Gift-giving is a social tradition that has been in existence in most cultures that arerelationship-driven. Good business relationships are built upon personal relationships, and giftsare an integral component of those relations. Even though gifts should never be used to replaceetiquette and good business practices. Gifts are ethical when used to supplement a soundbusiness proposition. However, […]
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Gift-giving is a social tradition that has been in existence in most cultures that are
relationship-driven. Good business relationships are built upon personal relationships, and gifts
are an integral component of those relations. Even though gifts should never be used to replace
etiquette and good business practices. Gifts are ethical when used to supplement a sound
business proposition. However, when used to substitute a good business proposition, then gifts
are unethical. From the ethical scenario, Bill’s gifts are not a form of bribery. Bribery in business
is defined as a payment in the form of money or services to a person to receive a favor or preferential treatment (James, 2002). A bribe is, by definition, unethical. Joe
receives gifts from Bill, and these are mainly because, over time, their relationship has
grown as a result of the two doing business together.
Utilitarianism is a normative ethical theory that examines the ethical nature of a decision
based on its consequences or the end. Based on this theory, ethical action is one whose
consequence achieves the greatest good for the highest number of persons (Singh & Mishra,
2018). Thus, in analysing an action, one must consider the parties that benefit from it and those
that are harmed. Focusing on the end, therefore, does not put into consideration the means used
to make the decision or reach a particular end. An action is judged solely based on its
consequences; the motivation or character of an individual is not put into account. Based on this
theory, Bill’s gifts are not a form of bribery. Joe is his friend, other than being in business with
him. Thus, he shares gifts with him on a personal level as his friend. Besides, Bill’s actions do
not affect the nature of their business. The two have expanded their businesses, and Bill has even
referred other clients to Joe for him to supply uniforms to them.
Other ethical issues might be associated with the relationship between Joe and Bill. For
instance, since they are friends, Joe was able to get the tender to supply a uniform at Bill’s hotel.
He did so by having a lower bid than his competitor. Based on deontology, the focus is usually
on the motive of an action. The theory emphasizes observing ethics as a duty and the willingness
of people to engage in the moral acts for the common good (Singh & Mishra, 2018). The focus is
on the rightness of an action, and one should strive to do good always even when it might result
in a personal loss. In this ethical scenario, Joe opted to place a lower bid so that he could win the
supply tender. The action was wrong as he engaged in unfair competition. Deontology advocates
for engaging in action for the right reasons regardless of the outcome. Based on this theory,
therefore, Bill and Joe’s actions were unethical. By underbidding, Joe engaged in a wrong action.
The means through which he acquired the tender was wrong. Thus, although Bill’s gifts to Joe
cannot be termed as bribery, there are other actions in their relationship that raise ethical
concerns.
References
James, H. S. (2002). When is a bribe a bribe? Teaching a workable definition of
bribery. Teaching Business Ethics, 6(2), 199-217.
Singh, A. K., & Mishra, N. K. (2018). Ethical theory & business: A study based on
Utilitarianism and Kantianism. International Journal of Humanities and Social
Development Research, 2(1), 97-112.
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