Question: 1. While looking to negotiate a contract with a steel transport supplier (trucking company) the Purchasing Manager (PM) for a steel company accepted a weekend

1. While looking to negotiate a contract with a steel transport supplier (trucking company) the Purchasing Manager (PM) for a steel company accepted a weekend private plane flight to a rented cottage for all expense paid weekend of fishing and relaxing. This trip was paid for by the steel transport supplier that the PM was negotiating with. That carrier was one of only two that served the areas required by the steel company, and was the only available carrier for some of those destinations. The service by that steel carrier was quite good. The same type of trip was offered by the same steel carrier to the Logistics Manager (LM) who declined. The logistics manager (LM) challenged the purchasing manager on the ethics of accepting gifts from suppliers, especially during contract discussions. The PM simply replied that the steel carrier is pretty much the only available carrier, and that the price was barely negotiable due to the lack of competition. Both the PM and the LM report to the same Vice President who is new to the firm. What should the logistics manager do?

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