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Use the line-drawing technique to determine if each of the scenarios within the following case is an example of conflict of interest or not.

Tom has been named the manager of a large new chemical plant that is still to be designed and constructed. Tom’s responsibilities are to assemble and supervise the design staff; ensure that the plant is safe, operable, and maintainable; and start up the plant after construction. Tom recommends that the design staff specify a new ValCo valve to replace traditional gate valves. Consider the following series of cases:

Case 1: ValCo valves are superior to traditional gate valves because they seal more tightly and more quickly. After a large number of ValCo valves have been ordered, Jim, the ValCo salesman and a former classmate of Tom’s, visits Tom and gives Tom a pen with the company logo stamped in gold. The pen is worth $5. Should Tom accept this pen?

Case 2: Same as Case 1, except that, instead of offering Tom a $5 pen, Jim invites Tom to play golf at an exclusive country club. Should Tom accept the golf invitation?

Case 3: Same as Case 2, except that Jim offers to sponsor tom for membership in an exclusive country club. Should Tom accept the offer of sponsorship?

Case 4: Same as Case 3, except that Jim makes his offer before ValCo valves have been ordered. Should Tom accept the offer of sponsorship?

Case 5: Same as Case 4, except that ValCo valves are inferior traditional gate valves. Should Tom accept the offer of sponsorship?

Case 6: Same as Case 5, except that, instead of offering to sponsor Tom’s membership in an exclusive country club, Jim says he will treat Tom to an all-expenses-paid trip to the Bahamas. Should Tom accept the trip?

Each of the above cases assumed that Jim and Tom were former classmates. What difference if any, would it make to any of these cases if Jim and Tom had never previously met each other?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91390257

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