PROBLEM: Go-Go's risk appetite, although aggressive, appears to be grounded in solid capital budgeting principles. This item, therefore, does not appear to be a problem
o. You observe that company purchasing agents wear clothing and exhibit other paraphernalia from major vendors. The purchasing department manager proudly displays a picture of himself holding a big fish on the deck of a luxury fishing boat that has the logo of a major Go-Go vendor painted on its wheelhouse. PROBLEM: Gifts from vendors can unduly influence purchasing agents to buy more goods from the gifting vendors. Purchasing decision should be free of this sort of bias.
