GREY CORPORATION KICKBACKS

You are the Director of Security at Grey Corporation. Grey Corporation is a large multi-national company. Black Corporation is one of Grey’s suppliers. A disgruntled Black Corporation employee has informed you that certain sales people who work at Black have given kickbacks amounting to over $20,000 during the past two years to John Jones, the Grey Corporation Director of Purchasing. John Jones is a good friend of yours. 

When you discuss the matter with him, he readily admits that he has accepted the kickbacks. He tells you that there are several extenuating circumstances and pleads with you to overlook the mistake. His reasoning is:

· He has three young children and you know how much his family would suffer.

· He accepted the money because one of his children needed an operation that resulted in large medical bills.

· The amount he accepted is insignificant to the corporation.

· The prices that Black Corporation charged Grey Corporation were competitive; thus Grey Corporation did not lose any money.

· He has a twenty year record of good service to the Company.

· You are a religious person and John Jones questions you “isn’t forgiving one mistake the proper Christian thing to do?”

How would you deal with this situation?

Are there are specific actions you would take?