As CEO of a large hotel in Port Moresby, you and your purchasing manager are in the midst of the annual review of several vendor’s contracts. One of the suppliers is Mountain Wara Distributors, a restaurant supply company that furnishes straws, salt pepper, condiments, and other similar items for the restaurants and room service in your hotel. Your spouse, and associate dean at one of the local university’s business schools, has informed you that Mountain Wara’s CEO serves on the school’s council of advisors and has mentioned Mountain Wara’s supply contract and a willingness to endow a scholarship fund. Your spouse’s primary area of responsibility for the school is fund raising. Discussion Questions 1. If Mountain Wara’s contract is renewed, would there be an appearance of impropriety? 2. Are there ways to avoid negative perceptions? Answer each questions to at least 500 words each
Question
As CEO of a large hotel in Port Moresby, you and your purchasing manager are in the midst of the annual review of several vendor’s contracts. One of the suppliers is Mountain Wara Distributors, a restaurant supply company that furnishes straws, salt pepper, condiments, and other similar items for the restaurants and room service in your hotel. Your spouse, and associate dean at one of the local university’s business schools, has informed you that Mountain Wara’s CEO serves on the school’s council of advisors and has mentioned Mountain Wara’s supply contract and a willingness to endow a scholarship fund. Your spouse’s primary area of responsibility for the school is fund raising. Discussion Questions
- If Mountain Wara’s contract is renewed, would there be an appearance of impropriety?
- Are there ways to avoid negative perceptions? Answer each questions to at least 500 words each
Solution
- The renewal of Mountain Wara's contract could potentially give an appearance of impropriety due to the connection between the CEO of Mountain Wara and your spouse. This is because the CEO's willingness to endow a scholarship fund at the university where your spouse is an associate dean and primarily responsible for fundraising could be perceived as a conflict of interest. If the contract is renewed, it could be seen as a quid pro quo situation where the contract is being renewed in exchange for the endowed scholarship fund. This could harm the reputation of both the hotel and the university, as it could be seen as unethical behavior.
However, it's important to note that an appearance of impropriety is not the same as actual impropriety. If the decision to renew the contract is based solely on the quality of the products and services provided by Mountain Wara, and not influenced by the CEO's offer to endow a scholarship fund, then there is no actual impropriety. But the perception of impropriety can be just as damaging as actual impropriety, so it's important to handle this situation carefully.
- There are several ways to avoid negative perceptions in this situation. One way is to ensure that the decision-making process for renewing the contract is transparent and based solely on the merits of the products and services provided by Mountain Wara. This could involve documenting the reasons for the decision and making this information available to stakeholders.
Another way is to separate the contract renewal process from the scholarship endowment offer. This could mean ensuring that the decision to renew the contract is made before the scholarship offer is considered, or vice versa.
A third way is to involve a third party in the decision-making process. This could be an independent committee or an external consultant who can objectively evaluate the contract renewal and the scholarship offer separately.
Finally, it's important to communicate openly and honestly with all stakeholders about the situation. This includes the hotel staff, the university, and the public. By being proactive and transparent about the situation, you can help to prevent any negative perceptions from arising.
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Required informationSkip to questionWegman's Food Markets Wegman's Food Markets does all it can to create happy, successful environments for both its employees and its customers. Almost anyone is sure to enjoy an ethical atmosphere filled with good food, abundant choices, responsible employees, and respect. Review the three segments of the case and write your responses as instructed. Motivation is more than a tool that managers can use to foster employee loyalty and boost productivity. It is a process that affects all relationships within an organization and influences many areas such as pay, promotion, job design, training opportunities, and reporting relationships. Motivating employees to increase satisfaction and productivity is an important concern for organizations seeking to remain competitive in the global marketplace. Read the case below and answer the questions which follow. Ranking high within Fortune Magazine's "Best 100 Companies to Work for" for several years, Wegman's Food Markets is loved by employees and customers alike. The 80-store chain operates on an interesting and somewhat backwards motto: Employees first, customers second. Life is different at Wegman's. At many grocery stores, annual turnover rates can reach nearly 100 percent, whereas the turnover rate for full-time employees at Wegman's is only 6 percent. What makes Wegman's employees so happy? It's the fair salary and respect for each person as an individual. In addition, Wegman's offers competitive benefits, including scholarship opportunities, a Wegman's retirement plan in addition to a 401(k), adoption assistance, and numerous employee discounts. Employees at Wegman's are allowed to do whatever it takes to create customer satisfaction without having to go higher up for approval. In some cases, this has taken the form of cooking a woman's Thanksgiving Day turkey at the Wegman's store because the one she purchased wouldn't fit in her oven or sending a chef to a customer's home in response to an SOS. While this may seem a bit extreme, a Gallup poll suggests that people who are emotionally connected to their grocery stores spend up to 46 percent more. As proof, Wegman's received around 2,400 individual letters in one year in which the writers begged Wegman's to build stores in their areas. Even an ethical company, such as Wegman's, isn't without its share of issues and risks. In 2005, activists accused Wegman's of cruel animal treatment at their Wegman's Eggs Farm. The New York State police and the Wayne County District Attorney's office investigated the matter and acquitted Wegman's of any wrongdoing. In response, Wegman's hired Dr. Joy Mench, professor of animal science at the University of California at Davis, to consult with them on proper animal husbandry. The company also brings in a veterinarian from the Cornell University Poultry Diagnostic and Extension Service to monitor the health and well being of the hens. Which of the following of Wegman's motivating factors is an intrinsic motivator?Multiple Choicea sense of pride from meeting customer needsscholarship opportunitiesthe Wegman's retirement planadoption assistanceemployee discounts on groceries
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