Dilemma 2:

Zachary, 16, went all out for the school prom. His first choice for a prom date accepted his invitation, and his parents offered to host an after-prom party. To add a bit of glitz, Zachary asked three of his friends to share the expense of a limousine service for prom night. They agreed, so he researched the yellow pages for the most affordable limo company, made a reservation, and paid a deposit up front for half of the rental cost. The balance was due after the event. Zachary informed his friends of their share of the cost. One friend paid him immediately, while the other two friends said they would pay him later. The prom night turned out as well as Zachary had hoped it would. Several classmates raved about his limo entrance.

Back at school the next week, Zachary once again asked his two friends for their share of the rental cost. They begged poverty. Over the next month, Zachary reminded them on several occasions for their payment. He got plenty of excuses, but no cash. The manager of the limo company, meanwhile, was calling his house regularly asking for full payment. Zachary told him it wasn’t his fault; he had already paid his share. On one call, he tried to give the manager his friends’ phone numbers, but the manager wasn’t interested. He insisted that Zachary pay the balance. So Zachary abruptly hung up, shouting that it was no longer his problem. Is he right?

Batstone:

Sorry, Zachary, but you can’t slip out of this obligation. Though he surely regrets it now, Zachary represented his friends when he engaged the limo company for its service. In that sense, he trusted that his friends would deliver on his promise. The fact that they did not is indeed Zachary’s problem, and not the company’s. It’s a real hassle, but he should pay the company promptly, then figure out how to get his friends to reimburse him.

Risking your own reputation for others is usually a bit tricky, and only should be done after a great deal of thought. It’s amazing to me how often that even large corporations fail to realize that they have an ethical responsibility for the company they keep. Here’s an example: A major cable company that I was using for my home network contracted out to a third party (another independent company) its billing services. One month I received a charge for cable services that I did not use. Despite my complaint, the billing service would not correct its error. When I called the cable company, I was told that the company could not take any responsibility for the errors of the billing service. That’s wrong. The cable company does have an obligation to its customers. It can choose to bring in partners (third parties) to help it run its business more effectively, but doing so does not free it from its obligation to customers.

The excuse “we haven’t done anything wrong” does not hold much weight in a competitive business environment. A company’s reputation rests on the total experience that a customer has in the delivery of service. The take home lesson:  make promises for your friends (and your business partners) wisely.