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Case Studies
The opportunity cost
Frankie was a manager of a sneaker store for a well-known sports brand. Recently, the brand released a highly anticipated limited-edition sneaker. Only 1,000 pairs were produced worldwide, and Frankie’s store was only allocated two pairs per size for customers to purchase.
On launch day, fans and parallel goods traders flooded the store. Felix, a regular parallel goods trader, informed Frankie that these sneakers could fetch up 8 times their retail price on the secondary market. Tempted by the potential profit, Frankie began considering how to take advantage of this opportunity.
Despite the store’s policy which prohibited staff from reserving products for customers, Frankie proposed a deal to Felix. Frankie offered to assist in reserving the limited-edition sneakers for Felix, and in return, Felix had to pay him a 30% cut of the resale profit as a rebate. Felix gratefully accepted the offer.
Case Analysis
As an employee of the retail store, Frankie should always comply with the internal guidelines on product sale. By taking this opportunity for personal gain, Frankie not only violated the internal guidelines but also breached the Prevention of Bribery Ordinance (POBO). Frankie, as an agent, without the permission of the retail store, solicited and accepted rebates from Felix for reserving goods might violate Section 9 of the POBO. Felix, as the offeror of the bribe, might also be guilty of the offence.
Retail staff should uphold integrity and perform their duties with high ethical standard. Illegal behaviours ruin one’s career and create unfairness to other customers, ultimately damaging the company’s reputation.