Question

PROBLEM 1-9.

Ethics and Code of Conduct [LO 5]

Search the Web for the Code of Conduct for Sears Holdings Corporation (the parent company for Sears and Kmart). For each of the following cases, indicate whether it is allowable under the Code of Conduct. In your answer, cite specific language in the code.

a. A purchasing agent is negotiating with two suppliers A and B. The agent tells supplier B the bid price offered by supplier A in an effort to get B to lower its bid.

b. An employee is running for city council and distributes materials supporting his campaign via company email.

c. A purchasing agent accepts samples of various clothing items.

d. An employee writes an anonymous blog on her experience at Sears that provides insights into the company’s strategy for success.

Answer 1

a. No, this is not allowed under the code of conduct of SHC. This is because as per SHC’s code of conduct employees are required to protect that information that is confidential as well as non-public. In this case the bid price is confidential and so the purchasing agent should not disclose it. Specific language from the code – “prevent unauthorized disclosures of confidential information”.

b. No, this is not allowed. The employee is using company resources and this is forbidden as per SHC’s code of conduct. To quote from the code – “associates may not use company time or resources to support personal political activities”.

c. No, this is not allowed. SHC has a strict anti-corruption policy and its employees are not allowed to “receive or agree to receive any kickback or bribe, including money or its equivalent, gifts, favors….”

d. Yes, this is allowed. Insights into company’s strategy for success are public information about the company’s operations and the company’s strategy is available for public through its various reports like annual reports. To quote from the code “you must not disclose proprietary and confidential information”. Information about strategy is neither proprietary nor confidential.