Tuesday, May 25, 2010

How is inviting a future client out to dinner or to a golf game unethical?

I, for one, do not believe it IS unethical. It's part of how business is done these days. Owners and marketing directors of large companies are taken out to dinner all the time. They also receive various other "perks" from companies wishing to do business with them.





Also, just because a company may be satisfied with the working relationship they have with their current advertising agency, vendor or supplier, doesn't mean that other agencies, vendors and suppliers aren't actively trying to steal the business away. Again, that's just the cost of doing business.





I believe it is ONLY unethical if the owner of the company (or the marketing director) insists on receiving some kind of kickback for the privilege of doing business with them. If I was a company looking for someone to do business with, I'd steer away from any organization that openly encouraged bribes.
How is inviting a future client out to dinner or to a golf game unethical?
It is not unethical, as long as you do not beg for that business. Meeting people and getting to know them is part of doing business, as long as you do not directly solicit.
Reply:Taking a future client out for a very expensive dinner could be viewed as an inducement to sign a business agreement. It is more of an ethical breach for the company who is the client than it is for the vendor who is seeking their business. If a company has put work out for bid, they must give each company bidding for the work an equal advantage and judge their decision on the merits and value of the bid. If bidder A takes the company out for a luxurious meal, but bidder B does not, and bidder A wins the work, it may appear that they won unfairly. A lot of business ethics is about avoiding the perception of conflict of interest, especially when dealing with suppliers.

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