Responses

#1

In the workplace today, there are decisions that must be made that could impact an organization in a positive or a negative manner. It is important that leaders take caution prior to making any determination or choice that can be misinterpreted or is unfair in any way. Soltes points out that nearly all decisions all made in a swift manner based on prior experiences, and are not given an adequate amount of time to reach an ethical decision or to consider the best solution(Soltes,2017).

A conflict could arise in numerous scenarios in both personal and professional relationships, and these conflicts could be positive or negative (Editorial Board, 2015). A conflict of interest could occur when a person takes advantage of their position to make a personal gain of any kind that could interfere with the expectations of their organization (www.shrm.org, 2014). Although Joe and Bill have a relationship outside of business matters, their relationship is not an ethical breach. Joe and Bill have built a personal relationship; however, they have been able to separate business and pleasure.

Bill’s gifts are not a form of bribery, but are gifts to appreciate the friendship that has formed between himself and Joe. The care theory supports this view, as it focuses on ethical factors that support successful and meaningful relationships (Editorial Board, 2015). The relationship between Bill and Joe is complex, and can be viewed as having ethical issues. Bill and Joe often spend time together with their families on their personal time, however this can be viewed as favoritism or using their relationship to gain an unfair advantage when conducting business.

Conflicts of interest can be minor in some cases, and very complicated in other cases. It is important to carefully analyze one’s actions or potential outcomes of any decisions that can be viewed as unethical. If there is any way that someone can view your action or relationship as a conflict of interest, it is important to determine the guidelines in your organization so that the decision-making process is fair to all parties. In some organizations, there are guidelines and potential conflicts of interest that have been identified, and can be managed if reported to management or to the human resources department. When there is a possible conflict of interest, it is best to seek assistance to determine the best method to address the situation at hand.

#2

 

Joe and Bill have developed a friendship over time. Regardless of the amount of time they have known each other  a conflict of interest has developed. A conflict of interest results whenever an individual has personal gain over a decision made. (Dictionary.Law.com)

Bill and Joe are gaining from each other.  Bill in a way is bribing Joe to get a cheaper uniform price. Joe underbid on the uniforms but instead of underbidding by 5% , he could have underbid a little less and his company could have saved money.

When you have a friendship in some cases  you are willing to save a friend money at the expense of the company you work for. This is especially the case  when Bill is persuading Joe with a case of expensive wine after their first meeting, Joe is persuaded with fancy hotel stays and yacht trips with the family.  Joe’s vision has become cloudy. It appears that Bill’s gifts are a form of bribery based off of the influence Bill has had over Joe from, these gifts that can be viewed as unethical.

“Egoism Is the theory that one’s self is , or should be, the motivation and the goal of one’s actions.” (Leadership and Ethical Decision making  ch2)

I found on the muse site a useful scenario ”A purchasing agent accepts trips and gifts from a vendor and then selects the vendor's products for purchase by the company.”  In return this would mean that Bill is going to choose Joe’s company as a source for uniforms. Because of Bill’s persuasion, Joe has underbid on price so Bill would select his company. In sales underbidding may be common,  but typically a close friendship is not behind it.  Joe is making his products cheaper because he knows that continuing to do so he  will receive future yacht trips, and hotel stays with his family. As proof, he mentioned how much his children enjoyed the pool. He is choosing what is in the best interest for himself and the family, and not the savings of the company. This is an ethical breach.

 Joe’s company has gained three other businesses to supply uniforms. During business meetings with other companies Joe brings his clients to Bill’s hotel restaurant . Bill is gaining the extra business and Joe is reaping the benefits of their close “friendship”. As I said earlier, during the time they have known each other, their relationship could have developed into an actual friendship, but it is definitely a conflict of interest.  Joe is doing what is best for him. Joe’s company is not gaining from the friendship that he has with Bill.

http://dictionary.law.com/.aspx?selected=292

Leadership and Ethics. (2015). Leadership and ethical decision making