1. When Does Client Entertainment Cross the Line?

Topics: Ethics, Business ethics, Utilitarianism Pages: 7 (1962 words) Published: October 5, 2010
Executive Summary
In this article, Bob Carlton, the CEO of an uprising firm OptiMotors faces the music of permitting his sales force to entertain potential business prospects at the strip club. This report investigates the ethical implications of such sales practices and how effective leaders should respond.

The unrelenting business today, forces organizations to update and fine tune every aspect of their performance to fight for their share of the market(Quinn, 2010, p.4). In order to maintain profit, sales personnel have been spending extravagant sum of money on gifts, meals or even night entertainments like visiting the strip clubs. According to Brooks(2008, p.16), unsuccessful lavish customer wooing can be a waste of time and money but unethical when it works.

Analyzations of the four commentators
The under-mentioned chart summarise the observations of the four experts who shared their view on this case study (Mobley & Humphreys, 2006, p. 38-42):

John Brown
1) Galen's tendency of entertaining potential business at Red Ruby.

2) Client entertainment crosses the line not when expenses is too costly but when the method undercuts the message the organization wants to transmit on its principles.
Katherine Frank
1) Strip clubs attributes to mutual-bonding between men

2) Support Galen' proposition of excluding Joan Warren from the "Red Ruby" outing.
Das Narayandas

1) Galen's discriminatory approaches.

2) Galen's outdated sales method.

3) Galen action as if he was peddling a commodity.

4) Blames Bob for the wrong hiring decision.

5) Galen's negative attitude and behaviour towards changes.

6) Vision of company unclear.

7) Red Ruby's unnecessary expenses.

8) Respect April firm stand on morality.
Denise Rousseau

1) Denying women the opportunity to earn a living comparable with their contributions and abilities can lead to sex discrimination.

2) Risk of losing clients due to the inadequate sales tactics.

3) Galen's sales method created far more cost than benefits.

John and Denise shared the same idea of suggesting Bob to spend time laying out the rules and guidelines for OptiMotors to help bind staff to their duties as according to deontology or the "duty" or "rule" ethics. According to them, Bob should show leadership qualities and re-train the sales team to be in line with the organizations guidelines. (Mobley & Humphreys, 2006, p. 38 & 44) Katherine, on the other hand, had a different point of view. With her past experience, she said strip clubs may attribute to the mutual-bonding between men due to the slightly aberrant environment. The stress relief from the presence of women who knew them and the ego-boosting nature of the interactions helps them to talk freely. She supported Galen’s proposal of excluding Joan Warren at the Red Ruby Club sales discussion e, as her presence would greatly affect the dynamics of the meeting. (Mobley & Humphreys, 2006, p. 40) Das supported John’s comments that Galen’s selling methods are behind times adding that personal selling and sales have become more scientific rather than manipulative. He reasons that client entertainment makes the product seem like a commodity. Das criticize Bob for making the wrong hiring decision initially by just looking at Galen’s sales figures disregarding how he achieved it. He further argued that the trips to the night club are unnecessary as Galen may be fulfilling his own pleasure at the expenses of the organization when he practises the similar theory of “invisible hand” of maximizing one’s self interest (Micewski & Troy, 2007, p.18). He suggests Bob to take leadership and re-training the sales force in line with the company’s values. (Mobley & Humphreys, 2006, p. 42)

Identification of Ethical Dilemma(S)
Bob faces the dilemma whether he should allow Galen to continue with his sales “custom” of bringing potential customer to the strip...
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