The job of people who work in advertising agency Media departments is to recommend media selection, programming, and plans that are in the best interest of their clients. The media plans they recommend to their clients often cost millions of dollars per year. Agency media people must be absolutely objective when recommending media plans to their clients, at no time can they allow themselves to be influenced in any way by sales incentives, gifts, trips etc. sometimes offered by media salespeople. You are the President of a large advertising agency in Toronto. This morning you arrived at work to hear people in your media department all abuzz about an event that took place last night hosted by the Sales department of one of Canada's major television networks. You then learn that about 500 people were in attendance, that there was a live group, several open bars and buffet style food all provided free of charge. Every twenty minutes when the band took a break a well-known Toronto media personality took the stage to draw names of agency media people in attendance to award prizes. The prizes included cars and lavish trips. You then learn that one of your senior media people won an all-expense paid trip for two to Japan. The value of that trip is worth roughly half of his annual salary. You call him in to your office to inquire and confirm that it's true. You then discover that your media person was inebriated when he accepted the prize. You are extremely upset because you know that once word of this spreads through the advertising industry your media department may appear to be compromised and biased in favour of the television network that hosted the event and your clients will no longer be able to trust the media recommendations your agency makes. This is a very serious situation. However, entertainment of this type is not unheard of in the industry and there is nothing illegal about it. Based upon what you have learned about ethical business practices in today's lecture, what if anything would you do about it? What can/should you do to save the reputation of your agency? Would you take disciplinary action against the employee involved, bearing in mind that your company does not have a written code of ethics? Additionally, you want to be careful not to upset the morale of your media department employees. Would you take any action against the television network that hosted the event? What would you do? This is a thinking exercise. Please answer all questions starting in the space below and continuing on the next page as required.