Hospitality from a Vendor
I
Paul Ledbetter is employed at Bluestone Ltd. as a
manufacturing engineer. He regularly meets with vendors who
offer to supply Bluestone with needed services and parts. Paul
discovers that one of the vendors, Duncan Mackey, like Paul, is
an avid golfer. They begin comparing notes about their favorite
golf courses. Paul says he's always wanted to play at the
Cherry Orchard Country Club; but since it is a private club,
he's never had the opportunity. Duncan says he's been a member
there for several years and that he's sure he can arrange a
guest visit for Paul. Should Paul accept the invitation?
Discuss.
II
Paul accepts the invitation. He, Duncan, and two other
members have a very competitive, but friendly, 18 hole match.
Paul is teamed up with one of the other members, Harvey.
Although Paul does not normally bet money in matches, Duncan
and the others persuade him to play for $3.00 a hole ("Just to
keep things interesting"), along with the losers buying drinks
for the winners. Paul and his partner win 5 holes to their
opponents 2, thus winning $9.00 each. While they are having
drinks Duncan says, "I think it's only fair that Bob and I get
a rematch. What do you say, Paul? You can be Harvey's guest on
Guest Day next month." Should Paul accept the invitation?
Discuss.
III
Paul accepts the invitation. The match is closer this time,
but Paul and Harvey win $3.00 each. Soon Duncan and Harvey
nominate Paul for membership at Cherry Orchard. The membership
committee approves, and Paul is invited to join the country
club. Paul accepts, thus beginning a long golfing relationship
with Duncan.
Gradually Paul overcomes his resistance to betting on the
golf course, and the stakes eventually grow somewhat larger.
Although Duncan occasionally bests Paul, the upper hand is
clearly Paul's. In the subsequent years Paul does not keep
close track of his overall winnings, but he realizes that, all
told, he has won several hundred dollars from Duncan.
Meanwhile, Duncan is still one of the vendors with whom Paul
interacts. Does this pose any ethical problems? Discuss.
IV
Bluestone's vice-president of manufacturing calls a special
meeting for engineers in her division who deal with vendors.
She announces: "I've been told by the president that we have to
make some cutbacks in the vending area. We're going to be in
real trouble if we don't get more cost effective. So, I want
each of you to do a review--your targeted cutback is 20% If
your unit deals with 10 vendors now, cut it back to 8, and so
on. Give me your recommendations--with a brief rationale by the
first of next week."
Paul next discusses the problem with the 2 other engineers
in his unit who deal with vendors. They have to recommend the
elimination of 2 vendors. Should Paul bring up his golfing
relationship with Duncan? Discuss.
V
Paul mentions his golfing relationship with Duncan. He
raises the question of whether this compromises his
objectivity. The other engineers reassure him, pointing out
that they, too, have formed friendships with some of the
vendors and that each of them will just have to do the best
they can at objectively assessing the situation. As the
discussion continues, it becomes more and more worrisome to
Paul that, if he were to be objective about it, he would have
to recommend Duncan's elimination. Should he tell the others
that this is what he is thinking, or should he let them take
the initiative? [This way, either they would recommend two
others for elimination--thus sparing Duncan--or perhaps both
would recommend Duncan and it would not be necessary for Paul
to recommend against his friend.] Discuss.
VI
Paul lets the other two engineers take the initiative. They
both recommend that Duncan be eliminated. Paul says nothing in
opposition to their recommendation. The group decides to think
about it overnight and make its final recommendation the next
day.
Paul and Duncan are scheduled for a golf match later that
same afternoon. Since Paul and Duncan are good friends, Paul
decides he should tell Duncan about the bad news he is likely
to receive soon. Duncan is understandably upset. He points out
that he has done his best for Bluestone all these years, and he
has always been pleased with what he thought was a good working
relationship--especially with Paul. Finally, he asks Paul what
he said to the other engineers. What should Paul say?
Discuss.
VII
Paul tells Duncan that he did not oppose the recommendations
of the other two engineers. He reminds Duncan that he had to
try to be objective about this: "We all talked about how hard
it is to deal with this since friendships are involved. But we
agreed that our basic obligation has to be to do what is best
for Bluestone. Friendship should not be allowed to overturn
good business. So, hard as it was, when I tried to be objective
about it, I couldn't really disagree with their
recommendations."
As Paul painfully explains his position, Duncan's face
reddens. Finally Duncan furiously explodes, "I don't believe
this! What kind of friend are you, anyway? Didn't I get you
into Cherry Orchard? And how good a golfer do you think you
are, anyway? How do you think you've won all that money from me
over the years? You don't really think you're that much better
at golf than I am do you?"
Discuss the ethical issues that you now think this case
raises. Would you now like to reconsider any of your earlier
answers?