Assume that Charlie then tells Iris, “I have a friend who runs a placement service and can find you exactly the right person for this position. Once you have the job posted, you can have them help you fill it. If they find you a great candidate and the placement is made, I will split the finder’s fee with you.”

Iris knows that her company may pay as much as half a year’s salary for the placement services needed for such a hire. Charlie’s friend is likely to pay him a substantial finder’s fee if Iris awards the placement contract to them and someone gets placed. If she can get a good employee and a little extra money on the side, everyone wins.

However, Iris is not comfortable with such an arrangement, and she’s pretty sure it’s against company policy.

If this comes to pass, is Charlie doing anything illegal? Is Iris?

What’s ethically wrong with Charlie’s proposal?