Question

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.

Answer 1

I

Duncan is a supplier from whom Paul makes procurements. So there’s a potential for corruption in an friendship relation. All aspects considered, however, I do not see why not. Duncan is a prospective good contact for Paul. There are many prospects at the golf club. And he has a right to his private life & his sport. However, he should be aware of the probable conflict of interest. There is no cause to bother about anything else, however, he ought to be alert about risks.

II

Apparently playing for money is unlawful. But this doesn’t seem to avert everyone from doing it, unless Paul has real hesitations about gambling. If he does, then definitely he should not accept. What he has to be careful about is getting too acutely into debt, either financially / thru friendship, with Duncan. At this stage, he might shield himself by reminding Duncan from time to time that their relation is essentially golfing, which will not impact Paul's business decisions.

III

Paul has no reason to worry he is putting himself in a compromising circumstance with regard to the funds. However his seemingly close companionship with Duncan might compromise his decision with respect to contract awards, thus, he'd better look cautiously at his business transactions with Duncan. Perhaps he might have another individual in his workplace look over some of his contract judgements, just to ensure he's not letting anything slip by because of his camaraderie. And maybe he should inform his boss of his golfing relation, so that there is no appearance of any deceptiveness. And perhaps Bluestone Ltd. regularly reviews its contract practises, so Paul can safely think that such reviews would identify any issues. In any case, if Paul is prudent enough he would make it clear to Duncan that their relation is purely golfing & nothing in the way of business deals can come of it. But competing vendors might raise a doubt of conflict of interest. Mere camaraderie minus financial connection is however at best a weak ground for making conflict of interest allegations stick. Perhaps he should ensure that his boss is aware of his gaming relation, so he can allot Duncan's business to another contract officer, if he so wishes. If his superiors approve of the sport relation, & Paul is okay with it , there is no reason to suspect any issue before one arises.

IV

Its now essential to cut back on suppliers & the engineers must decide upon which ones will be dropped. At this juncture there’s a potential issue as Paul might be expected to be partial towards Duncan. The other engineers should be informed about Paul's golfing relation with Duncan. Were Paul not to reveal the relation & then participate in the cut-back verdict, he may be in a spot of either having to vote against Duncan, or encounter the possibility that his favorable vote might be questioned someday.