Purchasing agent Jim G. Locklear began his career as a retail buyer with Federated Department Stores in Dallas, where he became known for his eye for fashion and ability to negotiate low prices. After 10 years with Federated, he went to work for Jordan Marsh in Boston in 1987 with an annual salary of \(\$ 96,000\). But three months later, Locklear quit that job to take a position as a housewares buyer with JCPenney, so he could return to Dallas. His salary was \(\$ 56,000\) per year; he was 38 years old; he owed support payments totaling \(\$ 900\) per month for four children from four marriages; and the bank was threatening to foreclose on his \(\$ 500,000\) mortgage. \(^{13}\)

Locklear was a good performer for Penney. His products sold well, and he was responsible for the very successful JCPenney Home Collection, a color-coordinated line of dinnerware, flatware, and glasses that was eventually copied by most other tabletop retailers. Locklear took sales of Penney's tabletop line from \(\$ 25\) million to \(\$ 45\) million per year and was named the company's "Buyer of the Year" several times.

However, Locklear was taking payments from Penney's vendors directly and through front companies. Some paid him to get information about bids or to obtain contracts, whereas others paid what they believed to be advertising fees to various companies that were fronts owned by Locklear. Between 1987 and 1992, Locklear took in \$1.5 million in "fees" from Penney's vendors.
Penney hired an investigator in 1989 to look into Locklear's activities, but the investigator uncovered only Mr. Locklear's personal financial difficulties.
During his time as a buyer, Locklear was able to afford a country club membership, resort vacations, luxury vehicles, and large securities accounts. Although his lifestyle was known to those who worked with him, no questions were asked again until 1992, when Penney received an anonymous letter about Locklear and his relationship with a Dallas manufacturer's representative. Penney investigated, uncovered sufficient evidence of payments to file a civil suit to recover those payments, and referred the case to the U.S. attorney in Dallas for criminal prosecution.
Mr. Locklear was charged by the U.S. attorney with mail and wire fraud. Mr. Locklear entered a guilty plea and provided information to the U.S. attorney on suppliers, agents, and manufacturers' reps who had paid him "fees." Mr. Locklear was sentenced to 18 months in prison and fined \(\$ 50,000\). Penney won a \(\$ 789,000\) judgment against him, and Mr. Locklear's assets have been attached for collection purposes. \({ }^{14}\)...............

 Discussion Questions
1. Given Locklear's lifestyle, why did it take so long for Penney to take action? Do you see any red flags in the facts given?
2. A vendor who paid Locklear \(\$ 25,000\) in exchange for a Penney order stated, "It was either pay it or go out of business." Evaluate the ethics of this seller.
3. Do you agree that both the buyer and the seller are guilty in commercial bribery cases? Is the purchasing agent "more" wrong?
4. Many companies provide guidelines for their purchasing agents on accepting gifts, samples, and favors. For example, under Walmart's "no coffee" policy, its buyers cannot accept even a cup of coffee from a vendor. Any samples or models must be returned to vendors once a sales demonstration is complete. Other companies allow buyers to accept items of minimal value. Still others place a specific dollar limit on the value, such as \(\$ 25\). What problems do you see with any of these policies? What advantages do you see?
5. Describe the problems that can result when buyers accept gifts from vendors and manufacturer's representatives.
6. Mr. Locklear said at his sentencing, "I became captive to greed. Once it was discovered, I felt tremendous relief." Mr. Locklear's pastor said Locklear coached Little League and added, "Our country needs more role models like Jim Locklear."15 Evaluate these two quotes from an ethical perspective. Are there any lessons for your credo in Mr. Locklear's experience?