"Crossing the Fine Line - Remaining Ethical in Sticky Situations"

By Melanie Goodwin, Program Manager at Ultimate Ventures 

The event industry is rife with ethical gray areas which we encounter every day. The creative, collaborative and interconnected nature of our business can often produce blurry lines that are easy to cross - even when trying to do the right thing. The best way to navigate these issues is to remain aware and recognize delicate situations.

Some of the most common situations which arise in this industry are questions of creative/intellectual property, discounts, and direct contact with vendors.

Doing It Yourself

People are a service company's greatest resource. The majority of a company's budget is often spent on acquiring, keeping, and developing their staff. Therefore, the ideas and work created by staff are the intellectual property of the company and thus also of great value to a company - and thus belong to that company.

If a company proposes an excellent event idea, reproducing it without them in order to save money is crossing the line. Taking another company's intellectual property without compensating them in any way is a form of theft. While many escape prosecution, it is still an infringement on the company's rights; without them you would never have thought of that exact idea.    

If one absolutely cannot afford to pay the company to create the event, let them know that their idea is wonderful but it's not within the budget. Most companies will be happy to work to maintain the essence of the event while reducing cost, especially since the pains of the recent recession are so fresh in everyone's minds. Alternatively they may be willing to consent to the use of their idea for a consultation fee compensating them for their time, effort, and creative services.

Going Direct

If the knowledge of a service is learned through an agent, event planner or provider, be certain to book the service through them each and every time. Planners spend a lot of time and money researching, finding and vetting quality providers. Booking someone directly takes advantage of the situation and may jeopardize the vendor's contract with the planner.  This is especially true when dealing with entertainment.

While it may appear to be cheaper to go direct that isn't always the case. Planners and agents often receive volume discount rates that are not available to everyone.  Therefore, even after paying a management fee or commission to the planner the total amount may still be the same as if you booked directly. Even if this isn't the case, the total amount spent may not be much more than a direct booking rate once the value of one's time is factored in. Time is money and if using a third party saves time then it may be the most economical choice in the long run.

And if a vendor is approached by a client who wants to "cut out the middleman" and book directly, they should watch out!  If the client does not respect their planner's time and creativity, chances are they will treat others with the same lack of respect.

In this situation, the vendor should let the client know that their business is valuable, but they must book through the planner who originally referred them. This will protect any long term, repeat business from the planner and maintain the vendor's reputation as a professional and honest provider.

Taking Advantage of Vendors

Especially in this economy, everyone needs the best deal they can get, therefore many clients must request multiple bids, special discounted pricing and complimentary services. Special discounted pricing is generally an accepted practice in this industry for clients who bring high volume, off-season or repeat business. It is fair to request discounted rates and other concessions from a frequently utilized vendor, or if the event is taking place during a slow time (mid-week, off season, etc.) However, demanding that a one time vendor slashes rates drastically or dangling "future business" in order to gain discounts is a sticky situation. If one can contract that future business at the same time it is reasonable to request some discounts. But if the future business is hypothetical, it isn't fair to use it to negotiate volume pricing. Try to insure that the situation is a win-win for everyone by working with quality vendors who will work with you to reduce costs while still making the event profitable for everyone.

The increased presence of "strategic buying" and "purchasing" departments has caused a rise in the number of planners who are required to obtain multiple bids for a service. If required to request multiple bids try to truly consider each company's proposal and give them a fair shot at the business, If possible request only their standard pricing and information for due diligence purposes rather than requesting a detailed, customized quote - especially if there is no real intention of using their services. Nothing stings more than staying up all night to create a customized bid that just ends up unread in someone's recycling bin. Respect a vendor's time and they'll respect your business more; and also be willing to stay up all night for you when you really need it.

Trash Talking the Competition

Momma said it best: "If you can't say something nice don't say anything at all". Trash talking the competition reflects badly on anyone - and can damage relationships in this tightly knit industry. It is one thing to educate clients on "what sets you apart from the competition"; but referring directly to a competitor, insulting them or spreading negative gossip is counterproductive. Plus - the company you trash today may be the company you need a job from tomorrow.

 It's easy to find oneself in an ethical gray area, and we will all make mistakes from time to time. As long as everyone strives to create win-win situations for themselves, vendors and clients a lot of hassle can be avoided.

By remembering another of Momma's sayings: "Always treat others the way you would like to be treated" we will all be less likely to cross the line.