Katherine Gillespie, a new buyer at Goalie, Inc., was reviewing quotaons for a tooling contract submited

by four suppliers. She was evaluang the quotes based on price, target quality levels, and delivery lead

me promises. As she was working, her manager, Paul Cox, entered her office. He asked how everything

was progressing and if she needed any help. She menoned she was reviewing. quotaons from suppliers

for a tooling contract. Paul asked who the interested suppliers were and if she had made a decision.

Katherine indicated that one supplier, Neca, appeared to fit exactly the requirements A. Figure Inc. had

specified in the proposal. Paul told her to keep up the good work. Later that day Paul again visited

Katherines office. He stated that he had done some research on the suppliers and felt that another

supplier, Funko, appeared to have the best track record with A. Figure Inc.. He pointed out that Katherines

first choice was a new supplier to A. Figure Inc. and there was some risk involved with that choice. Paul

indicated that it would please him greatly if she selected Funko for the contract. The next day Katherine

was having lunch with another buyer, Greg Smith. She menoned the conversaon with Paul and said she

honestly felt that Neca was the best choice. When Greg asked Katherine who Paul preferred, she

answered, Funko. At that point Greg rolled his eyes and shook his head. Katherine asked what the body

language was all about. Greg replied, Look, I know youre new but you should know this. I heard last week

that Pauls brother-in-law is a new part owner of Funko. I was wondering how soon it would be before he

started steering business to that company. He is not the straightest character. Katherine was shocked.

Aer a few moments, she announced that her original choice was sll the best selecon. At that point

Greg reminded Katherine that she was replacing a terminated buyer who did not go along with one of

Pauls previous preferred suppliers.

QUESTIONS:

1. What does the Instute of Supply Management code of ethics say about financial conflicts of interest?

How does it apply or not apply to this scenario? (5 marks)

2. Ethical decisions that affect a buyers ethical perspecve usually involve the organizaonal

environment, cultural environment, personal environment, and industry environment. Analyze this

scenario using these four variables. (10 marks)

3. What should Katherine do in this situaon and why? (5 marks)