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

Ravi, a purchase manager at a Chennai manufacturer, must choose between two suppliers. Supplier A offers him a personal gift if selected and quotes a slightly higher price; Supplier B offers better quality at a lower price. He selects B and reports A's offer to the compliance officer. Which ethical idea is most directly upheld by his action?

Ravi upholds integrity and avoidance of conflict of interest. He chose the supplier on price and quality, rejected a personal inducement, and disclosed the offer to the compliance officer, thereby putting the organisation's interest ahead of his own gain.

  1. AAvoiding conflict of interest and acting in the organisation's interest with integrityCorrect
  2. BMaximising personal gain from the position
  3. CFavouring suppliers with longer relationships regardless of terms
  4. DKeeping all offers confidential from the company

Explanation

Ravi refuses a personal inducement, decides on price and quality, and discloses the offer. This is integrity and avoidance of conflict of interest. Keeping the offer confidential would be the opposite of what he did, since he reported it.

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