I did this recently. Not exactly your situation. I had to final interviews about a week apart, but the offers came on days back to back. I accepted the first offer verbally, then when the second offer came in (Which is where I wanted to work anyway), I called back and said I changed my mind. If I were you, I would do the same, because big banks would easily do the same to you. Trust me I know, my manager at GS gave me a bad reference, just to keep me working there, because I was one of his best workers and he didn't want to lose me.
In the end, it boils down to money. go where the money is. Business doesn't give a rat's ass about you. Small or big. So, I always hold the same attitude towards them. If a small co were to beat what i'm making at this big IB now, I'd be jumping ship. I'd even give them two weeks notice. They won't do the same in return. sadly, that's the reality (i've come to learn this the hard way)... cbk
I agree with chibond. Corporate america looks out for itself so don't be too concerned about them. Be more concerned about your own security and wellbeing. At the end of the day, it's your ass and not theirs. Accept the offer and continue to interview.
Upon thinking more about it, you are most correct. My last employee job before starting this adventure, I didn't give them any notice so they couldn't withhold my sales commission. They got me anyway when they deducted that rightfully earned commission already paid from my last paycheck, received after I bailed with 1 hours notice. I did get the money though, after going to the labor board. I sat down with my wife , whom support us while get up to speed, and we figured out how to work the angles for her/us to get paid the most in mortgage banking. I call it playing the game just as the employer does when they cut this incentive or kill pensions like the airlines did/are doing. Darwinism in the employment sector, you outplay them or get played out.
The answer depends on whether you can do something you already know is unethical/morally wrong and still look at yourself in the mirror. Yes, corporations may be all about looking out for themselves but that doesn't mean that there arent' some out there that will act ethically even when their backs are against the wall. You have to decide what kind of person YOU are and what kind of company you would want to be associated with. My suggestion is ALWAYS take the high road when you can. Make it a point of establishing your career and track record as someone that people will trust and you'll probably end up standing out from the crowd. In this case, you don't have to decline the offer outright in order to interview with the larger company. You can do things that risk the offer being rescinded such as asking for more time to make a decision. But doing that does not necessarily mean that the smaller company will immediately rescind the offer - it may still be there after you've interviewed with the larger company. I doubt that they'll immediately go out and make an offer to their second choice - they'll probably save that until they know their first choice (you) is really not longer on the market. At the very least, they still may want to do some more interviews before rescinding your offer completely which still buys you time. Being upfront is not necessarily a liability... My two cents... -eLindy.
You could also try asking the smaller firm for time; e.g., say you value their offer but are are in the middle of the interview process -- and would they consider giving you one additional week to fully explore your options.
A few people already said this in a round about way; there is no morality in business. Despite what some may say. Take the offer to cover your ass, but by all means be ready to jump at a higher offer.