilemma in the business environment, such as the scenario where a customer expects continued receiving of gifts in exchange for placing orders, integrity and adherence to the company's ethical guidelines must prevail.

Such a practice might be construed as bribery and could be illegal, compromising both personal and corporate integrity. It is important to handle this situation tactfully by explaining your company's policies on gifts and incentives, ensuring that any gestures of goodwill comply with both law and ethical business practices.

Similarly, the concept of appeal to a higher authority should be handled with caution. An employee justifying the theft of money for a seemingly noble cause still constitutes unethical behavior and could set a dangerous precedent.

It is crucial for individuals to be guided by a code of ethics that respects the rule of law and the principles of right conduct, regardless of the complexities or pressures of a specific situation.

In any such ethical conflicts, it is advisable to consult with a supervisor or an ethics committee within your organization to ensure that one's actions are in alignment with company policy and ethical standards. Resorting to critical thinking and seeking counsel can aid in navigating these difficult situations and making decisions that you can uphold with confidence and integrity.