Michael Jackson was just arriving back from lunch when his office phone rang. It was his

wife, Cinderella, calling from home. Cinderella told Michael Jackson that FedEx had just

delivered a package addressed to her. The package contained a beautiful clock, now sitting

over the fireplace. In fact, Cinderella said, $$the clock looks absolutely beautiful on our living

room fireplace.$$ Thinking the clock was from a family member, Michael Jackson asked who

sent the present. She said she did not recognize the name$$the clock was from Mr$.$ Daniel

Buah. Michael Jackson immediately told Cinderella that she had to repack the clock because

it was from a supplier who had been trying to win business from Michael Jackson$$s company.

They definitely could not accept the clock. Cinderella was very upset and responded that the

clock was perfect for the room and, besides, the clock came to their home, not to Michael

Jackson$$s office. Because of Cinderella$$s attachment to the clock, Michael Jackson was

unsure about what to do$.$

a$.$ What should Michael Jackson do about the clock?

b$.$ What does the Institute of Supply Management $($ISM$)$ code of ethics say about

accepting supplier favors and gifts?

c$.$ Why do you think the supplier sent the clock to Michael Jackson$$s home and addressed

it to his wife?

d$.$ Does the mere act of sending the clock to Michael Jackson mean that Mr$.$ Daniel Buah

is an unethical salesperson?

Case $2.$ The Case of the Secret Discount

Dr$.$ Smith, a researcher at Swampland University Medical Center, needed an expensive piece

of complex research equipment, which would include a computer and related software. He

based his specs on a device he was familiar with, manufactured by As Specified Enterprises,

and sent his requisition to Purchasing. As their regulations required, Purchasing issued a

"request for bids" for an $"$As Specified Enterprises or equal" device.

On the morning of the day bids were due to be opened, Dr$.$ Smith called Mr$.$ Buylow, the

Director of Purchasing, to say that he had received a bid from another company, Alternate

Technologies, and that he would walk it right over.

When he arrived, it was discovered that he had received an information copy of the bid and

that the original had already been received by purchasing. There was a letter attached to Dr$.$

Smith's copy, which in part said:

I am prepared to offer you, at no additional cost, one additional software package.

However, this offer will not be shown on the bid which has been sent to the purchasing

department.

According to an attached price list, the value of the additional software package was $$18,500.$

When the bids were opened, it was found that the Alternate Technologies price was

substantially higher than the price bid by As Specified Enterprises and, sure enough, it made

no mention of the extra software offered.

Dr$.$ Smith recalled that he had been visited by the Alternate Technologies sales representative

during the bidding period, who admitted that his bid would probably be high. But the rep

expressed confidence that, if Dr$.$ Smith were to do a proper technical evaluation, the Alternate

Technologies equipment would be selected regardless of the high price.

As Dr$.$ Smith related this story, his face clouded over and his eyes widened.

$$Does this sound like a bribe to you?$$ he asked Buylow leaned back and pondered what he

would do next.

a$.$ Is there an ethical problem here?

b$.$ What additional information does Buylow need, if any?

c$.$ What are his options?

d$.$ What advice would you give Buylow?