In: Operations Management
Evaluate the ethical behavior of Manny. Should Manny have called Todd in the first place? Would there have been any problems if Todd had agreed to meet the lower bid price? Identify the parts of the Statement of Ethical Professional Practice (Chapter 1) that Manny may be violating, if any.
The statement that Manny would normally have taken the first bid without hesitation implies that the bid met all of the formal requirements outlined by the company. If Manny’s friend had met the bid as requested, then presumably Manny would have offered the business to his friend. The motive for this was friendship and possibly carried with it past experience in dealing with Todd’s company. Perhaps there was some uncertainty in Manny’s mind about the low bidder’s ability to execute the requirements of the bid, especially since the winning bid was from out of state.
If there was some legitimate concern about the winning bid and Manny was hopeful of eliminating this concern by dealing with a known quantity, then it could be argued that the call to Todd was justifiable. If, on the other hand, the only motive was friendship and Manny was confident that the winning bid could execute (as he appears to have been), then the call was improper. Confidentiality and integrity in carrying out the firm’s bidding policies are essential.
The fact that Manny was tempted by Todd’s enticements and appeared to be leaning toward accepting Todd’s original offer compounds the difficulty of the issue. If Manny actually accepts Todd’s offer and grants the business at the original price and accepts the gifts, then his behavior is unquestionably unethical. Some of the IMA’s standards of ethical conduct that would be violated are listed below:
Confidentiality
1. Keep information confidential except when disclosure is authorized or legally required.
2. Refrain from using confidential information for unethical or illegal advantage.
Integrity
3.Refrain from engaging in any conduct that would prejudice carrying out duties ethically.