Business Ethics at Acme Corporation
Mr. Frank Garcia was a new salesman at Acme Corporation. At Acme Corporation the corporate culture was top down or hierarchal and Garcia quickly learned that because of the competitive nature of the medical supplies industry few mistakes were tolerated. One of his very first sales clients was Mr. Otis Hillman, the buyer for Thermocare, a national hospital chain. The sale was a huge success resulting in a $500,000 contract for Acme and an additional bonus of $1,000 for Mr. Garcia. Months later, Mr. Garcia called on Mr. Hillman of Thermocare to increase the existing contract by some $500,000. The deal went through and Garcia received yet another bonus and a letter of achievement from the vice president of Marketing, however the deal cost Acme Corporation a pair of season tickets to the Cubs. On another occasion, Mr. Garcia approached Thermocare for an additional contract worth $750,000, once again Garcia was successful, but this time in return for the favor Acme had to pay for a trip to Cancun Mexico for Mr. Hillman and his wife. Lastly Acme Corporation decided to host a thank you party in Las Vegas for all of their best clients. The clients were informed that, if there is anything that they needed that they should let their salesperson know. That very night Mr. Hillman from Thermocare approached, Mr. Garcia and suggested to him that he was interested in attending an “adult entertainment club”. Garcia informed his boss, Amber about his client’s request. Amber was very laid back and replied, “we will take care of it”, however Garcia was a little concerned and asked “but what will Acme say if this gets out?” to which Amber responded, “Don’t worry, it won’t.”
Taking a closer look at this scenario with Thermocare, Acme Corporation is faced with a few ethical issues. Firstly, we can look at the ethical issue of bribery. It is clear to see that in order for a sale to be successful, Garcia had to bribe Mr. Hillman...
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