The Problem: The Case of the Generous Advisor
While sales of your core product are starting to pick up, in order to take the next product to market, you need to have enough in reserves to be comfortable with spending $15 million which will allow you to put your second product on the market. Thus, the Executive Group is actively seeking out ways to increase sales or find new investors. The CFO has come to you with an opportunity. He was at an NFL game courtesy of Adam’s Financial Services. While talking with Marcus Adams, the owner of AFS, he laid out the current state of the company and its needs.
The next day, Marcus sent a proposal to G-BioSport: AFS would purchase $750,000 worth of stock at $1.00 per share in exchange for (a) managing the stock portfolio of the company as well as the principals [the Executive Board] as well as (b) providing consulting services. The fees for the consulting services would be a percentage of the increase of the value in the stock. AFS represented that because of its connections in the penny market, it would be able to assure that the stock was positioned well. AFS is willing to make this move based on the success of the current product as well as expectations for success for the new product.
The decision Send a memo to the leadership team recommending that AFS be sent a counter-proposal where the rates charged will be comparable to those in the industry and that G-BioSport will not participate in preferential stock offerings.
As you reflect on my decision, consider the following:
Did the process for the ethical analysis make sense? Did you like the result? What are the problems with the process? What are the sticking points?
Did you like the results? Do you get a sense that you would follow these results in real life? Why or why not?
What insights do you have about his problem that you would like to share with others? What information would you appreciate from them?
How would adding the world of emotion and conscience help?
Consider the spiritual perspective spirituality being defined as that which gives life and work meaning and purpose. As you begin to see yourself in light of the community, how can you (and others in the organization) begin to discipline your desires so you can live fully in the present with faith and trust, avoiding self-righteousness.