What are the ethical considerations

Reference no: EM131828885

Steve Santana works for a pharmaceutical manufacturer. Steve's company is pressuring his division to increase sales. Presently Steve is working on closing a big deal with the Danson HMO. This sale would be huge for the company. The sale would allow Steve to reach not only his sales goals but also his entire sales division's sales quota. Rob, the divisional sales manager and Steve's boss, is understandably anxious about making the sale to Claire Manford, Danson's purchasing agent. In their conversation about Claire, Rob suggests Steve go around Claire and talk with Danson's chief medical adviser. This might help close the sale. Steve is against this suggestion. Rob then suggests they place Claire on their consulting board, which pays a nice fee to board members. Rob feels this would help close the deal. However, Steve is against this idea. After meeting with Rob, Steve calls on Claire at her business. During their visit, Claire mentions her son is learning disabled and she is the new fund-raising chairperson for an information and referral center for people with learning disabilities. Her fund-raising group will need $100,000 just to get the center started. As Steve is getting ready to leave, Claire also says that she likes Steve's proposal but his prices seem a little too high. That afternoon Steve visits with Rob about his sales call on Danson and the conversation with Claire. When Rob hears about her interest in the learning disabilities center he immediately suggests that their company make a $10,000 donation. Rob feels this would greatly increase the probability of making the sale. Again, Steve is reluctant and thinks this is bad business. However, Steve can see Rob is very nervous. At the end of their meeting Rob says, "Steve, I rarely let someone in your position handle such a big sale. But I am going to leave this up to you. It is your responsibility."

Questions

1. What are the ethical considerations, if any, in this case?

2. At what level of moral development are Rob and Steve operating in this business situation? Explain your answers.

3. What would you do if you were Rob?

4. What would you do if you were Steve?

Reference no: EM131828885

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