You work for a company that is constructing a major football stadium. The day that the stadium is finished, large cracks appear in the supporting walls. It turns out that your company’s purchasing director bought cement from a new and inexperienced company. You find out that the cement supplier was no cheaper than the other suppliers who had bid for the contract but that the son of your purchasing director happens to run the cement company.
Is this an ethical issue and why?
A . Yes – the cement supplier clearly knew that it was providing faulty materials
B . Yes – your purchasing director has had a conflict of interest in this matter
C . No – there is no evidence to show that the company knew that the cement was faulty
D . No – the cement supplier was clearly chosen on the basis of value for money rather than personal connections
Answer: B