CASE STUDY: FREE LUNCH?

What Are We Going To Do Next?

For the following case study, each student will review the scenario provided below.

Scenario Introduction

This scenario depicts a relationship between a state administrator and a businessman. Dont become too involved in the small details of the scenario, they are only props. What we wish to study are the larger questions concerning their relationship, the idea of mixing business and pleasure, the direct costs and hidden costs involved.

Characters: Charles Rodriques-Director, Bureau of Administrative Services

Scene: Lunch hour in a fancy restaurant. Harry is new in town; at the suggestion of the

state of Chamber of Commerce, he has called Charles and invited him to lunch.

Harry:Im sure glad that you accepted my invitation for lunch. You dont know how hard it is to get started in a new area. My wife and I were pretty settled out West

and she really balked at moving here.

Charles: How did you come to pick our state?

Harry:I was really impressed, Charles with the young and progressive attitude of the people in this section of the country. Right down the line business people,

government, all top-notch I think I made a smart move.

Charles:I see you bought out the Duckworth Paper Company, have you always been in that line?

Harry:Yes, paper, thats my whole life. We handle everything from confetti to newsprint. What do people do around here for recreation anyway?

Charles:Fantastic fishing 15 miles out of Dana Point, you cant pull them in fast enough. Last week I caught 14 haddock. Thought my arm would fall off. And sports this is a great area. We have minor league baseball, university football, and ice hockey.

Harry: Sounds great. Im thinking of buying a 40 footer and sure would like to know where that fishing hole is. (Motions for check) Check please, (to Charles) everything on this card is tax deductible. Sure was a pleasure talking to you Charles. Thanks for the tip on the fishing hole. That was just the excuse I needed to buy that boat.

Two months later (phone rings in Charles office)

Harry: Charlie? This is Harry. Guess what I did? I bought that 40 footer. Its a magnificent boat, twin diesels, the whole works. When can you break free and lead me to that fishing hole?

Well, Im pretty tied up right now, let me see my calendar. OH, Im free next Saturday. How does that sound? Just great, dont bring a thing. I have poles and all. How about if I pick you up at 7:30 Saturday morning?

Charles: Okay, its a deal. See you then.

One month later (phone rings in Charles office)

Harry: Hi Charlie, how you doing? That was some fishing trip wasnt it? What a spot. Im still pulling them out by the dozen. Say, I got a couple of box seats for the Red Sox game tonight. I cant get rid of them and was coming by the state office building. I wondered if you knew anyone who could use them?

Charles: Hey, theyre playing Baltimore tonight and Ryans pitching. Im sure that I can find someone whod put them to good use.

Two weeks later (phone rings in Charles office)

Harry: Hi, ol buddy. Just been down in purchasing and saw where the state put a bid out for 27,000 rolls of Perfecto carbon paper for your automatic billing machines in the Bureau of Taxation. I wondered if the Bureau could possibly use our Excel brand, a competitive product to Perfecto. The price is right and it would do the job mind you, Charles, Im not asking for any special favors, but I think the state could save a few bucks.

Answer the following questions and submit as your CP assignment.

Questions:

1. Has Charles done anything unethical yet? If yes, why and if not, why?

2. What if Charles calls the purchasing agent and mentions the Excel brand? Would this be unethical?

3. What will you do if you are in Charles position? If there ever a free lunch?