Business Ethics and Social Responsibility 01

Case Study No. 2

Kurt Mativo was hired by Best Friends Forever Philippines, Inc. (BFF), a pharmaceutical company, as
medical representative on October 24, 2014, after his training and orientation. He signed a contract of
employment which stipulates, among others, that
1. He agrees to study and abide by existing company rules; an
2. To disclose to management any existing or future relationship by consanguinity or af nity with
co-employees or employees of competing drug companies and should management nd that such
relationship poses a possible con ict of interest, to resign from the company.

BFF’s Employee Code of Conduct similarly provides that an employee is expected to inform management
of any existing or future relationships with co-employees or employees of competing drug companies. If
management perceives a con ict of interest or a potential con ict between such relationship and the
employee’s management with the company, the management and the employee will explore the
possibility of a “transfer to another department in a non-counterchecking position” or preparation for
employment outside the company after six months.

Kurt was assigned to market BFF’s products in the Cebu City sales area.

Kurt, the handsome, matipuno, and caring person that he is, entered into a romantic relationship with
Irahfaula Lawas, an employee of A5orM1 Pharmaceuticals (AMP), a competitor of BFF. Irah was AMP’s
Branch Coordinator in Talisay City. She supervised the district managers and medical representatives of
her company and prepared marketing strategies for AMP in that area.

Kurt actually received several reminders from his manager, Arturito Bolzico, regarding the con ict of
interest which his relationship with Irah might engender. Still, love prevailed, and Kurt married Irah in
September 2017. They had 12 wonderful and lively children since then – three sets of quadruplets. Oh
what lucky genes did Kurt have

In January 2018, Kurt’s superiors, including Arturito Bolzico, informed him that his marriage to Irah gave
rise to a con ict of interest. They informed him that he and Irah should decide which one of them would
resign from their jobs, although they told him that they wanted to retain him as much as possible because
he was performing his job well, even better than Arturito.

Kurt requested several times for more time to resolve the problem. “What if I just make her my bff
again?”, Kurt thought. His mind was really clouded of the thoughts of Irah and the thought of possibly
losing his beloved job. He was torn between two passions – his love for his lady, and his love for his
work.

In September 2018, Kurt applied for a transfer in BFF’s milk division, thinking that since AMP did not
have a milk division, the potential con ict of interest would be eliminated. This was denied in view of
BFF’s “least-movement-possible” policy.

In November 2018, BFF transferred Kurt to Davao City sales area, far from the love of his life, the perfect
piece that ts his heart’s jigsaw puzzle. Of course, Kurt vehemently opposed this, going on a rampage in
their home and throwing plates everywhere, with Irah picking them up energetically even though it was
painful, but she did it because she understood Kurt’s growing pains.

Kurt was really mad of this decision by BFF. He opposed and de ed the transfer order, refusing to transfer
and opting to stay in Cebu and continuing to perform his job.

fi
fl
fl
!

fl
fl

fi
fl

fi
fi
fl
 Business Ethics and Social Responsibility 01

Unable to move on from this situation, Kurt now comes to you, the best ethics student in the University of
San Carlos SHS-ABM.

Question:
Is BFF’s policy on relationships of its employees discriminatory and unethical? Or is it proper,
justi able and ethical under the circumstances
fi