One of Best Buy’s senior executives recently asked a colleague in the company’s Merchandising department for their honest opinion regarding various brands of home appliances he was considering for personal purchase. As an unrequested, surprise “favor” to the senior executive and a “good deed” for a great vendor partner, someone on the Merchandising team arranged for the senior executive to receive free appliances in exchange for him blogging about his experience with the products.
The vendor was a willing partner – eager for the PR value of the blog – and the executive would benefit from free use of the new appliances. No one would have been harmed. What ethical challenges, if any, do you see in this scenario?
1) Is it OK for a Best Buy employee to exchange favors in this manner with a company vendor? Why or why not?
2) Does it matter that the employee was an executive of the company? If so, how?
3) What about the blog itself? Could the executive’s comments be compromised in any way by his underlying relationship with the vendor?
The outcome
This turned out to be an excellent learning opportunity for all. The above scenario was well into the planning stages until a flag was raised by a departmental Administrative Assistant. Somehow, the situation did not “feel” right to this employee and the issue was brought to the Ethics Office for their opinion. Upon reviewing the situation, the Ethics Office recommended that the Merchandising team and vendor not proceed with the plan. The Ethics Office also reached out to the senior executive who was completely unaware of the activity being taken as a “favor” to him. What were the concerns?
- Regardless of the good intentions of all involved, such a scenario could potentially create the perception that Best Buy’s leaders are “for sale” to the highest bidder. As noted in Best Buy’s Code of Business Ethics, employees are to avoid any activity that places – or gives the appearance of placing – personal interests ahead of the company’s interests.
- The FTC requires that bloggers involved in product marketing clearly state whether the merchandise in question was obtained for free and/or if any compensation was received. Without such a disclosure, public comments on the blog could have violated the required transparency.
Broader Questions for Thought and Discussion
- Do leaders underestimate the potential for subordinates to “over interpret” casual inquires / requests – and then take action without being asked, that they think will please the executive?
- Do individuals at any level try too often to please or be helpful, without asking the uncomfortable questions or following their own internal compass?
- Note the courage of the administrative assistant to listen to her inner voice and ask whether this was really in the best interest of the company. Would you have spotted the risk – and then asked the question?
This was a situation in which none of the players had any bad intent, and several did not have full context, yet it could have been badly misinterpreted both internally and externally. As Chief Ethics Officer I am proud of our folks – from the admin who asked the question, to the senior exec who wanted to be sure that he was playing by all the rules.
This is a great reminder for all of us: ethical behavior does not mean that we never make mistakes – it is about quickly and transparently correcting a course of action when needed, and sharing the learning.
I think this is a really good story. I appreciate that the administrative assistant felt comfortable enough to raise their hand and say what they thought. One can never understate the importance of following your “gut.” In the field we face things like this everyday. While the promotional items I get my hands on are perhaps not as fancy as a new appliance we still see free gifts from vendors. While they are not arranged for an insidious purpose our vendors would like us to be comfortable with their products and have confidence to sell them. When we go to conferences we walk home with some neat “swag” but it is important, though difficult, to maintain our responsibility to sell the customer what is best for them regardless of our personal bias or experience.
Neat post Kathleen, thanks.
I read through your sustainability report and was very impressed. For a company that is essentially in an unsustainable business, Best Buy is doing great leadership actions. The depth of your commitment to communities, employees and the natural environment is admirable. As resource depletion becomes more problematic, the Best Buy global reach will be negatively impacted – as will that of other global businesses. However, your leaders seem to be aware of that eventuality and are working on possible ways to forestall the impacts. I really like your employee programs, too.
Thanks for the report – and keep up the great work.
John Neville, president Sustainable Arizona