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The Acme Company sells industrial supplies through its own sales force, which calls on company purchasing agents. Acme has found that providing the purchasing agent with small gifts helps cement a cordial relationship and creates goodwill. Acme follows the policy that the bigger the order, the bigger the gift to the purchasing agent. The gifts range from a pair of tickets to a sports event to outboard motors and snowmobiles. Acme does not give gifts to personnel at companies that they know have an explicit policy prohibiting the acceptance of such gifts.

"Assuming no laws are violated, is Acme's policy of providing gifts to purchasing agents morally proper?"

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91698553

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