Friday, January 11, 2008

I Needed a New Tire . . .

. . . and started to think as a new tire was placed on my car . . . what if the retail outlet that sold me my new tire did so only to gain an incentive from the manufacturer? Let’s face it, retail organizations are sales-driven. They have to be in order to be successful, and salespeople in retail organizations are usually aggressive, looking to peddle those goods where the manufacturer is offering incentives. Suppose the tire store negotiated short-term incentives on specific brands to generate sales, signing an exclusive contract with the tire manufacturer of my new tire, to take every tire they can produce in their new line of tires. That exclusive contract comes with a huge discount based on serious volume. In other words, the more tires the retailer sells, the more money they’ll make – and we’re talking lucrative results for the company and very good bonus money for the salesperson.

Now suppose that one of the store’s salespersons with knowledge about tires took a look at the tire specifications and determined that the specifications were sub-standard.

If the salesperson decides to raise concerns about the product quality of the tires, he will become a whistle-blower. How would he go about the process if he does decide to raise concerns? What should any employee do who has such concerns? For me, any employee including the salesperson at my tire store should start by following the internal process if there is one. If not, he should approach the appropriate regulatory authorities to raise his concerns. If that doesn’t work, he could contact the media as a last resort.

Another question would be whether or not this example of whistle-blowing is ethical. For me, the salesperson’s concerns about the design specifications and quality of the tires, and perhaps even with his extensive work experience, wouldn’t count as definitive evidence of problems with the tires. The employee must have documented evidence that is convincing to a reasonable observer that his or her viewpoint of the situation is accurate, and evidence that the store’s practice seriously threatens and places the public in danger.

Clearly, however, the salesperson faces an ethical dilemma. Should he sell the incentive-laced tires? Or, should he place his job and company at risk by not taking advantage of the incentives, opting to sell those tires where he has confidence in the specifications?

From a consumer’s standpoint and for me as I sat in the waiting area flipping through a magazine, all I could do is reason that I have to trust the person and company I am dealing with – that he or she would not want any harm to come to another person

Trust can be such a fragile thing.