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Ethics Question

944 Views | 3 Replies | Last: 4 yr ago by Red Rover
LincolnLogs
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I recently put together a proposal for my employer to partner with another company. The partner company provides a service my employer's clients utilize. The arrangement was that we refer them our customers and they pay us a royalty on every purchase they make with the partner.

After reviewing the numbers, my employer said the value wasn't high enough for it to be worth setting up the partnership.

Interested in others' thoughts on the ethics of setting up that partnership for myself and providing the referrals as clients ask if we have this partnership?

I feel like this is different than me spending my work time actively selling the partnership that the company doesn't benefit from, especially since they already said they aren't interested in the partnership. But, I could see how the employer would be less than thrilled with this.
Vernada
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AG
  • If your side deal ended up on the front page of your local paper, how do you think your employer would react?

  • Ask your employer if they are ok with your side deal?

If either of the above gives you pause, then you probably shouldn't do it.
Red Rover
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AG
Agree with the above. Also to add that if this might influence you as to what company you refer customers to, then I think you need to clear this with your company first. Without this deal would there potentially be other companies that you offer as an option or is this really the only viable or competent company for their purposes?

It seems like your company values subjecting customers to targeted referrals more than whatever the partner was willing to pay. You making money off of something - that you have express knowledge that your company values - while doing your job for your company and with your company's customers seems like an ethical violation to me.
IrishTxAggie
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AG
Can the other company hire you and you use your existing contacts to drum up the business instead of going a side hustle route?
Red Rover
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AG
IrishTxAggie said:

Can the other company hire you and you use your existing contacts to drum up the business instead of going a side hustle route?
That was my thought as well - if the other company is willing to pay you enough to leave your company and/or to form your own company for referrals that might be something to consider.
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