Tips in Business Transaction: A Moral Issue

Udoidem, Iniobong
November 1987
Journal of Business Ethics;Nov87, Vol. 6 Issue 8, p613
Academic Journal
Has one the right to expect favor because he or she has given tip? Or is one obligated to bend the rule of law in favor of his friend from whom he has received tip or favor? The paper undertakes an analysis of the different tip situations, the different forms of tip and attempts to show in what sense the term tip is applicable and finally examines the usefulness of tip and its possible effect on a moral conscience. The paper argues that tip considered as a transaction wherein money or favor is offered for the purpose of gaining an advantage illegally is nothing but bribery and as such immoral. Tip as a "forced gratuity" is argued to be an organized exploitation. The paper then concludes that tip in its proper sense of voluntary and gratuitous transaction can maximize individual utility and enhance social solidarity, noting at the same time, that its possible adverse effect on the moral conscience is worth taking cognizance of.


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