Stacking the deck.

• Author: Hammer, Gary
• Position: Financial executive faces ethical dilemma

Say you get an offer from vendor for a service that your company purchases already. The hook: The competing vendor will contribute to your favorite charity. Can you make everyone happy? Read what two financial executives and an ethicist say they'd do in this hypothetical situation, in the third of a series of case studies in ethics.

THE QUANDARY

Beth Carpenter returned from a business trip and was surprised to find a message from a major credit-card company. Fearing the worst about her personal finances, she immediately phoned and learned the call was from Doug, a salesman marketing his company's purchasing credit cards. Beth was a little puzzled, even miffed, that as CFO of Anne Owens, Inc., she was receiving sales calls. But she soon realized why.

"We've got a new service that I needed to share with you directly," Doug explained. "I did a little perusing of the Internet and learned that you're both CFO of Anne Owens and a charter sponsor of the local symphony orchestra." Beth was at once taken aback that a salesman could glean this much from the Internet and impressed with his marketing skills. Doug continued, "My company is offering a new opportunity that can serve Anne Owens' bottom line, and at the same time benefit a charity like the symphony."

"Is this one of those affinity programs?" Beth asked. "In a way, yes," Doug answered. "You see, we know Anne Owens must take advantage of the flexibility and convenience of purchasing credit cards. Sure, these cards represent only a small portion of your purchases, but my company wants to earn your business. With this new service, we promise two fantastic benefits. Anne Owens receives no annual fees, which no one else offers. Plus, 1 percent of purchases, up to $100,000 per year, will be donated to the symphony in your and/or Anne Owens' name. Given your relationship to the symphony, Ms. Carpenter, you can see why it was so important that I reach you instead of your purchasing manager!"

Beth's gut reaction was sheer glee. As a friend of the symphony, she was upset by recent talk of the excellent orchestra's demise due to a shortage of contributions. On the other hand, Anne Owens' current purchasing card provider, while requiring annual fees, had been a good vendor. Beyond that, Anne Owens had consistently, albeit politely, declined every plea by Beth for the company to contribute philanthropically to the symphony. As Beth's mind raced, Doug rang in, "So, what do you think of this great deal...