Consider how, from an ethical standpoint, you would react in each of the following cases.
(a) A sales representative telephones you to say that he has left the employment of a supplier from whom you are currently buying large quantities of a component. He knows the price you are paying and states that his new company can undercut your present price by 20 per cent. You have been dealing satisfactorily with your present supplier for a number of years.
(b) You are negotiating on a one-to-one basis with a small machine shop to carry out operations on 100,000 items to relieve capacity in your own production department. You inadvertently mention that you are very pleased with the price and that, subject to discussion with your own production manager, the sub-contractor is likely to receive an order. He then asks, ‘Why not let me increase the price by another £1 – 50p for me and 50p for you?’
(c) You can buy cheaper from an overseas supplier, but you know he has starvation levels of pay and the loss of the local order will cause unemployment.
(d) You have negotiated and signed a contract with a supplier. When you arrive home, you find that an expensive piece of jewellery has been sent anonymously to your wife.
(e) You mention to the sales representative of a steel stockist that you are proposing to build an extension to your home. He says, ‘Why not let us supply you with the steelwork at cost price?’
(f) On two occasions, a supplier has delivered sub-standard components that can nevertheless be used. You telephone the supplier’s production manager to complain. He says, ‘Don’t write about it because it might affect a promotion I’m expecting. Let’s keep it to ourselves and I will put it right’.
(g) You inform a potential supplier that, on average, your company buys 100,000 units of a certain item each year and, as a result, obtain a substantial quantity discount. You know that the average usage is only 50,000 units.
(h) A supplier asks you, in confidence, to give details of competitive quotes, saying that he will beat any price offered and ‘that must be good for you’.
(i) A supplier offers you a bribe, saying, ‘We do exactly the same for your boss and he has no worries’.
(j) One of your subordinates tells you that, last night, he took his family to a football match and had the use of a hospitality box (including dinner), provided by a company that you know is seeking a share of your business.
