The Barometer always gets questions that begin this way, “I have a friend. . “ Psychiatry and ethics have identity transfers in common. So, another story begins . . . A good friend of mine works for a local company that deals with a number of vendors. This company does approximately $100m in revenue per year. The company has no formal ethics policy regarding gifts. In fact, the unofficial policy is “get what you can.â€
 My friend often receives gift baskets of food/chocolate/fruit; he has always shared these with the entire office and warehouse staff. Recently he placed their phone contracts out for bid to three vendors (the current vendor and two others). These contracts are worth $500k aggregate over the past three years. His current vendor (low-cost leader with corresponding minimal customer service) sent him a video game console and games along with a note thanking him for their business over the previous three years. This game console is worth about $500. Because of the service issues and ups and downs in the relationship, he is not going to choose the current vendor for renewal. but, he wants to know if he can keep the game console.
Don’t we all love stuff? It is one thing to accept some tasty treats and spread the wealth around. But, there is no way to share the game system. On the other hand, this is really cool stuff.
Even without an ethics policy, our “friend” has established one: there have been limits, the stuff was out in the open, and the wealth and calroies were spread hither and yon. And those calories do spread, mostly yon. Our “friend” has a line to draw.  The reason he asks this time is because his conscience is pricked. Even without a formal ethics policy, the amount offered is so large as to cause him to worry that it may be perceived as a “head turner” for purposes of making a decision on the vendor. is it a gift for past business? Or, is it a bribe for future business? Tough call, but the latter seems to be the more likely interpretation.
Our “friend” needs to think through the forthrightness of accepting a gift when he is about to reject the giver. His company needs to adopt an ethics policy. The vendor needs to think through the stuff approach to business. Anyone can heap stuff hither and yon. Customer service is the dull and demanding part of customer retention. However, when push comes to shove, we all, after all, creatures of the market. We want and need the best value for our dollars spents. Neither cookies nor game consoles will make up for spotty service and less-than-optimal relationships.
About mmjdiary
Professor Marianne Jennings is an emeritus professor of legal and ethical studies from the W.P. Carey School of Business at Arizona State University, retiring in 2011 after 35 years of teaching undergraduate and graduate courses in ethics and the legal environment of business. During her tenure at ASU, she served as director of the Joan and David Lincoln Center for Applied Ethics from 1995-1999. In 2006, she was appointed faculty director for the W.P. Carey Executive MBA Program. She has done consulting work for businesses and professional groups including AICPA, Boeing, Dial Corporation, Edward Jones, Mattel, Motorola, CFA Institute, Southern California Edison, the Institute of Internal Auditors, AIMR, DuPont, AES, Blue Cross Blue Shield, Motorola, Hy-Vee Foods, IBM, Bell Helicopter, Amgen, Raytheon, and VIAD.
The sixth edition of her textbook, Case Studies in Business Ethics, was published in February 2011. The ninth edition of her textbook, Business: lts Legal, Ethical and Global Environment was published in January 2011. The 23rd edition of her book, Business Law: Principles and Cases, will be published in January 2013. The tenth edition of her book, Real Estate Law, will also be published in January 2013. Her book, A Business Tale: A Story of Ethics, Choices, Success, and a Very Large Rabbit, a fable about business ethics, was chosen by Library Journal in 2004 as its business book of the year. A Business Tale was also a finalist for two other literary awards for 2004. In 2000 her book on corporate governance was published by the New York Times MBA Pocket Series. Her book on long-term success, Building a Business Through Good Times and Bad: Lessons from Fifteen Companies, Each With a Century of Dividends, was published in October 2002 and has been used by Booz, Allen, Hamilton for its work on business longevity. Her latest book, The Seven Signs of Ethical Collapse was published by St. Martin’s Press in July 2006 and has been a finalist for two book awards.
Her weekly columns are syndicated around the country, and her work has appeared in the Wall Street Journal, the Chicago Tribune, the New York Times, Washington Post, and the Reader's Digest. A collection of her essays, Nobody Fixes Real Carrot Sticks Anymore, first published in 1994 is still being published. She has been a commentator on business issues on All Things Considered for National Public Radio.
She has served on four boards of directors, including Arizona Public Service (1987-2000), Zealous Capital Corporation, and the Center for Children with Chronic Illness and Disability at the University of Minnesota. She was appointed to the board of advisors for the Institute of Nuclear Power Operators in 2004 and served on the board of trustees for Think Arizona, a public policy think tank. She has appeared on CNBC, CBS This Morning, the Today Show, and CBS Evening News.
In 2010 she was named one of the Top 100 Thought Leaders in Business Ethics by Trust Across America. Her books have been translated into four different languages. She received the British Emerald award for authoring one of their top 50 articles in management publications, chosen from over 15,000 articles.
Personal: Married since 1976 to Terry H. Jennings, Maricopa County Attorney’s Office Deputy County Attorney; five children: Sarah, Sam, and John, and the late Claire and Hannah Jennings.
