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Home  /  Library   /  Saying 'No' To Unethical Clients

Saying 'No' To Unethical Clients

by Jim Grigsby

How did you react when a client or prospect suggested a special favor, bribe, or inducement that you knew was wrong? Has a superior ever pressured you to give an inducement that crossed ethical lines?

Several years ago a client called to discuss a problem. During the call he mentioned that he and his wife were celebrating their anniversary in New York City that weekend and asked if my company could "procure tickets to The Lion King" for them. I told him that we could not. The next Tuesday he decided to "conclude the project early." I do not believe in coincidences.

The days of adding personal benefits to the deal have all but vanished. There are fewer sleazy deals closed today because service providers do not want to be labeled as unethical. Unfortunately there are still unethical clients - people who find ways to make their requests subtly and off the record.

During my career as a healthcare financial manager I worked with many consulting companies and collection agencies, 98% were ethical and never made inappropriate offers. Yes, I received tickets to ball games and rounds of golf as did all of their clients. Because these gifts were a normal part of their business and not exceptions, it wasn't a problem. No favors were asked and none were given.

The remaining companies were different. One contact bragged about how he used connections to find a client a great deal for a new fishing boat. When I said that I didn't fish, he asked if I needed a new car. Another salesman offered me a personal rebate based on the business we referred to them. Both conversations ended with a request that the company not approach me for business again.

Over the years, I've heard stories from clients and sales people about past inducements. Knowing some of the parties, confirming a few stories and factoring for embellishment, I'm confident the following are true:

  • During a negotiation session with a collection agency president, a hospital financial manager mentioned that he needed a new briefcase. He was directed to a store where the agency had an account and "purchased" a $1,000 leather briefcase.

  • A physician practice executive and his family received a one week trip to Aruba shortly after he signed a contract for computer installations in 32 physician practices.

  • Before he signed a deal for a service, a healthcare middle manager flew out of state to play a round of golf with a touring professional, who had a financial interest in the company.

  • Site visits to out of state locations have morphed into weekend trips to Vail, Las Vegas and Florida.

  • CIO's who signed contracts suddenly became requested speakers at technology user groups, even before their hospitals installed the product.

  • Meals to celebrate contracts have produced food and drink bills that rival the GNPs of underdeveloped nations.

  • College students have received expensive laptops after a parent's company inked a computer hardware or software deal.

  • Sometimes money or sex sealed the deal.

I entered the business development world for healthcare consulting companies after the tax code was revised, so I never sold under the old rules. I recall a couple prospects asking for favors.


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