When John went to Japan to visit a potential vendor for his company, his wife asked him to pick up a string of pearls. The vendor was located in the cultured pearl growing center of Japan. One afternoon when business finished early, John asked the Japanese company marketing manager where was the best place to buy a pearl necklace. The marketing manager said he would be glad to take him and his associate, Keith there.
At the store, John found a beautiful necklace with no price tag but said that he wanted to spend only about $500. The stored salesman paused for a significant amount of time and then said that it just happened that the price of this necklace was $500. This surprised John since similar pearls he and his had seen in the U.S. cost significantly more. However, he rationized that he was in the Japanese city where they grew cultured pearls so they would be cheaper.
John’s wife was delighted with the gift and decided to insure it. She took it to be appraised and was told it was worth $2500 wholesale. When John told his associate Keith about the value of the necklace, Keith replied “Didn’t you see what was going on at the pearl store?” When you said you were looking to pay only $500, the pearl store salesman looked the marketing manager who nodded and then the salesman agreed to the $500 price. John had no idea of what had gone on.
John did not approve the Japanese company as a supplier.
Has John done anything unethical? Use the 8 step decision making process to arrive at your decision. Also, list any assumptions you have been to arrive at your decision.