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duct to other customers?
Chuck Gray, chief executive officer of Machinery & Factory Industrial Supply says he would honor his commitment to the manufacturer, even if it meant turning down business.
"I set the moral tone for the company," he says. "If I allowed things to go on such as selling a product to anybody who wanted to buy it even if I agreed with the manufacturer not to do so, it's eroding the moral value I tried to instill. That's going to create problems for yourself down the road."
Manufacturers don't always appreciate the position that Gray takes. Grateful for the business, they look the other way and accept additional orders that rightly should have gone to another authorized distributor.
"Business is so competitive that a lot of companies are scrapping for whatever crumbs they can grab. If they have to bend the rules, they'll bend them," says Pete Cowgill, president of H&C Tool Supply. "Often, their attitude is, 'Don't tell me what I don't want to know.'"
[Subhead] A written code of ethics. Taking a head-in-the-sand approach erodes the trust between companies and their customers, suppliers, business partners, and so on, Cowgill says. What can hurt a business relationship even more is when someone makes a choice to deliberately deceive a business partner.
One of the most disturbing practices Cowgill has seen recently involves reverse auctions, where companies invite suppliers to make online bids. At some accounts where
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