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Company A's Executives Are Members of the Board of a Charity

Question 164

Essay

Company A's executives are members of the board of a charity.  Company A may even itself be a major donor to the charity.  The charity may even benefit many of the company's customers.  The charity holds a golf tournament to raise money.  The executives participate in the tournament.  In some cases, Company A even pays the executives' participation fees (good for company image).  Company B is a supplier to Company A or a vendor that would like to be a supplier.  Enter the desire for face time.  In some tournaments, Company A executives turns to every Company B executive in the supply chain and asks for participation.  And participate they do.  They pay their entry fees because Company A executives ask.  But sometimes Company B folks want and get more.  Company B antes up the dough for primo participation in the tournament.  If a VP of Company A is playing a round with a celebrity, Company B pays enough to get its VP in the same foursome.  Discuss the ethical issues.

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These are conflicts of interest, but the...

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