Reference no: EM131312989

George McGinnis, a marketer for Wingate Paper, is jogging with Tom Cagle. Tom is a long-time distributor for Wingate Paper and has a good relationship with the company and its owners. George asks Tom about the status of the Orkand contract. Tom explains that he has nearly sold them on going with Wingate for all of their paper products needs, both administrative and production. George remarks that the Orkand contract could not have come at a better time. He has never seen Wingate squeeze the numbers so hard. He also states that he is counting on his bonus to pay his daughter's tuition. Tom admits that he needs this contract badly, as well, to pay off a bank loan.

In Wingate Paper's warehouse, George is talking with Kyle Cross, a new distributor. Kyle is impressed with Wingate Paper and informs Goerge that he is going after the Orkand account for Wingate and to establish himself in the business. He remarks that he knows Orkand is interested in Wingate Paper products. Kyle implies that he might win the account in part to help Orkand increase its minority contracting but that he does not want the decision to be based solely on that factor and is therefore offering them a 10 percent discount. George questions if Kyle knows that Tom Cagle has also been pitching Orkand. Kyle acknowledges that Tom is a good competitor, but he is confident of success because of the low price he offered.

A week later, Tom is complaining to George that he may lose the Orkand account because of Kyle Cross. Tom questions why George did not tell Kyle that the Orkand account was his, and George explains that Kyle is a legitimate competitor. Tom warns that Orkand may question the way Wingate Paper operates because of the two very different price quotes, but George reminds Tom that he cannot tell distributors what to charge.

Orkand has given Tom one week to meet Kyle's price, but Tom claims he cannot do it and tells George that he needs his help. First, Tom requests a price break, but George explains that he has to give all the distributors the same price. Next, Tom asks for a portion of the design fund for distributors, and George refutes this possibility, stating that the fund is only used for developing a product. Tom then wants part of the ad budget, but George explains the budget is already committed. Frustrated, Tom acknowledges that he understands why George wants to do business with Kyle, but he threatens to take away his other accounts from Wingate Paper. George tries to salvage the situation, but Tom argues that George should remember about all the times he pushed Wingate Paper instead of other brands to help George get rid of inventory or promote a new line. George tries to express his appreciation for Tom's help, but Tom does not want appreciation, he wants money. He tells George to find a way to help him, if he really cares. George contemplates his decision.

Questions

1. What are the main ethical issues, if any, in the Wingate Paper case? Describe each ethical issue.
2. What are George's options?
3. How do the three levels of moral development relate to George's situation?
4. What would you do?