Question

State a Concern You Have About Jake In The Situation Below

Jake Is A Purchasing Agent For Ulta Industries & he got 3 Tickets from a supplier named Gater Corp., to the upcoming Lakers v. Knicks basketball game. These tickets were given to Jake as a gift from a supplier, Gater Corp. Jake often authorizes purchases from suppliers including Gater Corp.  These tickets that Jake has received sell for over $725 each. What problems are seen in this situation and why? Please List A Paragraph Paragraph Response.

Answer 1

Jake is a purchasing agent for the Ultra Industries and he is an authorised person to authorise purchases from suppliers. Jake has been employed by the Company at a position of influence. A supplier named Gater Corp has supplied 3 tickets to Jake as gift of each valuing at $725. Gift from a supplier to Jake is in essence a gratification which we commonly call as kickback or bribe to influence purchases in favor of the Gater Corp. This is an unethical practice and could lead to possible sacking of Jack from the COmpany as well as criminal cases against him. The Company may also suffer due to less qualitative goods/services rendered by Gater approved by Jake or purchase prices inflated. Further, the one of practice may become a regular norm leading to deterioration of work culture of Ultra Industries.