Question: There is a business that spends over $12 million a year on transportation costs. The President of that company has a former college roommate who works for a national transportation company. During a dinner conversation with his former roommate, the President learns that most transportation companies have large expense budgets for entertainment of clients. With that information, the President returns to his office and calls a meeting with his National Distribution Manager.
The Presidents asks the Distribution Manager to assemble all of the current freight company sales representatives (20 people) for an important meeting. At this gathering, the President informs the representatives that he would appreciate their cooperation in providing him with specific amenities. Each representative was asked to donate four (4) each tickets or gift certificates to various sporting events, theater performances, dinners, or whatever entertainment events they had at their disposal. They were asked to donate these 4 items every month.
- Why do you suppose that this request was made ? Is it ethical behavior on the part of the President ?
- What would change your opinion on its ethical nature ? What would you have done with the information received if you were the President of that company ?