Walter von Stolzing is the Innsbrck-based controller of Beckmesser GmbH, a rapidly growing manufacturer and marketer of

Question:

Walter von Stolzing is the Innsbrück-based controller of Beckmesser GmbH, a rapidly growing manufacturer and marketer of Austrian food products. Stolzing is currently considering the purchase of a new cost management package for use by each of its six manufacturing plants and its many marketing personnel. There are four major competing products being considered by Stolzing.
Pogner 1-2-3 is an aggressive software developer. It views Beckmesser as a target of opportunity. Every six months Pogner has a three-day users' conference on the Costa del Sol. Each conference has substantial time left aside for 'rest and recreation'. Pogner offers Stolzing an all-expenses-paid visit to the coming conference. Stolzing accepts the offer believing that it will be very useful to talk to other users of Pogner software. He is especially looking forward to the visit as he has close relatives living near Marbella.
Prior to leaving, Stolzing received a visit from the president of Beckmesser. She shows him an anonymous letter sent to her. It argues that Pogner is receiving unfair favourable treatment in the Beckmesser software decision-making process. The letter specifically mentions Stolzing's coming 'all-expenses-paid trip to Marbella during the depths of Innsbrück's winter'. Stolzing is deeply offended. He says he has made no decision and believes he is very capable of making a software choice on the merits of each product. Beckmesser currently does not have a formal written code of ethics.
Required
1. Do you think Stolzing faces an ethical problem as regards his forthcoming visit to the Pogner's users' group meeting? Refer to Exhibit 1.4. Explain.
2. Should Beckmesser allow executives to attend users' meetings while negotiating with other vendors about a purchase decision? Explain. If yes, what conditions on attending should apply?
3. Would you recommend Beckmesser develop its own code of ethics to handle situations such as this one? What are the pros and cons of having such a written code?