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CMA Intermediate · Business Laws and Ethics · Business Ethics and Emotional Intelligence

A purchase officer at an Indian company accepts an expensive gold coin from a supplier just before bid evaluation, saying it is only a festival gesture and will not influence his decision. Which ethical issue does this primarily raise in the workplace?

The primary issue is conflict of interest. Accepting a costly gift from a bidder just before evaluation can compromise, or appear to compromise, the officer's objectivity, whatever his claimed intention, so it breaches workplace ethics.

  1. AConflict of interest arising from a gift that may compromise objectivityCorrect
  2. BOver-delegation of authority
  3. CPoor inventory valuation
  4. DExcess use of emotional intelligence

Explanation

A valuable gift from a bidder during evaluation can impair, or appear to impair, impartial judgment. This is a conflict of interest, regardless of the officer's claimed intention. The other options do not describe the issue.

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