Question
After graduation, you obtain a staff of a position with a human resources department of a medium-size company. Your job duties include conducting ethics training
After graduation, you obtain a staff of a position with a human resources department of a medium-size company. Your job duties include conducting ethics training workshops and monitoring the organization's ethics assist line.
The organization's code of ethics emphasizes four values. Truth, Respect, Honest Communications, and Integrity. This month's workshop was about integrity. The 50 participants engaged in several small group activities, and you were very pleased with their discussions.
The following day you notice a message on the ethics hotline. "I wanted to point out some possible hypocrisy with our code of ethics during yesterday's workshop," the message began, "but I didn't want offend Beth, our vice president of sales. According to our code of ethics, it is a violation for any of our purchasing agents to receive the gift from a supplier. But our salespeople are allowed to other entertainment gifts to potential customers. The sales department can give the same gifts that our purchasers cannot receive. That's not integrity, that's hypocritical double standard. The company doesn't trust our purchasing agents to receive the gifts that our salespeople give to their clients."
You receive company records and note that the organization's code of ethics for buyers is a standard adopted from the Institute for Supply Management (ISM), the trade association for purchasers.
Next, you approach Beth about this concern. "Yep, I encourage our salespeople to give clients free tickets to sporting events and art performances at the Civic Center," Beth informs you. "We're supporting community activities. Plus, these gifts work, that's how we get a lot of new business and take care of our existing customers. All of our competitors do this. None of our employees personally gain from this. If my sales employees can't give gifts, we would lose a lot of business. Lost sales means lost commissions. Before you know it, our best salespeople will quit and get jobs with our competitors. If our revenues decline, it will be your fault!" Nonetheless, the ethics hotline issue still bothers you because the company does seem to have a double standard: one for purchasers and another for the sales department. If it is ethical for sales employees to give these gifts, then shouldn't it be ethical for company buyers to receive them from their suppliers? But then again, the industry association, which encourages best practices, is opposed to all gift giving.
What shou you do?
- Maintain the double standard
- Change the policy and not let salespeople give these gifts
- Change the policy and allow purchasing agents to receive these gifts
- Something else (if so, what?)
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