Ethical dilemma:

The ethics of corporate gifts

December 2007

Note that the next dilemma of the month will not appear until February 2008

You are Distributions Manager of a flour manufacturer. It is your responsibility to ensure that customers get their orders on time and in good condition, while also ensuring this is done as economically as possible.

All of the transport services used by your company are provided by subcontractors. One subcontractor delivers locally, another does regional deliveries and a third delivers interstate.

You are happy with the service provided by all of the subcontractors and have good relationships with the people involved - indeed, you see some of these people as your friends.

However, a new company has recently started which could take care of your local deliveries at a significantly cheaper rate than the subcontractor you currently use. Things are tight economically and your company is keen to save money where it can, however, you have not yet made a decision as to whether or not to change to the new delivery company.

Shortly before Christmas the owner of the company which handles your local deliveries pays you a visit to wish you a merry Christmas. You have dealt with him over a number of years and have a good and friendly relationship with him. As a Christmas gift he brings with him a crate of good quality scotch.

At first you are delighted and accept the gift, but later become worried as to whether this was appropriate, particularly in the current circumstances. You also wonder, if you decide to keep the gift, whether you should share it equally with other staff in your company.

Ethical questions:

  • What are the issues?
  • Who are the stakeholders?
  • What should you do?
  • What would you do?

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