Mel in Hawaii Posted November 5, 2008 Report Share Posted November 5, 2008 The company I have worked for is shutting down (yes, I know I have been talking about that for 2 years) and we are finally down to the wire that I thought I would never see. Anyways, we have a nice phone system and were looking to sell it. A company that I have done work for comes to me and wants me to make the decision on if they are going to buy this one or go for an 'outsourced' PBX instead that they gave me the proposal for. Ok, here's the rub... Would any of you feel in a wierd spot to be working for the company selling the system (and actively looking for someone to buy it) and being asked by the other company to be paid to make the evaluation on which is the better solution? Anyways, what I ended up doing was that I informed the company that I had a conflict of interest in selling the system and as such my oppinion could be affected by it. They seemed really annoyed that I didn't give them a straight Yes or No, but instead only wanted to discuss the relative technical merits of each system in general terms (giving them a lead on where to do their research). Afterwards I feel that I shouldn't have even gone that far as they still are upset that I haven't given them a Yes or No. I also didn't charge them for my time as I can't see myself charging for something that I don't feel comfortable about doing. Normally I really really like to help people, but in this case I fear that not helping at all would have been a better answer as they seem to be treating me as if I am hiding something when in fact I was straight up and told them of my conflict even before we started talking about it. So, where do you draw the line? Quote Link to comment Share on other sites More sharing options...
JohnH Posted November 5, 2008 Report Share Posted November 5, 2008 Mel: There are lots of situations where a potential conflict of interest MAY exist, but that shouldn't stop the process of getting things done as long as all parties are being treated fairly. You've disclosed the potential conflict of interest, so I think you've done your part with respect to that issue. The next question would revolve around who you are dealing with in the company. If you are dealing with lower-level or mid-level people who must report to higher ups, then I think you'd want assurances that they've passed the conflict of interest disclosure up the chain of command and gotten an OK. On the other hand, if you're dealing with the decision makers at the top, then if they don't have any problems with the conflict of interest you shouldn't let it bother you. Do your best and charge them for it. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted November 5, 2008 Report Share Posted November 5, 2008 I think you did the right thing. They put you between a rock and a hard place. As seller, you are supposed to push your product. Asking you to do an assessment of your own product compared to a competing product was not fair to you. If you gave them an answer in favor of your company's product, even if it was superior, they might well have seen you as biased, anyway. If you favored the other product, that would be disloyal to your employers. Quote Link to comment Share on other sites More sharing options...
jainen Posted November 5, 2008 Report Share Posted November 5, 2008 >>a potential conflict of interest MAY exist<< This isn't a "potential" conflict of interest, it is a real-world one. But that isn't a problem--any salesperson or broker has such a conflict as a dual agent. There is no ethical violation because the relationship was clearly disclosed. If you provided more than normal technical evaluation of alternative solutions, you have a right to charge what was agreed to. Of course, you will also disclose the payment to your current employer so there is no taint of a bribe or kickback. Overall it sounds like you are doing an excellent job of matching buyer and seller. The buyer is getting a hard-to-find bargain and the seller is getting a good deal too. Everybody should be happy, and you deserve to be compensated for everything you did to make it happen. Quote Link to comment Share on other sites More sharing options...
JohnH Posted November 5, 2008 Report Share Posted November 5, 2008 Interesting situation here - I find myself disagreeing with both KC and jainen, then reversing myself and partly agreeing with jainen. I disagree with the entire premise that Mel is a sales person for the seller - he's being asked to perform the task of an independent consultant for the buyer. That's where the POTENTIAL conflict of interest arises, but only because he's currently employed by the seller (although not as a sales person whose bias would be obvious to all parties & understood). Under the circumstances he's wise to disclose what I would still insist is a only a potential conflict of interest. On the other hand (in spite of being wrong about Mel's role in the transaction IMHO) jainen raises two other important issues which are very important. By disclosing his compensation to his present employer, he covers all the ethical bases. And if his recommendation is to buy the used system, both the seller and the buyer benefit from his participation in the transaction. I'm also inclined to think the buyer is already leaning toward the used system simply because they asked Mel to look into it when they already had a proposal in hand for the new system. They just want Mel's opinion to confirm what they already want to do. The only problem would arise if Mel thinks they should not buy the used system, in which case he should probably just say "no" and drop the whole issue. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted November 5, 2008 Report Share Posted November 5, 2008 Mel, Your opinion has value. Charge for it. If they want a yes or no, tell them you will write up an opinion for a fee. In the opinion, state the conflict. Make sure your employer knows what you are doing. Then cash the check. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
jainen Posted November 6, 2008 Report Share Posted November 6, 2008 >>not helping at all would have been a better answer<< Now, THERE'S an ethical problem. Your employer is trying to sell the system and you know of a likely buyer, yet you decide not to provide the information the buyer needs because... why is that exactly? Quote Link to comment Share on other sites More sharing options...
Mel in Hawaii Posted November 6, 2008 Author Report Share Posted November 6, 2008 Jainen I think you misinterpreted my comment. I was more than willing to provide full details, documentation, etc on the system we were selling. My discomfort came when asked to evaluate the other system and make a choice between them. Do you go to a car salesman and expect him to have him choose which car for you to buy, one on their lot or one at another dealer? Obviously in the car salesman example, you would be expecting them to choose theirs and knowing they would choose that regardless. But if that car salesman has done consulting work for you, and you asked him as a consultant to do the comparison, theres where the problem is. Quote Link to comment Share on other sites More sharing options...
jainen Posted November 6, 2008 Report Share Posted November 6, 2008 >>theres where the problem is<< It seems the consensus in this thread is that there is no problem. Quote Link to comment Share on other sites More sharing options...
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