In our current situation, Joe has a lot of things to consider. It is the time for discussion of Bill’s new contract. Joe should think about his friendship with Bill. Joe has got only two answers to this invite, either he agrees to invitation or decline. Joe should have considerations of the outcome of accepting the invitation or turning it down. Since its time for negotiation, it would be unethical for joe to go out with Bill. Joe has created a catchy conflict of interest.
By using rational model, it can assist him in making a decision. Joe should look at merits and demerits of going out with Bill. Until the negotiations are undertaken, conflict of interest will arise if Joe goes outing with Bill. He should wait until negotiations are settled. Joe should decline the offer and keep everything professional. He should convince Bill that until all is resolved, they will have to keep everything professional. (Schwartz, 2005, p. 86)
Ethics is all about making right and wrong choices. Joe should have considered ethics before befriending business associate. “The values of Ethical Theories.” (Schwartz, 2005, p. 70)
Gaining knowledge of significant business ethics theories is advantageous. This experience enhances moral perspectives and provides sound foundation on life’s approach. It helps in making sound decisions in professional and personal life. Joe has broke ethics by befriending a business associate. Due to this, Joe will hardly make unbiased decisions.
A universal ethical standard doesn’t exist. A theory that best supports how I think about what joe should have responded is the universal ethics theory or deontology. There is a global standard applicable in all situations. To be right or wrong within an action depends on the fulfillment of our duty. Joe decided to decline Bill’s offer it’s his duty to ethical behavior, to employees, and to the company. I can also identify functional perspective; all the stakeholders could benefit.
Joe has a duty and responsibility towards the UWEAR company to succeed in such business contracts with Peninsula hotel. Joe should have a clear mind to win the deal with peninsula hotel without being affected by the conflict of interest. The dentology theory ensures he has duty and responsibility towards UWEAR company and to secure it to succeed.
Another situation is that joe should cut the contract renewal with the peninsula hotel. The main reason for backing out of the contract renewal is that if joe offers Bill another price cut UNWEAR company will be hurt. UNWEAR group will be loose in the long run because they will not benefit from off sales and more layoff to compensate for price cuts. In other situation, Joe should use his friendship with Bill to secure a contract renewal that will beat Threads4U which has offered10% price cut to Peninsula hotel. (Sunley, 2011, p. 75)
Joe has built a healthy friendship relationship with Bill and should use this to compete with Threads4u. The trust between them should secure a contract with UNWARE. Also, UNWARE has 50% of regional sales with the hotel chains.
The best solution in this situation is that joe should discuss contract renewal and Threads4U 10% cut price with the management team and come up with fairgrounds to compete for contract renewal with Threads4U.
Schwartz, M. S. (2005). Universal Moral Values for Corporate Codes of Ethics. Journal of Business Ethics, 59(1-2), 27-44. doi:10.1007/s10551-005-3403-2
Sunley, R. (2011). Linda K. Trevino and Katherine A. Nelson: Managing business ethics: Straight talk about how to do it right. New Jersey: John Wiley ; Sons. The International Journal of Management Education, 9(2), 83-84. doi:10.3794/ijme.92.res