Leadership and Ethical Decision-Making

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Ethical Challenges Introduction (Scenario A) Tom Tramlin, the CEO of UWEAR has asked that you spend some time with Joe Smith who is his top sales representative. This will give you a feel of what the salespeople of UWEAR are faced with every day. Joe has a scheduled meeting with Bill Bateman, the CEO of the Peninsula Hotel chains. Joe is meeting with Bill to discuss about the renewal of their contract for the supplies of employee uniforms. In the past year, Bill and Joe have worked together and they have become really good friends together with their families who have been acquainted with each other. They have shared many adventures and outings together including different social events, out on Bill’s yacht and even staying at the hotels that has a beautiful waterfall by the swimming pool. Since Bill and Joe have such a great personal and business relationship, Bill has referred a few other hotels to UWEAR for uniform supply. Joe was able to gain the contract with Peninsula Hotels because he was able to under bid UWEAR’s competitor. Joe has to be careful this time though as he was reprimanded last year for lowering the price so low.This year the risk are higher for cutbacks and layoffs due to the merger of UWEAR and PALEDENIM. Joe wants to be able to renew this contract since it does provide 50% of sales. Bill has invited Joe to go out on the yacht for the weekend with his wife. Bill has said that it would be good to catch up since it has been so stressful with work and contracts that are being talked.. Joe is unsure of what to do with the invitation. He has decided to consult with his management team since he has been invited to go to the yacht with Bill and does not want to jeopardize his friendship or his employment status. How should Joe respond to Bill's invitation? What would others think of Joe's decision? Is there a right or a wrong decision for Joe?

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