An ethics Question

[Five Seasons]

AAhhh ..what?

So its okay to screw someone as long as their pockets are deep enough??

Its either right or wrong.

Would you tell your kids to do something like this, as long as their employer could absorb the loss?…Really??

It's an ethics question not a legal question. Ethically dicks isn't going out of business.

[Culvercreek hunt club]

It's an ethics question not a legal question. Ethically dicks isn't going out of business.

To me the Ethics holds no mater the size of the employer. Problem with our county currently is so many are OK with operating in the Gray area and can see black and white.

[ants]

It's an ethics question not a legal question. Ethically dicks isn't going out of business.

 

Right..and I think it is very unethical to profit off of someones generosity. The "OH they can afford it" thing just doesn't wash.

[NFA-ADK]

I have had friends and family in both big retail and small.  Both offered disounts to employees and family.  Some would even offer to friends.  Thier is a big diffence between offering a discount and making a profit from that family discount.  Plain and simple that is theft regaurdless of what store it is.

 

Bet if you asked your employer instead of posting the question on the internet they would say the same.  If you want to help a friend invite them into the store and introduce them to the manager and ask if he can get a discount as a personal friend.  Many managers are hunters and fisherman just like us and have no issue giving a discount to a close friend of yours.  Otherwise making a profit from your empoyer in this way is ethicaly WRONG, don't do it.   

[Five Seasons]

To me the Ethics holds no mater the size of the employer. Problem with our county currently is so many are OK with operating in the Gray area and can see black and white.

Right..and I think it is very unethical to profit off of someones generosity. The "OH they can afford it" thing just doesn't wash.

And you're only selectively quoting me when I also said "if you plan on doing this don't plan on keeping your job". You won't get arrested and there won't be a social media outcry which is typically associated with ethical issues. Big business didn't get to be big by not watching their own asses.

[G-Man]

No, buy for friends or.family and appreciate what they do for you

[ants]

And you're only selectively quoting me when I also said "if you plan on doing this don't plan on keeping your job". You won't get arrested and there won't be a social media outcry which is typically associated with ethical issues. Big business didn't get to be big by not watching their own asses.

..If an employer catches you reselling at a profit, you will most likely be fired because you did something unethical.

[Five Seasons]

I'd probably just do it for a few friends and family too, not to make a buck. They track your purchases and you'd be out of a job soon.

 

 

 

..If an employer catches you reselling at a profit, you will most likely be fired because you did something unethical.

 

I think I mentioned that?

[phade]

We might be missing the real point here. Many of the most successful companies today encourage the use of their discounts and advantages.

Seems like crazy talk but forward looking companies understand the value of goodwill.

[gfdeputy2]

If you sign a No compete & you get an employee discount & sell for profit you are competing

[ants]

I think I mentioned that?

Right... so it is unethical?

[gfdeputy2]

We might be missing the real point here. Many of the most successful companies today encourage the use of their discounts and advantages.

Seems like crazy talk but forward looking companies understand the value of goodwill.

 

Believe they do but not for the purpose of making a profit.

Edited August 10, 2015 by gfdeputy2

[phade]

Believe they do but not for the purpose of making a profit.

Employee discounts where profit can occur are built into the rates of discount offered to that employee. The revenue leakage caused by employee reselling is pretty minimal because of the tracking placed on employee purchases. Where it gets out of hand are mom and pop shops because they make poor business decisions with a policy and no risk controls.

Smart companies know x amount per employee per x time period is offered that covers cost of goods sold or offers a minor profit to them.

[gfdeputy2]

could be true but most companies I know including mine state not for resale or not for resale of profit

I get my Ruger's through employee purchases from employees but am told can not be resold within a year & not for profit. I can get welders & plasma cutters through my work but for personal use or for family can not be resold

[phade]

could be true but most companies I know including mine state not for resale or not for resale of profit

I get my Ruger's through employee purchases from employees but am told can not be resold within a year & not for profit. I can get welders & plasma cutters through my work but for personal use or for family can not be resold

And those are risk controls to limit reselling.

There reaches a saturation point where one too many rugers or welding machines are bought. The company knows this and its built into the allowance of employee discounting. The set numbers are not made public to employees for obvious reasoning.

[phade]

Every year, retailers release official annual reports along with their quarterly filings.

In these reports are often factors driving business issues, you rarely if ever see employee discounting as an issue. Why? Because they have their system setup with controls.

My MS final project was on Dick's Sporting Goods. It involved discussions with several VP including their risk and LP personnel. Employee discounting were blips on their radars because controls are in place that balanced acceptable risk vs. reward with sufficient controls in place.

Companies with issues on employee discounting either eliminate or modify the discounts if material problems arise. A good example would be Chrysler in 2008 removing friend use of employee discounting because the company was in a liquidity issue.

Edited August 10, 2015 by phade

[DirtTime]

It's not ethical, and kind of a DB thing to do IMO. Those discounts are a perk of the job, with the employer offing you deals to make the company a better place to work. Incentive so to speak.

If I owned a store/company and an employee did this to me, I would fire them on the spot. I would consider it theft.

It shouldn't matter the size of a company, wrong is wrong.

If you owned a store/company and caught an employee stealing what would you do? 

[moog5050]

Most companies will have specific guidelines on how an employee can use these discounts.  While I understand Phade's point, these companies have already factored in goodwill in their policies.  I would suspect nearly all will frown on an employee buying at a discount and reselling cheaper than company prices.  That isn't goodwill for the company.  If anything, it suggests to the public that the company is selling at prices that are too high to begin with.

[phade]

It's not ethical, and kind of a DB thing to do IMO. Those discounts are a perk of the job, with the employer offing you deals to make the company a better place to work. Incentive so to speak.

If I owned a store/company and an employee did this to me, I would fire them on the spot. I would consider it theft.

It shouldn't matter the size of a company, wrong is wrong.

If you owned a store/company and caught an employee stealing what would you do?

Is it theft? Its your own personal property. How long are terms valid for employee use only? The life of the product? Few companies define that because theyve accounted for the revenue leakage. 90 percent are still profiting anyway. Edited August 10, 2015 by phade

[DirtTime]

I see the point phade. I do. I just don't agree.

If it's my own business, yes it's mine. I have to buy it from the manufacturer, they don't ship you things on good faith hoping you will pay them back. If the item doesn't sell, I am stuck with it, so I am pretty sure it's mine.

But I don't think the OP meant years down the road either. It is more or less about using your discount and to buy items you plan to sell in the first place.

Unethical, and yes, I feel it is a form of theft.

Here's a question, say you loan me your car. It is never actually stated or made clear I have to return it and I don't, I sell it. Did I steal your car, OR did you give it to me?

[phade]

I see the point phade. I do. I just don't agree.

If it's my own business, yes it's mine. I have to buy it from the manufacturer, they don't ship you things on good faith hoping you will pay them back. If the item doesn't sell, I am stuck with it, so I am pretty sure it's mine.

But I don't think the OP meant years down the road either. It is more or less about using your discount and to buy items you plan to sell in the first place.

Unethical, and yes, I feel it is a form of theft.

Here's a question, say you loan me your car. It is never actually stated or made clear I have to return it and I don't, I sell it. Did I steal your car, OR did you give it to me?

Im not borrowing a product i buy using my employee discount.

[Nomad]

Depends on the company's policy on it. If they ok it , rock on.

I used to work for a safe manufacturer , we could buy "seconds" at a fraction of what new ones sold for. We all resold them to friends and friends of friends for $25 or so profit ( in the '80's) . The company was glad to get rid of them.

My wife still works there, there were times I got $700 gun safes for $100! I had guys lined up at their shipping docks and we filled up pick ups and trailers with them. Pretty sure they knew Larry wasn't putting 20 gun safes in his basement .

[DirtTime]

Im not borrowing a product i buy using my employee discount.

 

LOL. Fair enough. 

[Nomad]

Interesting subject . Look at Rolex, they only sell to their authorized dealers . To be a AD is difficult as Rolex is very concerned with maintaining their prestige . Rolex sets the price with a 38% profit built in for the AD. No discount can be given to the customer although sometimes a few % can be squeezed out on certin models .

But the AD has to buy a certain number of the watches, many smaller ADs can't move that many per year, so they sell them for a little over their cost to a gray market dealer who,then resells them to the public way below ADs selling price.

But the buyer does not get a warranty and often the sr# is removed , if it is ever sent in for service Rolex keeps it !

Btw the best is to buy pre owned off the Rolex forums.

[dbHunterNY]

Depends on the company's policy on it. If they ok it , rock on.

I used to work for a safe manufacturer , we could buy "seconds" at a fraction of what new ones sold for. We all resold them to friends and friends of friends for $25 or so profit ( in the '80's) . The company was glad to get rid of them.

My wife still works there, there were times I got $700 gun safes for $100! I had guys lined up at their shipping docks and we filled up pick ups and trailers with them. Pretty sure they knew Larry wasn't putting 20 gun safes in his basement .

 

this is what I was originally thinking in my post.  some companies gladly would clear inventory that otherwise would move very little.  inventory takes space which is money.  they could use that space for other product that would turn profit or better serve them.  no retail store big or small holds onto something that's not selling.  unless you're going behind the companies back and breaking what rules they had in place it's not going against ethics.