SPENDING WISELY
BEST VALUES IN CARS, TECH, TRAVEL & ENTERTAINMENT
Is it okay to leave a restaurant server a stingy tip for bad service?
Yes, indeed, if the bad service is really the server's fault -- rudeness, botched orders, a bored manner. But don't penalize a server for things beyond his or her control, such as a short-handed kitchen, not enough servers or bad food. And always bring poor service and other problems to the attention of the maitre d'.
Sticking it to the little guys
I work in purchasing at a very large, highly profitable firm that often ranks in surveys as one of America's most admired companies. Several times a year, orders come down from the chief financial officer to delay payment to our vendors and also rebuff their late-payment fees. This pushes our expenses forward to improve the bottom line of the previous quarter and meet Wall Street's expectations.
I am uncomfortable with this. Many of our vendors are small, struggling firms that are dependent on our large orders. We're causing them cash-flow problems. What should I do?
Your company's bullying of its small vendors is highly unethical. I hope you tell your suppliers that you don't agree with what you are being told to do. Your company probably has formal procedures for raising ethical concerns, so use them. You will be taking a risk as a whistleblower, but this issue needs to be addressed at the highest level. Good luck!
Barter for dental work?
My dentist suggested that instead of paying for some work he did, I could make a gift of a flat-screen TV of the same value. He said this bartering is perfectly legal. I'm skeptical.
You should be. It sounds as if your dentist is trying to evade income taxes. Courteously tell him this isn't proper and ask for a normal bill.
Have a money-and-ethics question you'd like answered in this column? write to editor in chief Knight Kiplinger at ethics@kiplinger.com.
POSTED BY: AG (February 22, 2008 11:33 AM)
This is the second time Knight is wrong on the ethics as far as dentist is concerned. A couple of months back it was a similar issue with a workman wanting cash payments.
What is unethical is making judgments on other people and assuming they will not do the right thing. The reader asked if it is illegal. The answer is that it is not! Is it unethical? Only if the dentist does not report the fairvalue in his taxes and does not issue a receipt. As long as the dentist is issuing a receipt, it is legal and ethical. What the dentist does with his taxes is his business and if it is obvious with evidence of wrongfoing, the dentist should be reported to the IRS. But without any such evidence, it is wrong to assume that the dentist is up to something illegal or unethical.
Whatever happened to trusting people doing the right thing and policing one ownself?
POSTED BY: TS (July 08, 2008 05:01 PM)
Bartering is perfectly legal, both parties are agreeing on the price of the service/gift. You do have to state a fair estimate on your taxes but you also have to do the same if cash changed hands, there's no difference. Here in the Southwest, bartering is the way of the land. For our family business we regularly got paid in beef, elk meat, labor, services from another business, even a 1885 colt revolver once. Being asked to go out and buy something as a gift sounds a bit sketchy, however, but if the person already had the flat screen tv beforehand and a trade was negotiated, I don't see anything wrong with it.
POSTED BY: Josh (August 18, 2008 03:58 PM)
The payment in the form of a "cash equivalent" is perfectly legal for the payee to pay the invoice. What is not ethical and actually illegal is the evasion of the payment declaration as income received by the service provider. As long as the payment is received and taxes paid in the future all is quite ethical. Check witt your accountant and legal advisor.



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