Jeff Sanders, Head of Finance for Components, Inc

question 81

Multiple Choice

Jeff Sanders, head of finance for Components, Inc. has just interviewed Laura Dern, an employee from the finance department of InChip, Components' chief competitor. Laura has explained that she has been passed over one too many times for a promotion at InChip and is thus in the job market. As Laura is leaving she whispers to Jeff, "Look, I have no contract at InChip that obligates me in anyway. I can begin immediately. Further, I have been able to obtain copies of our newest computer chip designs. You'll have them before InChip even begins production."

• A) Jeff should hire Laura on the spot without any worries about ethical breaches since Laura is not under contract.
• B) Jeff's hiring of Laura may constitute an ethical breach, but would not constitute illegal conduct.
• C) Jeff should not hire Laura, and must analyze the issue of whether to disclose Laura's conduct to InChip.
• D) Jeff should not hire Laura and need not worry about Laura's conduct and its impact on InChip.

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Definitions:

Comarketing

Cooperative arrangement in which two businesses jointly market each other’s products.

Cobranding

Cooperative arrangement in which two or more businesses team up to closely link their names on a single product.

Affinity Program

Marketing effort sponsored by an organization that solicits involvement by individuals who share common interests and activities.

Relationship Management

Collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties.