Stakeholder Theory and Social Responsibility • Weidner “Ethics Grand Rounds” case ranking

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MGT 552 • Stakeholder Theory and Social Responsibility • Weidner
“Ethics Grand Rounds” case ranking

1. I received cases from 25 of 26 class members by this morning– thanks! Each case has an
alphabetical code (A through Y) at the top of each page.
2. Some (but not all) cases have been proofread, reformatted, or had minor edits so that the
individual cases look as similar as possible (note: I don’t edit or screen the cases). I made no
substantive changes to the content of the cases. I force-fit each case to one page – you can
resize the fonts, etc., for your on-screen or hard copy convenience.
3. Please rank order the cases – except the one you wrote – as follows:
1 = your most favorite;
2 = your 2nd favorite; etc., through the entire pool, so that
24 = your least favorite case (rank all cases 1-25 if you didn’t send a case)
4. Please enter your rankings in the attached spreadsheet in the designated (yellow) row. A
checksum (300) is provided to help you catch duplicate or missed rankings. If you didn’t
provide a case for the pool, your checksum is 325.
5. Save the file with the filename LastFirstRankings.xls, where Last and First are your names,
e.g., my file would be named WeidnerKenRankings.xls.
6. Send me your case rankings via email by 12 noon EDT on Tue 11 Sep.
7. Contingency (plan B): If your e-mail is suddenly unavailable, go to the Canvas website and
send me an email from there and attach your file, and send a copy to yourself so you will
know whether or not the attachment got through. Also, make a posting on the Clarifications
DB to alert me to your technical difficulty. Due to the size of our class, I cannot intake
rankings by phone. Please note: There is no plan “C.”
8. I will maximize the match of the assigned cases to each class member’s preferences, and
you’ll get your group membership (26 class members likely means 7 cases will be assigned
to keep case group size to 3-4 members), assigned cases, and in-class discussion date by
Wed 12 Sep. Folks who don’t indicate their case preferences will be randomly assigned to a
case (first option is other folks who didn’t provide rankings). You’ll also learn which cases
other teams have been assigned so you can read the appropriate case(s) in advance of its
in-class discussion.
9. You’ll receive a guidance document for the group case. Your presentations of your decisions
and rationale should be both brief and informal. Your group should lead the class’
discussion of the case. We’re after the issues and the processes we use to resolve them.
10. In case you’re curious…the cases were originally roughly “alphabetized” based on the first
few words of the case.
This looks like a great set of cases. Give a holler if you need any additional information. ckw
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Case A
A restaurant is a place where people are served by the owner and his staff with a menu of food
and beverages. The restaurant may have a specific list according to the concept of the
restaurant and the availability of products in the market. There is a dilemma about the ethical
behavior of restaurant owners about the products they serve in their restaurants regarding the
health of the customers and how the operations of the restaurant affect the surrounding
environment. The real discussion for a restaurant is not to be ethical or not, but to be honest
with the provided products and ingredients in the restaurant. Having an ethical behavior in the
management of a restaurant lacks practicality because, from ethics, the best recommendation
that ethically a restaurant owner could provide to a customer is to eat in his/her restaurant
because the home-made food is healthier and cheaper than the restaurant food.
From my personal experience I cannot take an “ethical” position to protect the health and
interest of the customer because to know if a customer has alcohol or lactose problems, to
protect his/her health is necessary to know the medical record of the person and that goes out
the scope of the restaurant. If I am the restaurant owner, I cannot guarantee the food served in
the restaurant is healthy for the customers. For example, a menu will have a different effect for
an athlete than to a no-lactose tolerant customer. It is not useful to use an ethical approach in
the restaurant management but to use an honest speech. Using an honest speech is preferable
for me, the manager, the employees, and the customers. The honest speech will say what the
target of the food, the quality of the ingredients and the level of fat that the customers will eat
in the restaurant is. The availability of non-alcoholic drink and dessert and the purpose of the
restaurant to make a profit to be sustainable over time.
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Case B
At a substance abuse treatment facility, morale has been declining precipitously in the
admissions department. Day in and day out, they field phone calls from struggling patients and
their family members in moments of true crisis. They are tasked with helping these callers
navigate their way through what is more often than not the worst day of their lives. None of
them would contest the fact that their work is mentally and emotionally taxing.
Healthcare facilities obviously generate revenue through treating patients. The admissions
department is responsible for filling the facility’s beds, and its performance is therefore directly
correlated to the success of the company as a whole. Employees of the department previously
complained that they received the same compensation whether they admitted twenty patients
a day or five patients a day. To address this, the company implemented a performance bonus
program at the advice of a consultant. The bonus program tied objectively measurable
performance indicators to financial incentives (i.e., number of patients admitted, total dollar
amount of copayments collected over a time interval, etc.). The bonus package proved to be a
real hit with the line staff, as well as serving its intended goal of boosting their output. For
months on end, the company hit its budget goals, and the employees benefitted financially.
During the month of December, 2017, the company experienced an inordinate number of IT
issues. Relocation of an outpatient office and transferring numbers between different phone
vendors somehow took out one of the company’s main phone lines for a period of one week,
which clearly cost the company business. The admissions manager estimated the loss to be in
excess of $120,000 of revenue. The department’s employees protested that they were counting
on bonuses to help pay for holiday gifts and that the decline in performance was not their fault.
After all, they had come extremely close to meeting their goals despite this setback. Rumors
were spreading that veteran staff members were interviewing elsewhere. The executive
director acted rashly and calmed a room full of concerned employees by telling them that he
would be approving the performance bonuses even though the targets were not quite met.
The only problem, unbeknownst to the staff members, was that the only individual able to
approve the performance bonus was the CFO. The admissions manager later approached the
executive director, to whom he reported, and inquired as to whether or not he had already
obtained approval. The executive director instructed him to simply submit the performance
report and bonus payouts to the CFO under the pretense that the targets had been met, as he
did not believe that the CFO even knew what the targets were.
This placed the admissions manager in a quandary. His department was likely structuring their
holiday plans under the impression that they would be receiving bonus checks at the end of the
pay cycle. However, intentionally deceiving a C-level executive was not exactly a favorable
alternative. On the other hand, by coming clean, he risked incurring the wrath the individual to
whom he directly reported, and potentially that of the staff as well.
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Case C
At the end of 2016, I was looking for a new car due to my current car breaking down repeatedly throughout
the year. After weeks of intense research of looking at cars on numerous websites and looking at cars at
dealerships locally I finally found a car that fit my needs completely. I had to travel a distance to a dealership
in the Lititz, PA area. I am someone whom is an avid car person and wanted a German luxury, sports car that
wasn’t overpriced and had low mileage. At the dealership, I test drove the car a couple of times and went
over the full Carfax report in depth with the sales team. The Carfax report showed a completely clean history
for the vehicle. It only had a couple of owners including one being a company car. It had routine maintenance
service at dealerships in the Philadelphia area such as oil changes and brake fluid flushes. It didn’t even have
any open safety recalls that I would have to take care of as owner. The dealership had recently put on brand
new tires and brakes on the car. After thoroughly reviewing the Carfax and asking questions to the sales team
such as whether the car had ever been in an accident, I was told the car was never in an accident. I decided to
buy the car, which was under $20,000 and had less than 20,000 miles for a German luxury, sports car.
After a couple of months of sheer driving pleasure with the car, one night I had come back to my apartment
after a night out at the movies and discovered a white scratch on the back bumper. It had appeared someone
had purposely scratched the car, so I took it to a local body shop to get an estimate. The next day I received a
troubling call from the body shop letting me know they had discovered a serious problem with the back
bumper. They noticed the back bumper was slightly raised so they decided to take the bumper apart and
found a patch up job underneath including a bent metal rod that holds the bumper together. At that point
they realized the car had previously been in a serious accident. They then took apart the front bumper and
noticed some further patch up work underneath. Once they put together the full estimate the damage came
out to around $2,500 for all the repairs. I called my insurance company and had them run a full investigation
on the car and see if the VIN # pulled on any of their advanced systems. It came back with a hit a couple of
year’s prior that my car was involved in a multi chain car accident. My insurance company couldn’t disclose to
me the name of the individual that had leased my car during the time of the accident.
My insurance company was able to provide me the name of the insurance company the individual used
during the time of the accident. Unfortunately when I called the insurance company they couldn’t provide
any further details to me other than that my car was involved in a multi chain accident on a specific date in
the Pittsburgh area. Based on my findings it was basically concluded that the individual who had leased my
car was paid out by their insurance company and decided to go to a private place or a friend to get the car
fixed at the bare minimum and pocketed the rest of the money. As a result of also not going to an accredited
body shop to get it repaired the accident was never reported on the Carfax report. At this point my hands
were tied with not being able to track down the name of the individual who had leased my car and caused
me all this pain. I ended up paying the $2,500 out of pocket to get the car completely repaired properly. Once
this was done my goal was to go after the dealership that sold me the car or even inquire with the actual
German car company to get refunded for the repairs. I didn’t have much luck with either as the dealership
kept denying that they had no idea the car was in an accident despite all my questioning to them before
making my decision to purchase it. The German car company opened up multiple cases in house with their
finance department but concluded that they couldn’t provide any financial assistance to me for my problem.
Finally I decided to really escalate it with the Pennsylvania government by taking the case to local court to go
against the dealership in Lititz, PA that sold me the car. I wanted the court to find the dealership guilty for
knowing or needing to have a better system in place to determine if a car they are selling was in a previous
accident or not. I was looking for the dealership to cover for me all the repair losses that I had to incur.
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Case D
Ca company is an Egyptian diversified manufacturing company active in household plumbing
tools, iron, and metal and provide these parts to many countries and Gulf Cooperation Council
(GCC). Ca company is a strictly business to business seller also they do not warranty on all its
parts. Most of Ca company revenue comes from sale of household plumbing tools. Foreign
competition could produce the same products in Ca company and ship them abroad for a little
less money than Ca company. Also, there is a huge pressure from costumers for Ca company to
reduce slightly their price on these household plumbing tools and electrical cables, however, Ca
company rise the prices because the ship and manufacturing materials are rising. Ca company
already has strong tight profit margin and they are working to reduce costs in manufacturing
overhead.
Hassan works as the managers of product design group and he asked to find solutions to
decrease the costs of the household plumbing tools and electrical cables. This idea has been
working on it for year and management is exciting to get results. Hassan assigned a team of
engineers to design and produce an alternative household plumbing tools and electrical cables
with uses less material and labor.
This option of alternative should be reduced the cost until 55% from the original cost of the
products but this alternative design approximately may achieve the required profits, but this
idea also may fail within year and half.
According to the design which the Ca company will increase in their profits Hassan will get more
features, increase in his salary and comprehensive insurance health for his family.
However, the new design probably affected adversely in many people houses and it caused the
fire because the low quality of household plumbing tools and electrical cables.
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Case E
College was everything that Timmy imagined and then some. Athletically, Timmy was a member of the
football team at Hawks University, which was the most popular sport on campus. Not only was Timmy
fortunate enough to be on the team, but he was offered a full scholarship for football. Ultimately, the
substantial scholarship was the reason Timmy chose Hawks U. At home his family did not have much
and wouldn’t have been able to send Timmy to college without a large scholarship. On the field, Timmy
was the best inside linebacker on the team leading Hawks U in tackles last season. Through Timmy’s
leadership and performance, he was named one of the four captains of the team for his upcoming junior
year. In the classroom, even though Timmy was no rocket scientist he worked hard to earn solid grades
and was well on his way to a degree in business administration. During Timmy’s freshman year he met a
beautiful girl named Nicole and they have been dating since.
Situation: Junior Year / Fall Football Season / (Timmy & Nicole both turned 21 over the summer)
As the fall semester progressed, Timmy noticed that Nicole began visiting her friend Tiffany who lived
off campus. Nicole reasoned that she shared a major with Tiffany, so they took many of the same classes
and studied together. To Timmy, it did not seem like anything was wrong since Nicole was a biology
major who took some of the most challenging classes at the University.
Fast forward to the end of the football season, the team had another successful season. Timmy and the
team made it all the way to the conference championship where they came up just short of a
championship title. Individually, Timmy was one of the top performers on the team again. Through his
performance Timmy earned a spot on the all-conference team and nearly earned All-American honors.
Maybe professional football might be in Timmy’s future.
Soon after the season ended Timmy ran into Nicole’s friend Tiffany on campus. Of course, Timmy asked
how her classes were going and they eventually talked about Nicole. Timmy mentioned that Nicole was
thankful for Tiffany’s help with the classes and Tiffany said that she hasn’t seen Nicole or been in a class
with her since their sophomore year. Upon hearing this, Timmy decided to do some investigating. The
next time Nicole mentioned she was going to study with Tiffany, Timmy decided to follow her to see
where she was really going. Eventually, Timmy followed Nicole’s car all the way to their head coach’s
house (coach Richards). After returning to the house the next morning, Timmy saw that Nicole’s car was
still in the driveway. He knew he was going to have to confront Nicole.
After a long and heated argument, Nicole never admitted to sleeping with the coach. Nevertheless,
Timmy and Nicole broke off their relationship and Timmy began to struggle academically. At the end of
the semester Timmy had failed three classes and was called into coach Richards’ office. Just when
Timmy didn’t think it could get any worse, coach Richards informed Timmy he was being kicked off the
team due to his poor academic performance and failure as a leader. Upon hearing this Timmy was
furious and threatened to inform University administrators about the situation with Nicole. Coach
Richards then denied anything ever happened, reasoning that Timmy would never be able to prove
anything. Furthermore, if Timmy tried to go to school administrators coach Richards threatened to cut
his scholarship. Timmy knows that without the scholarship he would never be able to finish school, but
he loves football and wants to have a shot at the NFL. Since his grades have dropped considerably, it
would be hard for Timmy to get a full scholarship at another school. Since Timmy was kicked off the
team, his teammates are scared to speak up and support Timmy. What should Timmy do?
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Case F
Company X had originally been having trouble filling the position of Accounts Payable
Supervisor. The previous individual in this position was fired for wiring $500,000 to hackers in
London without the Director signing off on it. There was a three month gap between her
release and the hiring of our current AP Supervisor. There was one intern that worked under
the previous AP Supervisor and when the new supervisor was hired, he left the company. It felt
like the Accounting and Finance department couldn’t catch a break. The work was being split up
among the remaining people in the department and causing a lot of stress to these workers.
After one month and few interviews, the Director found a man named Bob to come in and fill
the data entry intensive position of the AP Intern. Unfortunately, he lasted about three weeks
and had to be let go for making inappropriate comments to multiple women in the department.
Now this department has experienced one employee who went behind the back of the Director
and wired hackers money, and another that harassed women in the department. The stress of
finding a good, qualified candidate was increasing. One month later Karl was hired to fill the AP
Intern position. Karl always comes into work early and stays the whole work day. He is nice,
personable, and easy to work with. However, Karl’s work is below average. He makes multiple
mistakes per day and works at an extremely slow pace. These mistakes are not only affecting
our financials, they also slow down other workers. Employees in the department have to take
time out of their busy day to correct his mistakes and show him, time and time again, the
proper way to complete simple data entry tasks. It has reached the point where the director is
no longer certain that having him in this position is speeding up any of the processes relating to
AP.
The director is now questioning if she should fire him because of the fact that he is slowing
down a process that really needs to be accelerated. Should she keep him on the team because
he gets along with everyone really well? Should she keep him on the team because he is better
than the last intern in his position and we’ve had a difficult time filling the position? Or should
she let him go because he might not be the best fit for the position?
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Case G
Cool Tech is a successful technology company that specializes in selling computer software.
Clients spread across many different industries such as healthcare, banking, retail and much
more. Sales teams are created to close deals with clients and sell them the software that they
need. Each sales team is made up of seven sales members and one manager. Bob has been a
sales manager at Cool Tech for three years and has had the same seven people working for him
during that time. Bob has a compensation plan that earns him more money when sales are
evenly distributed throughout his team. Thus, it would benefit him for everyone to make
multiple sales, rather than one person closing every deal.
Sarah and Ashley both work for Bob, and this quarter Sarah has made three sales, while Ashley
has made none. Everyone on Bob’s team has made a sale this quarter, except for Ashley.
Furthermore, Sarah is the only one on the team to have made multiple sales this quarter. Bob
decides to organize a meeting with Sarah where he will propose the idea that she should give
one of her sales to Ashley so that he can make more money because of his compensation plan.
In doing so, Bob will pay Sarah extra money under the table, making her earn more than what
she would have earned on the commission from her original sale. No one should find out what
they are doing because when a sale is finalized with a customer, Cool Tech is credited with the
sale, not the individual sales member. The commission on the sale is what is being transferred
from Sarah to Ashley, making it a purely internal deal. Sarah is on her way to the meeting with
Bob and must decide to take the deal or not.
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Case H
David is a Business Consultant for a mid-sized Franchised based Gas and Convenience Store organization
based in the South-Western United States. As part of David’s core roles, he is accountable for growing
the revenue base within an assigned territory, growing the brand’s reputation, and is responsible for the
full Profit and Loss Statement of a 20 location group. David is 2 years into this assignment, with 1 year in
this group. Gas-And-Go operates on a franchised business model, in that, locations are sold to
franchisees, who in turn operate one or more locations. The new business owners are accountable to
adhere to the policies of the brand. These policies include among others, adhering to all local, state, and
federal labor/business laws, safe and consistent food safety practices, demonstrating industry leading
customer service, cleanliness standards, and adhering to Gas-and Go’s 24 Hour business model.
Franchisees are independent business owners, who must operate within these guidelines, but have
complete and total ownership over the short and long term operation of the location. Additionally,
Franchisees gain access to Gas-and-Go’s industry leading business model and resources.
One of David’s new stores is located in Glennville, New Mexico. Glennville is an economically depressed
area, notorious for high crime. This location is no stranger to violent incidents. Among a higher than
average Incident Rate (defined as theft, police activity, and property damage), the store is also among
the top 3 stores in the 400 Store Market for armed robberies. In one incident in 2012, a cashier was
complying with an armed robbery, but was shot and killed during the transaction. Since that time, there
have been sporadic to regular incidents, however no other injuries have been reported.
Despite the high Incident Rate, the Glennville location is one of the highest grossing Sales stores in the
Market. Due to its close proximity to the Route 7 Interstate Ramp, the store receives constant traffic
flow through the morning and into the evening, before slowing down during the overnight hours.
One year into taking on this assignment, David has noticed a large uptick in violent crime in the area.
There has been more property damage to the store, and an increasing rate of robberies, which in turn is
hurting customer traffic and sales. The Franchisee has expressed to David, and leaders of the local
Franchise Owner’s Association his concern, and his wish to have the store closed overnight, resulting in
the store running a non-24 hour operation. David knows that closing the store overnight will result in a
loss of sales, and will certainly impact his job performance, as he will also lose any chance at making his
revenue goals this year.
David has already partnered with local Police, who in 2 separate meetings with the District Captain, have
told him that they are unable to patrol the area any more than they already are. Budget cuts in 2014
means less patrol cars on the road, and there are other areas in the jurisdiction that require more
immediate attention. David has raised the issue to his Market President, who is not in favor of closing
the store, however did provide additional camera support, and increased parking lot lighting in the area.
This has not solved the problem, and David is concerned that the crime is out of hand, and will result in
bad business, or worse.
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Case I
During the summer of 2018, I worked as a Budgeting and Planning Specialist for the budget and
planning department of DA company. I decided to spend my summer to develop my analysis
and financial skills that I have built during my undergraduate program. DA holding company has
a high reputation in financial services and hence it was a great opportunity for my career. Since
1969, the DA company has been working under as a developer and the controller in financial
services for health, hoteling, foods, education, and many other sectors in Jeddah city. As matter
of fact, one of the institution’s main objectives focuses on the development of individuals and
communities through the provision of training, education and rehabilitation programs that
benefit the members of society and help develop the lifestyle of the society as a whole. From
this perspective, the Group established an integrated management within the main structure of
the Group, which is responsible for the planning and implementation of social development
projects.
During my training, the public security department received a call about a ladies’ restroom that
was occupied by a man who works in the finance department. In the details, an unidentified
man was arrested by the public security department and had no information record in the
Human Resources Department system. When our supervisor and I tried to open the restroom,
we smelled cigarettes from inside. After we have informed the public security department, they
opened the cameras to see who was the last person that used the restroom and locked it. The
investigations revealed that he worked for a company’s employee to perform her duties and
use her authority to attend and leave using her own ID card when we thought she was absent
and her office is closeted. He was reported when he needed to use the bathroom and only had
a ladies’ restroom key, and he admitted that he was working for a lady who was absent to get
money by doing this.
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Case J
Ethical dilemmas take form in a number of arenas. Whether an ethical predicament takes place in a
corporate setting, school, field, or the oval office, it is usually the responsibility of a few to research,
analyze, and execute a decision on the behalf of all stakeholders involved. This is a case of one coach’s
responsibility for determining the fate of a student athlete on behalf of the team, athletic department,
alumni, and fans.
The summer of 2017 was a transitioning year for Ethical University’s athletic program and the men’s
curling team. The team had a historically strong record of performance including 7 NCAA national
Championships, with the most recent in 2014. The success of the 2014 curling team was followed by a
lull in performance and downward trajectory which did not live up to expectation of the athletic
department, alumni, or fans. In May of that summer the teams entire coaching staff was either let go or
would not have their contracts renewed for the start of the following season. While the team’s athletic
historical performance was strong, a record of misdemeanors or arrests due to alcohol or drug related
incidents contrasted the program’s athletic success.
Offenses from the team ranged from misdemeanors to more serious crimes. The most extreme case was
the murder of one female student athlete by a member of the team on May 20th 2010. The player was
arrested, detained, and found to have had high levels of alcohol and cocaine in his system when the
incident occurred.
In 2013 the athletic administration re-established its drug policy and deployed a 3-fail drug test system.
One failed test, resulting from a random negative urine test or a drug and alcohol related offense
(misdemeanor, public intoxication etc.) was responded with an expensive protocol including regularly
administrated drug screenings and mandatory therapy. A second failure resulted in the student athlete’s
suspension while a third failure resulted in dismissal from the athletic department and a revoked
scholarship. Three strikes and you’re out. The men’s curling team had kicked off 2 players due to
protocol over the course of 2 years preceding the coaching transition. The new coaches were adopting a
program with as much success as it had dereliction. The hopes from stakeholders that the program
could be turned around.
In early August, not a month before the start of classes and when student athletes would report back to
school, Ethical University hired a head Coach and two assistant coaches to replace the staff for the 2017-
2018 season.
Head Coach, Zingler, had his hands full immediately. In July of that summer a team member and starting
standout player was arrested with cocaine drug possession. It was his first incident. Media presence
around the story took off. Coach Zingler had to approach the issue without knowing the full extent of
athletic policy, team dynamics, or downstream affects. The athletic director recommended to set an
example by kicking the player off the team while team captains independently voted in a unanimous
decision to keep him on the team.
As Coach Zingler, what would you decide?
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Case K
Fund Me, Inc. is a financial services company that has a niche target market. They offer financial
services for police officers and their families throughout the United States. Because of their
target market, Fund Me limits their advertising and has strict rules regarding who they
advertise with in order to protect their brand’s safety.
In June, Mark Sellers, the new CMO of Fund Me, decided to revise their brand safety rules in
order to allow their advertising firm to have an easier time finding partners they could work
with in order to maximize their reach. When going through the company’s current list of
partners he realized that there was currently little to no Spanish speaking programs and
websites that they bought media through. He knew that at least 20% of active police officers
were Hispanic, not to mention the number of retired police officers and their family members
who might also be eligible to purchase their products that could also be Hispanic.
Mark spoke other individuals on his team to try and figure out the reasoning behind this deficit.
Linda Cramond, a Senior VP for Fund Me, informed Mark that the reason why they restrict
advertising on Spanish speaking programs is because their telephone system does not currently
have a Spanish option. If a potential customer were to call for information, they would not be
able to speak to someone with ease. Therefore, Fund Me eliminates these partners to avoid any
potential confusion or frustration that could occur. Linda states that while she doesn’t
necessarily agree with the practice, it has been in place since she started working at the
company 7 years prior. In order begin advertising on these outlets, they would need to first fix
the telephone system which does not seem to be on the table anytime soon as there is
currently no bandwidth on the IT team to fix the problem and no money to hire a third party or
more employees to work on a solution.
Mark decided to speak to other employees in different departments as well to gauge their
reactions to this potentially huge problem. If they knew about the issue, they reacted the same
way as Linda. Not necessarily agreeing with the practice, but also not doing anything to try and
come up with a solution.
After talking to other employees, he dives into the problem further and finds that there are no
Spanish options on their website either, further isolating a large portion of their target market.
While the reasoning makes sense to Mark, he is outraged at the fact that they are eliminating a
whole group of potential clients because of an issue that is fixable. If consumers were to find
out about this, Fund Me might be thrust into the media in a less-than favorable light as well
which would be difficult to control and would almost certainly damage their brand image. The
marketing department is not even allowed to advertise on any media that has Spanish. This
includes television shows where the majority of dialogue is in English, but some of the
characters speak Spanish on occasion. This knowledge frustrates Mark because of the potential
Hispanic customers could have since they are the second largest ethnicity group in their target
market.
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Case L
“How dare you think about stealing my client after years of mentoring you and vying for your position in
this industry. We will never be working together again,” the president and founder exclaimed as he
slammed down the phone. The small world that is the music industry can be a ruthless business that
rewards those who have the ability to be forceful both in pursuit of clients as well as personal gains. The
office of SG Media, named after its founder and president, Saul Goldstein, is situated just outside of
Philadelphia and is one of the few music publicity firms that has been able to cement a solid reputation
not in one of the major music industry cities of Los Angeles, New York and Nashville.
With just four employees including Goldstein, SG Media needs to be extremely careful in strategically
planning each year and hold as many clients as possible in order to continue to prosper in this tough
industry. Sarah, who had been there since coming on as intern 8 years ago is working 10 projects single
handedly and she prides herself on providing great service to each client no matter the popularity of the
artist. Mark, who has been with SG Media for 5 years also deals with 10 clients. His connections from his
past as a performer have allowed him to land some larger clients for the company and he typically pays
little attention to the smaller clients even though they all pay the same rates for service.
Goldstein, an old school manager, makes it a point to meet with his employees once a year to check up
on how they are feeling in the company and whether they are comfortable in their roles. Throughout
the last 4 one on one meetings, Mark has consistently asked for raises since he feels that his position in
the company is crucial and he is aware of the leverage that he has over Goldstein. If Goldstein were to
lose one of his employees at any given time, business would take a serious decline and it would be very
difficult to handle the number of projects while finding another employee to fill the void. Sarah,
throughout her meetings with Goldstein has had productive conversations with him and continuously
lets her work show for itself. Goldstein has rewarded her with a raise two times within the last eight
years and Sarah has never asked for one since she feels that Goldstein would treat her differently
knowing that not just the work was on her mind but the money as well.
Over the course of Mark’s five years he has been forceful enough in his position to make considerably
more than Sarah even though they are both Senior Account Publicists and handle the same number of
clients. Goldstein has always been reluctant to give either one of them their raises but knows that
without either one of them the business will suffer. Goldstein is also getting to the point in the business
where if he doesn’t expand and get a new segment of clients he most likely will not be able to afford
raises for both employees in the future and may have to choose one.
The year-end review is coming up shortly and Sarah is meeting with Goldstein first. Goldstein has
allotted enough money to give one of employees a raise. Given that Mark has asked for one every year
since coming onto the team, Goldstein knows that he will ask again. He is hopeful that Sarah will
continue her pattern so that he will be able to give Mark the raise and keep his business afloat. He is
also confident that Sarah is more willing to accept the fact that he “would not be able to afford a raise”
and she would continue to do her job to the best of her ability.
Sarah and Goldstein sit down for coffee. After the review of good work Sarah states, “Saul, I think I
deserve to be making more money.”
14 of 26
Case M
I will begin this story from the eyes of a teacher involved at the school which we will refer to as
City School. The case involves 3 students, the victim who we will call V and the 2 attackers who
we will call X and Y. The attackers are accused of assaulting the victim by throwing them over a
6-foot fence at a party outside of school hours and off campus. V is a sophomore weighing 95
lbs. and 4’ 11”, X and Y are both over 6 feet tall, weighing 200 lbs. Other students have reported
witnessing the assault with one student feeling it necessary to report it to me during school
hours on campus. “Sir, I feel for the safety of V, I need to tell you they were attacked by X and Y
over the weekend, who while drunk thought it was funny to throw V over a high fence, V is
pretty banged up”.
The assault was seen by multiple students at the party but only one student has come forward
and spoken to me about it, I have raised the issue with the Vice Principle and Principle who
have informed me that the matter will be dealt with. City School is a prestigious private school
costing parents $50,000 per year. The Principle and Vice Principle have decided not to inform
the board of directors but make the decision on what to do regarding V, X and Y themselves.
One week later the principle informed the leadership team of what had happened and opened
the floor to suggestions. One teacher said “Imagine the headlines, your job could be on the
line”, another said “We have to do something to stop this happening again!” I decided to speak
to V who was a student in my class and ask how they felt about the situation, they said “with
my size, this stuff happens a lot more than you think Sir, I just try and avoid those people in the
future”. I was surprised at the way they brushed it off as okay, but they seemed happy that it
was in the past.
What should the school do in this situation?
15 of 26
Case N
I work for a National Healthcare IT Recruiting company named Dynamite Healthcare IT as an IT
Recruiter. I am one of twelve recruiters on the Recruiting Team. Our job is to fill open IT
positions that our Sales Team procures from our clients who are Hospitals and Health systems
across the nation. We fill or place qualified IT consultants in these open positions, and by doing
so, recruiters earn an 8% of the weekly amount of money the consultant generates for
Dynamite Healthcare IT as commission. Due to a recruiter’s ability to earn high commissions
through many consultant placements, a very competitive and ruthless work environment is
created. Consultants are also typically disloyal to recruiters and will work with whichever
recruiter brings the candidate the job with the highest hourly rate. Due to this, a major concern
for recruiters are the rules of candidate ownership as they establish which recruiter owns and
represents each candidate therefore determines which recruiter earns commission off of each
candidate. In the past, when a candidate’s ownership has been disputed on a placement
between two recruiters and the dispute is brought before the Recruiting Manager and
Dynamite’s President to decide who receives the commission. Typically, the President and
Recruiting Manager have awarded the commission to the recruiter who placed the candidate,
whether or not that recruiter rightfully owned that candidate.
In February of 2017, the candidate ownership rules were very stringent and recruiter’s
candidates were being stolen and placed by other recruiters. To rectify this, the Dynamite’s
President came up with new candidate ownership rules in March of 2017 which can be broken
down in to three parts. Firstly, a candidate must have a complete profile in Dynamite’s system
which means the candidate’s profile must include the candidate’s contact information, pay rate
and updated resume. Secondly, the recruiter must have an established a relationship with the
candidate through email or phone call conversation. Thirdly, a recruiter has 48 hours after a
new job is entered in Dynamite’s system to reach out to all of their available owned candidates
that are a fit for the position. After the 48 hour time period any other recruiter may reach out
to those candidates. The only way for a recruiter to lose ownership of a candidate is if the
recruiter does not reach out to candidate within 48 hours timer period and another recruiter
speaks to the candidate after the 48 hour period and submits the candidate to the job.
In April, Tom spoke to, submitted and placed one of Jon’s candidates within the 48 hour period
thereby effectively stealing a candidate from Jon. Jon had completed the candidate’s profile
and had a long standing relationship with the consultant. Jon had also reached out to the
consultant within the 48 hour period, but the candidate only responded to Tom. Jon brought
the situation in front of Dynamite’s President and Recruiting Manager to decide the outcome of
the situation. The President and Recruiting Manager have to decide if they will follow
precedent and award the commission to Tom who placed the candidate, but stole the
consultant from Jon, or follow the new guidelines and award the commission to Jon.
16 of 26
Case O
In a small women’s clothing store in a mall, a store manager vacancy had to be filled. For nearly
a year, an acting manager and an assistant manager were running the store. They had hired a
team that worked together to make sales goals. A replacement was found with years of
experience at various other stores.
Chantelle came to the store eager to get started. She liked the store’s product and wanted a
new challenge. The target demographic of this store was a young, professional woman, which
was much different from the teenager crowd of her past stores. Knowing the store had been
without an official leader for so long, Chantelle was confident her management was what the
store needed.
After a few months, Chantelle fell into a rhythm at the store. She felt comfortable with the
employees and her responsibilities. She went into the backroom office to check the daily sales
other stores in the district and get some work done when the work backed up. She was able to
take extra breaks when needed. Chantelle was enjoying the flexibility she had as store
manager. The flexibility also allowed her to take some liberties with the strict dress code policy.
Six months later a manager position needed to be filled. Chantelle hired a former assistant
manager from a high quality jewelry store, Amber. Once the new manager started, a gap
started to form between the associates and the managers. Amber was able to take extra breaks
like Chantelle and break dress code. The current associates began to complain that Chantelle
was favoring the managers.
One associate said that she was told that she could dress more appropriately to code during a
review even though she was dressed to code. Another was told that, for four-hour shifts, the
associates should not be encouraged to take their legally required 15-minute break. Amber had
also enacted a practice of not scheduling associates instead of letting them go when she was
not meeting goals.
The habit of Chantelle’s that bothered the associates the most was her extra breaks and time in
the office. This time left an associate on the floor by herself, which left the store vulnerable to
theft in the areas now left unmonitored.
The associates did not trust Chantelle and felt she was abusing her managerial power. Chantelle
and the other managers felt that there were no issues with the situation.
17 of 26
Case P
In the summer of 2018, at Camp Highlands in Northern Massachusetts, an assistant director
was being questioned for a controversial decision she had made about a possible gun violence
incident.
On Wednesday, July 11th, a child at Camp Highlands spoke the words “I am going to shoot you”
toward another child. A few other campers at the camp, who went on to tell their parents or
guardians, overheard the incident. One camper’s mother reached out to the assistant director,
Tina Brown, at 10 o’clock that same evening explaining what had occurred and that her child
was afraid to attend the camp. Knowing this information the assistant director did not reach
out to the police or any type of authority until eight o’clock the next morning.
The camp busses start picking up campers at 8:30 in the morning on camp days. By the time the
information was dispersed from authorities to transportation the child could have already been
on the bus endangering campers, counselors, and the driver. Knowing this information the
associate camp director has to make a decision about how to reprimand the assistant director.
The assistant director Tina has been working at the camp for 36 years and has never shown bad
judgment before this incident. She was a great director that had the respect from all of the
parents that sent their children to the program. At the camp there is no protocol set in place or
even training for any of the staff if this incident occurs. Because of this she had no experience
or way of knowing how to deal with this violent occurrence.
The child who spoke the controversial words was immediately expelled from the camp for
possibly endangering the 300 other children. The police, under protocol, were then sent out to
her house to check her mental stability as well as inquiring that there were no guns in the
residence she was residing in.
Since the child had been dealt with the associate director has to make a final decision about the
assistant director, Tina, in order for the incident to be settled. Many of the parents are
expecting this incident to be resolved and the employee to be reprimanded in order for them to
feel that their children are safe at the camp. If Tina is still involved with the program some of
the parents may not feel that she will protect their children above anything else. This could lead
to drop of enrollment within the camp.
18 of 26
Case Q
Like most international students, I found a full-time job during my Optional Practical
Training(OPT) term and expect that my company can support me to get the H1B visa (work visa)
and allow me to stay in the US. I am a sales manager of the company GoodChild Inc. and the
performance of the team that I lead is always the first in the company for the past 9 months. If
my team can keep the No.1 performance ranking in the next two months, I will be promoted to
the position of sales director, so my salary and bonus will be twice of current. The most
important thing is that my company can support me to get the work visa if my team keep the
best performance. The reason that my team can rank first for nine months is because I brought
the biggest customer, RT-Marts group, to the company. RT-Marts group is an international
hypermarket chain in China. Because of the language advantage, this biggest customer has
always been responsible for my team’s success.
A few days ago, the new general manager of RT-Marts group, Lin, who also is the son of the
CEO of RT-Marts group, came to America. I hosted a dinner for him because I wanted to build a
good relationship with the new general manager. During the entire dinner, we talked very well
and the atmosphere was good. At the last moment of the dinner, Lin invited me to visit his new
limo. In the car, Lin told me that he expected the price that GoodChild Inc. offered can to
decrease to $800 per units from $900 (the cost of the product is around $350). I told Lin that a
decrease to $800 is almost impossible because our company already offers a $50 discount to
RT-Marts, so that may be very hard to do. After some conversation, we finished this dinner.
When I got back to home, Lin sent a message to me. In this message, Lin promised me if I can
decrease the price, he will personally give me $20 kickback per unit. Their group would consider
increasing their demand to 10,000 units as the last order of this year, and if I can keep the low
price, they will continually give me 3 orders of same demand next year. Every order, totally, I
can get the kickback about $200,000 from them.
I am the only manager of my company in China. The top managers of my company know the
information of China’s market only from me. If I want to, I could convince my boss with fake
data on the Chinese market and tell them the market price of China for this product is $700. If I
did this, the top manager would surely agree with Lin’s expected price.
If I take this order in the low price, I can get the kickback from the RT-Marts, my team can keep
the No.1 performance, my company will support me to get the H1B visa and I may be promoted
to the sales director as the rewards. To do this though, I have to lie to my top managers which
is violation of professional ethics. It would also damage the company’s interests because we
may have to decrease the price to other customers, that will decrease company’s profit. Even
worse, that may result in vicious competition. On the contrary, if I do not accept Lin’s deal, I
may lose the biggest customer, my team may not keep the top performance, and I may need to
say goodbye to my H1B visa and all of my bonus.
I am in an ethical dilemma situation, what should I do?
19 of 26
Case R
Many ethical situations arise in the aviation industry. With so much competition going on in the
industry, ethical situations are bound to arise. Airline mechanics have a responsibility like no
other. They are licensed and qualified for carrying out aircraft maintenance. They inspect and
perform and or supervise maintenance preventive and alteration aircraft and aircraft systems.
Two of the many issues when dealing with aircraft mechanics are rushed jobs and when the
maintenance manual (log book) is filled out incorrectly.
May of 2018 there was a WayUp Airline flight from Raleigh Durham, NC to Tampa, FL. A WayUp
Airline mechanic named Rickey Spencer was performing a routine aircraft maintenance
checkup. This particular day Spencer was one out of three mechanics staffed. Spencer was on
his tenth hour on his eight-hour shift, short staffed, no lunch break, hungry, gate calls back to
back, overworked and tired. He was in charge of covering every terminal and every call from
the captains at the departure gates. He completed his routine checkup, filled out the
maintenance manual (log book), gave the captain the thumbs up for a working aircraft, and the
flight departed to its destination.
It wasn’t until he started working on his next aircraft when he realized he was missing his
wrench. After searching high and low, and tracing his steps, it hit him, the wrench was in the
one of the compartments under the wing of the aircraft. This is a violation of the Federal
aviation administration (FAA) regulations. Leaving a tool in the aircraft compartments means
two things, 1. That he signed off in the log book that everything was clear and 2. Potential
danger to the 128 total souls on the aircraft. The wrench could move while inflight causing
damage to the aircraft. Spencer’s mind was running a mile a minute. He wasn’t sure if he should
say something to his manager or let it play out. Spencer has been a mechanic for 15 years, with
no violations on his record. After thinking about it, he decided to let it play out.
A month or so later, Ted Spark, another Raleigh mechanic and one of Spencer’s
colleagues, found the wrench during another routine check up and recognized it as Spencer’s.
What should Spark do?
20 of 26
Case S
My real estate company is currently dealing with an issue concerning four individuals failing to
pay rent in a timely manner. The lease stated that rent was due the first day of every month for
twelve months starting on June 1, 2018. The individuals paid the deposit on the property
promptly, but only two individuals paid a portion of the rent. On August 10, 2018 one individual
paid rent for June and July and the other individual paid rent for June. I sent reminders via text
message on a few occasions, but most of the time my messages were ignored. Also, I sent them
many messages about turning on the electricity for the property and these messages were
ignored until the middle of August.
These four individuals are college students who needed housing by late August and they told
me they will pay rent in cash the last Friday before school started. I agreed to the arrangement
and I told them I will tolerate late payments from that point forward. On August 24, 2018 the
individuals went to my property to pay rent, but I was not present at the property. I was
working in my office and they began to bombard me with calls concerning the state of the
house that I ultimately ignored. They stated that the house smelled like mold, the walls were
not repainted and the house was unlivable. I said via text that we will discuss actions regarding
cleaning the house after they paid rent. The individuals refused to pay rent and they are
currently asking for their deposit and rent money back. I believe they are planning to take legal
action.
21 of 26
Case T
Paragon Trading Company (PTC), the leading Merchandize Firm owned by foreigners in the
Republic of Letitia was flagged for allegedly selling expired products to the public from its’
storage sites. Based upon an impromptu assessment conducted by the National Institute of
Commerce (NIC), PTC was reported to have assembled outdated goods for public consumption
by reframing the date of expiration of high consumption commodities and recirculating them
for profit maximization at the expense of the health of the citizens of Letitia.
This assessment information created major concerns and skepticisms about PTC services across
the nation and other similar business institutions. Prior to this findings, PTC was considered one
of the safer places to purchase commodities especially perishable goods given the influx and
sale of similar commodities from cross borders’ trade by Petty Traders and other informal
businesses. Many citizens including low income earners traded higher costs for higher quality
by transacting with PTC in expectation of acquiring better goods.
Given the situation, citizens became furious, confused, and apprehensive about where and
what to buy contemplating on the health implication of this kind of illusive behavior. They
began to speculate that the massive diagnoses of Typhoid and other sicknesses were as the
result of such service.
The nation became divided with regulatory bodies responsible for the inspection of these
commodities before storage, reassuring the public about the efficacy of their systems and
controls, while the National Health Center (NHC) and other Human Rights Institutions
demanded the conduct of thorough investigation of the matter and further inspection of all
other firms. This situation instilled serious pandemonium amongst the citizens about their
health, and they protested trying to get the government to ban PTC.
22 of 26
Case U
Participating in the financial industry, advisors are expected to follow a certain set of ethical
and legal rules and constraints set out by self-regulatory bodies in an attempt to protect clients
from potential fraudulent and unethical business practices. Such practices include: participating
in client accounts (meaning you share in the profit/loss of an account), guaranteeing
performance or against loss (capital/equity markets carry an innate risk to the principal of an
investment) and altering a prospectus, in any way, to highlight potential advantages.
Office Environment
You work in a highly competitive network office, where your office’s managing partner
encourages performance with hefty financial rewards. Your co-workers are all having a
phenomenal year, you’ve been slacking a little (you expect if you don’t pick up your
performance soon, your head may be on the chopping blocks) and your personal financial
situation is starting to look a little dire as well. Your office consists of approximately 40 advisors
and their staff. You have been notified that the SEC will do a random in-depth audit of an
advisor in your office (business and personal finances alike) – meaning you have a 1/40 or 2.5%
chance of being selected.
Scenario
You are a financial advisor at a large firm seeing a new client who wants to talk about
retirement/legacy planning. The client is in his early sixties, has accumulated a great deal of
money throughout his working years as a c-suite level executive at a large firm. He has opened
a trust and wants to invest $100M in an account, of which he wants to make you the advisor;
meaning you will continue to advise and manage the account long after his retirement and
passing. He mentions that he is particularly concerned with principal protection and the
longevity of his money – he is leaving it to a charitable organization with little money and
financial capabilities.
The client mentions that he has seen other advisors who has showed him safe portfolios with
an estimated growth rate of 8%. You have prospectuses with similar return rates, and you want
to emphasize that your return rates can compete with the other advisors; however, you charge
a 0.6% fee of total assets, while your competitors charge 1.2%.
The client also mentions that he really like what you’re telling him and will go with you if you
can guarantee principal protection and a 9% return over the first 3 years and 6% thereafter. The
client mentions that if you can guarantee the afore-mentioned, he will personally ensure you
receive a bag of for 1.2% of the total worth of the portfolio at the end of each year, on
December 1st. If you can’t guarantee however, he will likely go with a competitor.
23 of 26
Case V
Ristorante Capo is a quaint Italian fine dining establishment located near King of Prussia,
Pennsylvania, and has been in business for almost three decades. As an apparent directly
subsequent result, Ristorante Capo features a staff that is relatively long-tenured for such an
industry and thus, offers the two co-owners a great deal of opportunity to allow the business to
essentially operate itself on a daily basis without their physical presence in the establishment.
The duo of proprietors had trusted Capo’s serving staff, of which I was an employee at the time,
with taking care of the money for the evening for over a decade I had been told by one of the
more senior staff members, in terms of going through the processes of splitting up the tips,
paying the kitchen staff on Saturday nights, then ultimately seeing to it that the one of the
business owners received the remaining capital after the shift had concluded. Capo does not
have a computer system for tracking orders and all transactions are written out by the serving
staff by way of pen and paper tickets, though there is a credit card machine in response to
functionality and efficiency purposes, considering the relatively high menu prices.
One Saturday leading up towards Christmas, I was serving with James and the reservation book
confirmed that it would be a busy shift. As per usual, the owners were not in the restaurant and
the only other person on the dining room floor was a younger bus person that had no
interaction with customer’s checks or means of payment. As James was going through the
tickets at the end of the evening, before yielding the tip out to the service staff, the building
had entirely emptied, and it came to my attention that he was throwing out certain table’s
tickets, more specifically those that had paid in cash. I quickly connected the figurative dots
that his actions would offer us considerably more cash to pocket and take home for only about
five tough hours of work, not to mention, how could the owner’s ever possibly find out?
24 of 26
Case W
The company I worked for in during my summer vacations was a customer-oriented small
business. Its owners were talented bakers who opened their bakery 20 years ago. Today, the
business is thriving, and they have many loyal clients in the town. Many people knows the
owners personally, and it is believed that they provide the best products at reasonable prices. I
worked at one of their two bakeries in downtown. My job was to sell the cakes and answer
phone calls. During the day, there were approximately 15-20 new orders, so my job was to
write down every client’s name and address, their wishes, and even allergies. My goal was to
ensure that the cakes produced at the bakery meet the requirements of the most demanding
customers.
After the brief training that took several days, I was allowed to take orders by myself. I did my
job well and believed that the clients were satisfied. Some of them even left positive comments
on the bakery’s Facebook page, emphasizing the high quality of service. However, everything
changed one day after I took order from Mrs. X. The lady ordered a birthday cake and told me
that she was allergic to peanuts. I wrote it down and handed the order to the person who was
supposed to make this cake. The order was delivered the next day, but Mrs. X called the owner
in the evening saying that she had a serious allergic reaction and that the cake probably
contained some peanuts.
When I came to work the next day, the owner was there, and he wanted to talk to me about
what happened to Mrs. X. I told him that I was informed about the client’s condition and
communicated this to the cook. I suggested to check the note I handed to her. However, the
cook argued that she threw the note away when the cake was ready and claimed that it did not
contain any information about the client’s allergy. She stressed that she had much experience
as she had worked at the bakery for almost five years and noted that it was probably my
mistake. It was apparently her word against mine. I knew that the owner would probably
support her since they knew each other for years. However, I could not even imagine that his
reaction would be so unexpected.
25 of 26
Case X
The Kimberly Company is a production firm that expects its managers at all levels to maintain a
high degree of ethical standards. These expectations are laid out in the employee handbook
with the intent of providing worthy examples for junior employees to emulate, and removing
the possibility for perceived conflicts of interests to arise.
Senior management became aware of a married department supervisor maintaining an affair
with a junior employee in a section of a client company with which Kimberly conducts regular
business. The department supervisor was removed from position, as per the employee
handbook, however no replacement was named and the section was forced to operate for a
time without a supervisor.
The implications of this were especially dire since many employees in the section had annual
reviews due shortly that required a supervisor’s comments and signature. If the reviews were
not submitted into the HR system, or were submitted without comments and signature, they
would be rejected and the employee’s career timeline would be adversely affected. Employees
struggled trying to keep their careers on track without resorting to manipulating the HR system.
26 of 26
Case Y
The company in this case is a construction company that specializes in technology integration
for commercial clients, including many fortune 500 companies. The construction firm for this
case will be called XY Construction. It is typical that many jobs involve the disposal of non-state
of the art, which is to say 4 or 5 year old, technology equipment such as computers and
computer monitors, into dumpsters. The policy of the company is that no one may pick out of
the dumpsters any of the computers and anyone in violation will be terminated when it is
confirmed that there was theft. Additionally some clients require in their contracts that same
policy.
During a birthday party for the one year old daughter of one of XY’s site supervisors, many
members of XY’s management attended (which is not unusual given the culture of the
company). One of XY’s executives noticed a computer in the site supervisor’s house which had
lettering on the back which had the initials of a recent client, of which the supervisor worked at.
The next work day the supervisor was called into the executive’s office. Where they discussed
what the executive had noticed at the birthday party. The supervisor explained that the writing
on the back of the computer was actually the initials of his brother in law, which happened to
be the same as the recent client. The client did not specify in the contract that their equipment
should exclusively be disposed of. Also, the supervisor who has been with XY since its founding
17 years ago has been documented to be misleading/lying in his second year working for XY.
Other than that the supervisor has been a model employee who is well respected and has been
promoted multiple times.
XY’s executive is skeptical of his supervisor’s explanation but is reluctant to ask for the client’s
assistance for investigating due to the fact that he does not want to jeopardize the relationship.
This is because the initial work has led to further work, which has also become more profitable.
What should the executive do?

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