Date: July 4, 2009
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Should Mary Buy Her own Bonus?
By Shel Horowitz
If she donated $1,000 for a school to buy products, she would hit her million-dollar goal.
Mary Kantarian was achingly close to making her million-dollar sales goal — only $1,000 short. If she made the goal by the end of the year, it would mean a fat $10,000 bonus check, and a happy trip to the bank to finance a dream home she’d recently found. Other sales reps also were close, and one had already made the bonus. The books would close in just a few days, but at the end of the year her clients weren’t in a buying mood.
Still, Mary had one hope: inner-city Lincoln High School. Its students, who often had to share textbooks, could really use her company’s multimedia educational aids, but Lincoln had no discretionary budget for new teaching materials. What if Mary donated the money to this needy school for the purchase, and put herself over the magic quota?
Or perhaps she could offer partial “donations” to close sales at several schools. She would then surpass her quota goal with room to spare. The Lincoln school or other needy schools would gain immensely valuable educational programs that would help them serve their students, her company would pick up sales revenue, and she would meet her sales quota. Even better, she would earn a cool $10,000 on an investment of $1,000.
At first thought, this seemed like a win-win solution. But the idea needled Mary’s conscience. The more she thought about it, the more something about it bothered her. Yet if she didn’t close this “sale” — one which would help out disadvantaged students — she wouldn’t make that bonus, and her dream house would remain out of reach. She found herself wondering, What should she do?
Richard Burch, Adjunct Professor, Fairfield University Program
in Applied Ethics, Fairfield, Conn.
MARY SHOULD FIND BETTER WAYS to help Lincoln H.S. find the funds. Are there other corporate sponsors or community funds available? Could she pursue a school fund-raiser, or government grant? As an alternative, Mary could seek out more qualified prospects, or ask current customers to increase an order. Trying to pull off the proposed “donation” scheme would be no easy task. Product donations usually have to be without strings. Cash gifts will buy what’s needed most, like textbooks, not multimedia aids. Also, school systems, like corporations, have formal purchasing procedures, including sign-off points in the purchase-order process that uncover kickbacks and bribes disguised as donations.
Each rep knew where the others stood. What would be their reactions when they found out Mary made her quota this way? And what if everyone did this? What would be the impact on the company, other sales people, and other schools that would want the same special consideration? And what good is a customer who next time around expects the same deal?
Aside from the possible consequences of this deal, Kant would remind us we should do the right thing for the right reason. Mary is under a moral obligation to act loyally and to protect the legitimate interests of her employer. She should act in the interests of those who depend on her, even if those interests aren’t always the same as her own.
What Actually Happened
Mary decided not to pursue offering Lincoln High School a donation. She wasn’t comfortable with the idea, and she knew that her sales manager and superiors all the way up the line would object, on both ethical and practical grounds. Mary didn’t make her bonus. But her reputation as a hard worker who maintains her integrity under pressure led to a promotion and higher pay two years later.
Shel Horowitz (shel@principledprofits.com) is author of Principled Profit: Marketing That Puts People First, and a Hadley, Mass., consultant in marketing who initiated the Business Ethics Pledge movement; www.principledprofits.com.
Aside from the possible
Aside from the possible consequences of this deal, Kant would remind us we should do the right thing for the right reason. Mary is under a moral obligation to act loyally and to protect the legitimate interests of her employer. She should act in the interests of those who depend on her, even if those interests aren’t always the same as her own. N10-003 70-291 and 70-649.
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Which isn't really totally
Which isn't really totally true. I agree with the previous post about the internal compass, and with asking local corporations to assist the school in the purchases. In sales, it is not typical to ask corporations for donations to support schools, as the schools systems do this anyways. club penguin
Mary made her quota this
Mary made her quota this way? And what if everyone did this? What would be the impact on the company, other sales people, and other schools that would want the same special consideration? And what good is a customer who next time around expects the same deal? regards, Custom Dissertation
Cash gifts will buy what’s
Cash gifts will buy what’s needed most, like textbooks, not multimedia aids. Also, school systems, like corporations, have formal purchasing procedures
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School systems, like corporations, have formal purchasing procedures, including sign-off points in the purchase-order process that uncover kickbacks and bribes disguised as donations.
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Could she pursue a school
Could she pursue a school fund-raiser, or government grant? As an alternative, Mary could seek out more qualified prospects, or ask current customers to increase an order. ____________________________
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Like corporations, have
Like corporations, have formal purchasing procedures in Resume, including sign-off points in the purchase-order process that uncover kickbacks and bribes disguised as donations
big question
Couldn't she just given someone the thousand dollars and that person could have bought something... I mean... this was a simple problem and what ethical problems could have arisen? Let's be serious a little bit... She had a sales target and she would have invested 1000$ in order to make 10 000$ dollars. This is the simple concept of business. You invest something so you can make more.
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What would be the impact on the company, other sales people, and other schools that would want the same special consideration?
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What should Mary do?
If you have to second guess yourself as to if you would do something, it's usually the wrong thing to do. What if everyone who was that close to their bonus "bought" the bonus. It wouldn't be fair to the others that worked long hours making their quota. There are 2 roads in business, the easy way or the right way. The right way may take twice as long but the benefits will usually out way what would happen if you took the easy way out. She did the right thing. There will always be another house but would she be able to look herself in the mirror of that new house.
Should Mary buy her own Bonus?
My thoughts on this is clear, if it feels wrong it is wrong. Once you start to debate the right or wrongs of a decision and you feel you have to justify a process you are going to embark on it probably is wrong.
When it comes to business and common goals, nothing is worth your job or integrity. As scene here Mary's opportunities came later and it was based off her integrity that her company gave her more responsibility and her promotion.
Regards,
Karen
Buying a bonus
This goes with the old saying " you gotta spend money to make money". Which isn't really totally true. I agree with the previous post about the internal compass, and with asking local corporations to assist the school in the purchases.
In sales, it is not typical to ask corporations for donations to support schools, as the schools systems do this anyways. In the words of the book "Never eat alone" it don't hurt to ask.
If you can't tell your grandmother don't do it!
I think Mary's dilemma was settled when she began to question the donation. In general if it doesn't feel right then it probably isn't. Most of us have a moral compass. We just don't stop to follow it or rationalize situations and concerns away.
I think she could donate a
I think she could donate a higher quantity but only once. That's my opinion.
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Could Mary not ask her company to donate the media they need. This would give a positive spin to the company and also give her the credit for the sale. This is just an idea.
It would be too easy for her
It would be too easy for her just to ask and recieve. They are gonna make her work for it!
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