Conference 7.286::digital

336.0. "Employee / Supplier conflict of interest" by COVERT::COVERT (John R. Covert) Wed Jul 01 1987 15:44

Eric Osman originally wrote a note in this conference, offering his home for
use for two weeks for someone in the area on Digital business.

The offer of the house seemed like it really didn't belong in this conference;
it would be more appropriate in CLASSIFIED_ADS, ASKENET, or some other confer-
ence.

However, while writing to Eric, I also mentioned a problem with his offer; that
problem is certainly a topic for discussion in this conference.

The problem with Eric's offer is that Digital would consider this sort of
transaction with an employee as a conflict of interest.

At least one part of Eric's offer:

>Or Digital could save money paying us far less to put up a business
>group in our house than for some over-priced business hotel room.

would require approval of the Business Conduct Committee, since Eric would
violate the following:

		No employee may be employed by or participate in the
		business affairs of, either directly or indirectly a
		supplier, customer, or special project partner 
		without the written approval of the Business Conduct
		Committee.

As for someone staying there, while in the Boston area on business, I suspect
that the most that Eric could receive for the lodging would be the $20/day
"staying with friends" reimbursement.

Thus I suggested to Eric that he would probably have better luck offering his
house to someone who is going to be in the area on vacation, rather than
business.

/john

	Am I missing something?

	I don't see the conflict in someone's collecting rent from his
	employer for providing lodging to people with whom his
	employer is doing business.  Now if Eric is involved in the
	business of those people, it could be a different story. 
	F'instance, if I discover I'm a substantial stockholder in a
	supplier of stuff, it would likely be improper for me to
	influence DEC to load up on my company's stuff.  (But what if
	my stuff was a better deal?)

	Often the dividing lines are hard to find, but why would it be
	incorrect for an employee and an employer to do business?
	For example, why can't DEC contract with me to plow snow?
	Where does "the course of my work", for which DEC pays me a
	salary, end?

>	Where does "the course of my work", for which DEC pays me a
>	salary, end?

At the point at which DEC pays something other than your salary.

/john