In chapter 4 we reviewed the forces that can affect distribution systems. One of the forces was ethical - where the hospitality channel of distribution is faced with ethical and unethical forces that continue to influence product availability and prices.

Review this case study:

You are the 33-year-old Chief Executive Officer of a major hospitality corporation, a position you have held for only two months. The organization was "going sideways" (not growing). You were brought in to energize the firm and get it moving forward. In the two months, you've been in office, you have reviewed all existing contracts the company has with outside suppliers and service agents ( distributors, auditors, advertising agencies, etc.). You make it known to your staff that, upon proper notification (in compliance with the agreements), you want to "go to bid" in all the areas for which you have current contracts. The contract with your advertising agency is up at the end of the year. A few days before your birthday (November), you receive a noticeably handsome cutlery set (steak knives, carving knives, butcher knives, boning knives, bread-slicing knives, sharpeners, peeling knives, and more). It's a birthday gift from the advertising agency whose contract you will be putting up for bid next month (December). The incumbent agency will be one of the bidders. You don't know the precise value of the gift, but you estimate it at about $200. The card says, "Happy Birthday to a valued client. Many happy returns." The card is signed by the president of the agency.

After reading the case study, answer the following questions:

What do you do? Provide two possible options. Is there any other information you would like to have before acting? Do you think people have the same definition of what constitutes unethical behavior? Why or why not?