Unethical business practice

[Apple Of Sodom]

I am having trouble with a global company.

I work in the high-tech medical field for a large corporation/hospital. This corporation uses a variety of vendors, some large, some small. I work with a variety of equipment from a variety of these vendors, although I do not service them. This is my day job.

I have a side business that my employer is fully aware of. I've signed all of the conflict of interest statements and stuff, and basically I really shouldn't be selling my services to direct competitors of this company, nor should I try to sell my services or products through alternate channels to the company I work for. Makes sense. This is my side job.

Recently, one of the large vendors who has equipment in my day job building had gotten wind that what I do on the side puts me into competition with them. Basically, what they sell to other places, I also sell competing products from other vendors...

So, they basically called me up and told me that they know where I work, and know a lot of the people who are high ups, and if I continue to sell my products on the side they will get me fired from my day job.

Is this even legal to threaten like that? Any steps I can take?

 

[waggy]

sure why not? they can tell who they want where you work.

 

[Brainonska511]

Originally posted by: waggy
sure why not? they can tell who they want where you work.

From his post, his company (A) is not threatening him, a company (B) that works with his company (A) is threatening to get him fired from his company (A).

 

[KillerCharlie]

How is what you're doing in the first place not a conflict of interest?

 

[Apple Of Sodom]

I guess that is true. The way I see it is that they are threatening my livelihood if I continue to offer services they offer.

Those I work with already know and don't see any issue at all with what I am doing. It would be like Dell being pissed at me because I use their computers at work and on my side job I sell HP.

 

[TallBill]

If your day job is already fully aware as you say, I'd notify them of what the vendor said and let them deal with it.

 

[lxskllr]

Call their bluff. If you're doing everything properly, tell them to go fuck themselves.

 

[waggy]

Originally posted by: Brainonska511

Originally posted by: waggy
sure why not? they can tell who they want where you work.

From his post, his company (A) is not threatening him, a company (B) that works with his company (A) is threatening to get him fired from his company (A).

yeah so? that does not change anything. while sligtly unethical its not against the law.

 

[RedFiveSW]

Since you say you are following your HR non-competition requirements, I don't think there is much "global" company can do.

 

[Apple Of Sodom]

Originally posted by: KillerCharlie
How is what you're doing in the first place not a conflict of interest?

See below. It is like this:

I work for Company A and a company like Dell sells them computers, which I use as an end user. Say Dell is a supplier for ALL of Company A.

On the side, I let Company A know that I sell HP computers.

Dell gets pissed at me when I sell an HP to someone who they wanted to sell a Dell to and then tells me that if I don't stop they will use their power to get me fired from Company A.


This company told me recently that they will let Company A know that if I am working there they will not receive as good of service from them...


Also, no, the companies are not Dell and HP. Just example companies.

 

[waggy]

Originally posted by: RedFiveSW
Since you say you are following your HR non-competition requirements, I don't think there is much "global" company can do.

i wouldnt count on that.

if teh company throwing the hissy fit is big and the choice is a lowely worker and a business contact guess who is going to lose?

it really depends on how the business threatening him wants to do it.

 

[Apple Of Sodom]

Originally posted by: lxskllr
Call their bluff. If you're doing everything properly, tell them to go fuck themselves.

That is what I think I'm going to do.

On top of it, the "global" company has a service engineer who is cheating on his wife with one of my co-workers. It seems as though we used to have VERY few problems with their system until this affair started. Now it seems as though he is always finding an excuse to fly out on the global companies dime to "fix" stuff...

 

[Apple Of Sodom]

Originally posted by: waggy

Originally posted by: RedFiveSW
Since you say you are following your HR non-competition requirements, I don't think there is much "global" company can do.

i wouldnt count on that.

if teh company throwing the hissy fit is big and the choice is a lowely worker and a business contact guess who is going to lose?

it really depends on how the business threatening him wants to do it.

That is the problem right there though. How is it ethical, or even legal, to take punitive action against someone simply because they are your competition and "know their boss"?

 

[BoomerD]

I agree there's nothing ILLEGAL about it, and unfortunately, in most instances, ethics aren't regulated.

I'm not sure what the HR department could do if you told them about the threat. Do you have any friends in purchasing who could manage to steer their business to someone else? Since you work there, there's at least the appearance of a conflict of interest if they steer the business to you...but not if they steer it to Company C.

(maybe you could leak vital information to Companies C and D and get them to bid for Company B's work)

"Threaten me with MY job will ya? I just got your business sent somewhere else."
(yes, this would be VERY unethical on the OP's part)

 

[Apple Of Sodom]

Originally posted by: BoomerD
I agree there's nothing ILLEGAL about it, and unfortunately, in most instances, ethics aren't regulated.

I'm not sure what the HR department could do if you told them about the threat. Do you have any friends in purchasing who could manage to steer their business to someone else? Since you work there, there's at least the appearance of a conflict of interest if they steer the business to you...but not if they steer it to Company C.

(maybe you could leak vital information to Companies C and D and get them to bid for Company B's work)

"Threaten me with MY job will ya? I just got your business sent somewhere else."
(yes, this would be VERY unethical on the OP's part)

Correct BoomerD. I'm not supposed to sell my stuff from side job to Company A. That is a conflict and I need a good reason + special permission if they wanted something I sold.

My director's director (an administrator at the facility) as well as the compliance officer basically said "They have contractual obligations. They can't stop servicing us. Fuck 'em." The administrator also told me to give them his name and number next time they call.

 

[Apple Of Sodom]

Put another way...

If they are trying to restrict competition by playing dirty, aren't they bordering on antitrust? Off the top of my head this sounds a bit like refusal to deal...

 

[jagec]

If the higher-ups are on your side, not much will come of this. Your "corporation/hospital" spends soooo much money on equipment that the vendors wouldn't dare to piss them off and have that business go elsewhere.

This is the first time that I've heard of such a situation, though...

 

[AreaCode707]

Best way to handle this is to beat them to the punch. Go to whoever it is that they would go to and, in a bewildered tone, tell them that company B threatened you. Ask earnestly and honestly if you're doing anything wrong, and offer to stop if you are (knowing that you are safely not).

This makes company B look like an unreasonable bully and it covers your ass if company A does actually have a problem with your side business - they now have the perspective that you were innocently doing this and weren't deliberately causing a conflict of interest, which is a reason they should extend grace to you.

If all goes according to plan, Company B gets sternly told to keep their nose out of Company A's business and stop threatening employees.