Part 1

View this problem scenario A to learn more about Bill and Joe’s relationship. This scenario provides key information in helping formulate answers for assignments in Phases 1 and 2.

You are having a lunch meeting with Bill Bateman, the chief executive officer (CEO) of the Peninsula Hotel chain, and Joe Smith, the sales rep for UWEAR. During the meeting, Bill raises the topic of the upcoming contract renewal.

“I’m glad you brought that up, Bill,” Joe says. “We’re really looking forward to working with you again this year. I was happy that we were able to reach an agreement last year, and it’s been a pleasure working with you and your team.”

Joe, like most of the UWEAR and PALEDENIM employees, is feeling the pressure to perform, fearing cutbacks and layoffs because of the merger. Sales have been down, and profit margins are very slim. Last year, Joe was reprimanded when he signed the contract with Peninsula Hotels because the price that he offered was so low. However, he had no choice because his competitor, Threads4U, was also a very shrewd bidder, and Joe would have lost the contract otherwise.

“Well, it has been good working with you too, Joe. I’ve really enjoyed our friendship, and the contract was very beneficial for our company,” Bill continues, “The reason I wanted to talk about the contract today is because I just got a call this week from Samantha over at Threads4U. She’s offering to beat your price by 10% to win back our business. What are you going to do to counter that offer?”

Answer the following:

• What should Joe do in this situation?
• What ethical theory supports how you think Joe should react to this situation?
• Why would you use this theory?
• What might others with a different view than yours say in this situation?
• How would you refute those opposing perspectives?
• Is there a compromise or creative solution to this problem? If so, what is it? Why is it feasible?