Joe and Bill are quite close as Joe describes on our way to Bill’s hotel. Joe and Bill met when Joe secured the contract for the Peninsula last year. Since then, Bill and Joe have become close professionally and socially. The close relationship between Joe and Bill does not qualify as a conflict of interest. According to Dragomir (2017), a conflict of interest arises when a person’s best interest is no longer in the best interest of the organization to which the person owes loyalty. Joe has a responsibility towards the organization, and his relationship with Bill is yet to affect it. Bill has referred Joe to three other hotels that gave their uniform contracts to the company.
The relationship appears suspicious, but I do not think they are yet to break any ethical boundaries. Bill has not asked Joe for any favors yet as much as he invites Joe and his family to stay on his yacht and his hotel. Bill gave Joe an entire case of high-end cabernet when Joe mentioned that his wife loves expensive wine. It can be interpreted as a bribe, this can be seen as a bribe, but Bill gave Joe the gifts after they had negotiated the contracts. In the next meeting, if Bill will want Joe to reduce the price of the uniforms in a way that it will lead to a loss for the company, then the gifts can be seen as bribery. So far, Bill does not expect anything from Joe when he welcomes him to his hotel and yacht. As for the business connections, Bill only expects Joe to meet with the new clients in his hotel after connecting them.
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The utilitarianism theory places the locus of right and wrong on the consequences of the action such that when an action produces positive results, it is considered ethical (Ferrell & Fraedrich, 2015). Joe’s relationship with Bill might seem suspicious and unethical to others, but the relationship has brought new business opportunities for the company and made everyone happy. Joe takes into account Bill’s interest when doing business with new clients by conducting meetings at Bill’s hotel, and Bill refers new clients to Joe.
However, Joe has to navigate the relationship with Bill carefully. Business and friendship do not sometimes mix as they both require loyalties. Bill considers Joe a close friend and they vacation together. If Bill’s business were in trouble, Bill would go to his friends, including Joe for help. Bill might ask Joe to give him more time before he can settle the bill for the uniforms. Bill can also take his business elsewhere in case the two have a disagreement that has nothing to do with the company.
References
Dragomir, V. D. (2017). Conflicts of interest in business: A review of the concept. Accounting and Management Information Systems , 16 (4), 472-489.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases . Nelson Education.
