Damerco Pharmaceuticals, Inc. is the leading manufacturer and distributor of I.V. fluids and other pharmaceutical products. The company has chosen as one of its five core values "Integrity." To support this value, its Code of Ethics provides that bribing any government officer is punishable by dismissal. Any employee who knows any employee violating this provision and fails to report to management can also be subject to termination from the service. Fred Cabahug, a sales rep, one day has an appointment at 8:00 AM with a medical director of a hospital who planned to buy Damerco's products. Driving the company car, Fred was caught in a traffic snarl. Looking at his watch, it was 15 minutes before 8:00. He got out of the line and went against the oncoming traffic. A policeman stopped him. So as not to waste time, he gave the policeman P500 and was allowed to go. The following day, he reported the incident to his supervisor who had a worried look. Fred tried to justify: "Boss, the Medical Director was a stickler for punctuality. If I were late, even for 5 minutes I would have lost that opportunity to sell for the company P300,000 worth of pharmaceutical products. Besides, the P500 that I forked to the traffic policeman was my own money and I don't have the intention of getting a reimbursement from the company. Did Fred comply with the core value of "integrity"? Explain your answer.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Damerco Pharmaceuticals, Inc. is the leading manufacturer and distributor of I.V. fluids and other pharmaceutical products. The company has chosen as one of its five core values "Integrity." To support this value, its Code of Ethics provides that bribing any government officer is punishable by dismissal. Any employee who knows any employee violating this provision and fails to report to management can also be subject to termination from the service. Fred Cabahug, a sales rep, one day has an appointment at 8:00 AM with a medical director of a hospital who planned to buy Damerco's products. Driving the company car, Fred was caught in a traffic snarl. Looking at his watch, it was 15 minutes before 8:00. He got out of the line and went against the oncoming traffic. A policeman stopped him. So as not to waste time, he gave the policeman P500 and was allowed to go. The following day, he reported the incident to his supervisor who had a worried look. Fred tried to justify: "Boss, the Medical Director was a stickler for punctuality. If I were late, even for 5 minutes I would have lost that opportunity to sell for the company P300,000 worth of pharmaceutical products. Besides, the P500 that I forked to the traffic policeman was my own money and I don't have the intention of getting a reimbursement from the company. Did Fred comply with the core value of "integrity"? Explain your answer.

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