Vendor Gifts at Indian Trails Country Club: An Ethical Dilemma

This case presents an ethical dilemma at a Country Club.  The goal of this case study is to

1. Understand the difference between a kickback and a gift;
2. Explain how gifts in hospitality businesses may create conflicts of interest;
3. Understand the consequences of unethical behavior;
4. Delineate standard practices for dealing with gifts;
5. Learn about measures for preventing ethical issues and dilemmas, while allowing basically good employees to do the right thing and succeed.

Questions to consider:

1. Are vendor kickbacks, receiving anything of value to influence a business decision, illegal?
2. Did Tom receive gifts or kickbacks?
3. Did Tom maintain ethical relationships with the vendors based on his intentions, the 4.consequences of his actions, and/or industry practices?  If not, what disciplinary action would you recommend?
5.What can be done to prevent the case’s ethical dilemma from happening again?

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