Joe Smith a sales representative is one of Tom Tramlins top people in sales for UWEAR and PALEDENIM. Bill Bateman the CEO of the Peninsula Hotel chains met with Joe through Tom through the last contract and is meeting with him again to discuss the renewal of the contract for supplying uniforms for their employees at the hotel. Joe has become good friends with Bill and his wife and have received many perks since the last signing of the contract, like being invited to go on their yacht, social events, and staying at the hotel which is very beautiful and has an excellent swimming pool with a waterfall that the kids absolutely love.Joe landed the last contract by pricing the uniforms very low and ended up being reprimanded by the management team for doing so, but if he had not then he would not of landed this client that now makes up 50% of their sales.
During this meeting, Bill informs Joe that he is happy to be working with him on the renewal of the contract and tells Joe that the competitor Threads4U has offered to beat your price by 10% and wants to know what Joe can offer them to keep the contract.Joe knows that there is no way he can bid the making of the uniforms any lower than he did the last time for fear of losing his job and is also worried that if her were to bid any lower that it could cause layoffs and job loss to the people of UWEAR. Joe being desperate to save the contract must consult with the management team so that he can get approval before moving forward with any counter offer with Bill. In the meantime, Joe receives a call from Bill inviting him to go out on the yacht for the weekend with the family.
Joe feels relieved that Bill has called with the invite thinking their friendship has been a little distant lately due to the contract negotiations. What should Joe do about the invitation from Bill? Since the contract is still in negotiations, Joe needs to explain to Bill he is interested and sounds like a great time but needs to speak to the management team before he says yes and make sure that there will not be a problem if you were to go.Since the policy at UWEAR states, that it is nethical to have contact or discuss business with a client that the management team does not approve of. Since this got Joe in trouble last time with management by pricing uniforms lower to win the contract, he should be cautious of his decision. Discuss with Bill your thoughts and tell him you will get back with him as soon as you can, or you could just explain to Bill, that there can be no discussion of the contract they are working on and it only is a family fun day out on the yacht between friends.Joe should analyze the businesses code of ethics, make the decision, and realize what effects his decision will have on all stakeholders, and anyone that will be affected.
How will the decision you make affect stakeholders if the decision you make turns out the way you plan? How will it affect everyone involved if your decision to go with Bill does not go as planned and backfires? Ethical Theory of Joes response to Bill Joe has a duty and this duty is to be responsible and has an obligation to UWEAR, its employee’s, and his family. The theory of deontological is a moral system that focuses on moral duties and rules.By knowing, what our moral duties are and what rules exist, to regulate those duties will help with a decision to go with Bill on the yacht without telling management, or discuss the matter with management and reassure them that is not business related. If Joe decides to go and the discussion comes up regarding the contract, simply explain to him that you value their friendship and it would be wrong if you were to discuss anything that has to do with business. I use this theory because I feel Joe is responsible enough and has learned from his mistakes in the past to not repeat nor put his job in jeopardy.
What might others with a different view that yours say in this situation I feel that everyone has his or her opinions, and in this situation, I feel that Joe really enjoys Bills friendship and is genuine. Others might say it is a conflict of interest but you are your own person and should be able to make your own decisions and knowing how UWEAR might look at it as a bad decision of going on the outing, they should trust you as a valued employee to make the right decisions and not discuss the contract. You are aware of the circumstances that could potentially make you lose your job, so you know what you can discuss and cant.It still should be presented to the management team, that you have been invited to go with Bill on his yacht, and the families were also invited and its nothing more than going out and enjoying a nice day, and to also tell management that you made it clear to Bill that discussing the contract was not going to take place.
Is there a compromise or creative solution to this problem? I feel that a compromise between you and the management team could be discussed, explaining to them that you are capable of keeping friendship and business separate.If by chance they are against the idea of you going out with Bill on his yacht then you should explain to bill it is against the company’s wishes until the contract is resolved. You could also explain to Bill that you would love to go but since the contract is still in negotiations, you must take a rain check and go some other time. Both of the solutions I feel are feasible because you are just being cautious and not wanting to go against the company and possibly losing your job.
Conclusion Should Joe accept Bills invitation without consulting the management team?No, he should discuss this with them and see their concerns since the contract is still in negotiations. If you feel that you could possibly discuss with Bill during this outing regarding the contract and why it is best to renew with them because of their loyalty and quality of uniforms, then express this to management that you would be willing to do so only if the discussion comes up. Joe knows and the company knows that he messed up last time by bidding the uniforms lower than the competitor to win the contract, and resulted in a lower profit margin.He knows that he cannot bid lower that Threads4U, and needs to explain to bill that his job is actually on the line with this contract, and how much he does value their friendship and business and does not want to lose either one.
Could Joe and Bill discuss the contract and come to a solution? Possibly, or Bill has no choice but to go with the competitors price. There are so many outcomes to this scenario but without knowing if the friendship between Joe and Bill is genuine and Bill is not being a friend to Joe for the better of his business it is hard to say what the outcome will be.
