Universal internet services recently redesigned it sales organizations. One objective was decentralization. This was accomplished by eliminating two layers of sales management and increasing the span of control for field sales managers. Sales people were also give more authority in making decisions need to serve assigned accounts and were given an overall budget that could be spend as deemed appropriate by the sales person. District manager Mary Swenson noticed that soon after these changes were made one of her poorest performers had suddenly increased sales dramatically. The salesperson, Fred Williams, had apparently landed three new, large accounts. Mary was delighted about this development, until she began to hear rumors that Fred had bought these accounts by giving lavish gifts to key decision makers at each account. Universal had strict guidelines about giving gifts. Mary did not want to violate the recent empowerment of salespeople, but she was concern about Fred’s situation.
Answer the following questions:
1. What are Mary’s options in this ethical dilemma?
2. What should Mary do? Why?
3. What are the advantages and disadvantages associated with your solution?