The merger between UWEAR and PALEDENIM is complete, and this project is nearing completion. Prior to the end of

the project, you will need to help UWEAR and PALEDENIM develop and implement code of conduct policies to cover the issues that you have encountered during your work with them.

For each of the 3 situations, discuss the following:

Identify the situation and state why you think that a policy is necessary.

What is the policy that you will establish to help prevent each situation from happening in the future?

For your code of conduct in general, discuss the following:

What reporting and investigative measures will you put into place?

What enforcement and punitive measures will be included?

What type of governing structure will you propose for an ethics committee for UWEAR and PALEDENIM?

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Problem A: Ethical Dilemma1Note:All character and company names are fictional and are not intended todepict any actual person or business.Your meeting with the chief executive officers (CEOs) of UWEAR andPALEDENIM went well. In a discussion following the meeting, Tom Tramlin,the CEO of UWEAR, mentioned that he would like you to spend some time inthe field with his top sales representative to get a feel for what thesalespeople face every day selling in the current business environment.Today, you are scheduled to spend the day with Joe Smith.As you walk across the lobby of UWEAR, you see Tom talking to a tall,distinguished-looking man. “This is Joe Smith,” Tom introduces when youstep up to them. “You’ll be spending some time with him today in the field.”“Nice to meet you, Joe,” you respond, shaking Joe’s hand.Tom says goodbye and makes his way to elevator while you and Joe headtoward the parking garage. “We’re going to meet with a couple of clientstoday,” Joe explains. “First, we’ll have lunch with Bill Bateman, the CEO ofthe Peninsula Hotel chain. He’s a great guy and I’m sure you’ll enjoy meetinghim.”“Where are we meeting him for lunch?” I ask, getting into Joe’s car.“Bill’s hotel, the Peninsula, has a great restaurant that I frequently use tomeet clients,” Joe answers. “The food is outstanding. We’re going to meethim there to discuss the renewal of his uniform contract.”As you continue the drive to the hotel, Joe elaborates on his business historywith Bill. “I was able to win the contract for the Peninsula chain last year,” heexplains. “We were just able to underbid our competitor, Threads4U. In fact,Bill said that I underbid them by about $5 per uniform. Great victory on mypart.”“It sounds like you’ve established a great working relationship with Bill,” yousay.“Oh, yeah,” Joe agrees. “He’s a great guy. The first time we met, I was onmy way to buy a nice bottle of cabernet as a birthday gift for my wife. Sheloves the expensive wines. I happened to mention this to Bill, he said heorders it all the time and offered to give me some for free. I told him it wasn’t

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Problem A: Ethical Dilemma2necessary, but he insisted. When I got my car back from the valet, I foundnot just a bottle, but an entire case of high-end cabernet in my trunk.” Joeshakes his head, smiling. “But that’s just the kind of guy Bill is.”“It sounds like it worked out for you and your wife,” you comment. “Did sheenjoy her birthday gift?”“Yes,” Joe says. “We both enjoyed it for quite some time. Well, here we are,”he adds, pulling up the Peninsula Hotel.As you park and exit the car, Joe explains, “Since Bill and I have been doingbusiness, he’s referred three other hotel owners to me to supply theiruniforms. Except for when I’m meeting with one of his competitors, I usuallyconduct business meetings with clients here at the restaurant in Bill’s hotel.”“It’s a beautiful hotel,” you comment as Joe leads you through the lobby,admiring the elegant décor. “No wonder you enjoy coming here. I wouldn’tmind bringing my family here for a weekend sometime.”“Actually,” Joe says, “My wife and I have become really good friends with Billand his wife. He often invites us out onto his yacht with his family, we go tosocial events with them, and we’ve stayed at the hotel several times. Wereally enjoy it. You should bring your family sometime, too. Kids love the poolwith the waterfall.You nod, following Joe into the hotel’s restaurant. After all you’ve heard aboutBill, you are very interested in meeting him.