Case 1. STATE UNIVERSITY BOARD OF REGENTS: What Am I Living For?

Mr. Francisco Bundoc is a successful businessman who operates a chain of restaurant in Central Luzon. He resides in the capital city of his province and is the current president of the local chapter of a civic organization. He has been recently appointed member of the board of regents of a state university representing the community as prominent citizen. The university has campuses in various towns of the province where he lives.

In the meetings held monthly by the board of regents, Mr. Bundoc acted as the champion of the students cause. When the university president, Dr. H.C. Agao, proposed an increase in tuition, Mr. Bundoc opposed it, even tried to personally convince the other members of the board to do the same. The proposal was rejected by a majority vote.

Not accustomed to accepting defeat, Dr. Agao devised a way to make Mr. Bundoc submit to his wishes. He befriended the wife of Mr. Bundoc and insinuated to her that she can do business with the university through catering services. Mrs. Bundoc agreed and soon she became the sole food caterer to most of the meetings and parties held at the university. The arrangement proved to be a lucrative source of income for Mrs. Bundoc.

Every time that she had the opportunity, she told her husband the importance of maintaining good relationship with Dr. Agao.

Soon, Mr. Bundoc's stand as opposition in the board softened. He became more accommodating to the proposals presented by Dr. Agao.

Question:

Is there anything wrong with the actions of the three personalities in this case? Elaborate your answer.