Ethical dilemmas in chapters 1-7 analysis môn Business ethics | Đại học kinh tế Quốc dân

lOMoAR cPSD| 58511332
Chapter 1: The Importance of Business Ethics I. An Ethical Dilemma
Question 1. Identify the issues Sophie has to resolve. ❖ C1 (Studocu)
She has to resolve and make a decision as to whether to continue working in the organization
as a sales agent despite the difficulties anticipated to be faced, as explained by Emma. She also has
to resolve the issue of whether to approach her seniors, accountants, and supervisor to stress the
challenges sales agents are facing in their activities that extend to deceit in the financial reports of
sales agents. Finally, Sophie has to resolve the issue of whether to report correctly, her expenses report
or follow the idea given by Emma of including some expenses on others due to fewer categories in
forms by tipping a specific percentage and making the additions to the overall expense report which
is against the company policy. ❖ C2
Sophie faces an ethical dilemma. She has been instructed in her training to fill out expense
vouchers accurately. However, her mentor, Emma, is advising her to engage in dishonest conduct by
padding her expense reports to cover tips and other expenses that are not explicitly listed on the
company's voucher form. Sophie must decide whether to follow Emma's advice and go against
company policy or to fill out the expense report honestly, as instructed in her training.
Question 2. Discuss the alternative for Sophie. ❖ C1 (Studocu)
There are several alternatives for Sophie that pose an ethical dilemma. Sophie has the
alternative to follow Emma’s idea, which is against the company policy, by making wrong tips that
have to be added to the overall expense reports, and thus she has to use cabs and not the cheaper
means of transport (Uber and Lyft). Besides, this alternative will be in alignment with all other sales
agents' practices. The second alternative is to try and air the issue of forms having fewer categories
to the subordinates; the accountants, the vice president, and the supervisor in an attempt to convince
them of a change that would see the addition of more categories to accommodate all the tips they give
while on duty. However, this opinion is similarly hard since she will be risking losing her job, just as
Emma’s attempts were met with threats. These alternatives are greatly influenced by situational factors. ❖ C2 lOMoAR cPSD| 58511332
Sophie has several alternatives:
● Follow Emma's advice. This would involve padding her expense report to cover tips and
other expenses not listed on the form. This would align her with the other salespeople and
likely gain their approval. However, it would go against company policy and her training, and
it could be considered unethical and dishonest.
● Fill out the expense report honestly. This would mean only claiming expenses that fit the
categories on the form. This would adhere to company policy and her training, but it could
lead to conflict with Emma and the other salespeople. It could also put Sophie at a
disadvantage if other salespeople are padding their reports and she is not.
● Report the issue to a higher authority. Sophie could report the issue to someone in the
accounting department or another manager. This could potentially lead to changes in the
expense voucher form or policy. However, it could also create a hostile work environment for
Sophie, as Emma mentioned that someone who reported similar behavior in the past was fired or quit.
● Discuss the issue with Emma or a trusted colleague. Sophie could try to discuss the issue
with Emma or another trusted colleague to get their perspective and advice. This could help
her understand the potential consequences of her actions and make a more informed decision.
Question 3. What should Sophie do if company policy appears to conflict with the firm's corporate culture?
If company policy conflicts with the firm's corporate culture, Sophie should try to:
● Understand the reasons behind the conflict. Why is the company policy not being
followed? Are there valid reasons why salespeople are padding their expense reports?
● Gather more information. Talk to other trusted colleagues, mentors, or managers to get their perspective on the situation.
● Consider the potential consequences of her actions. What are the risks and benefits of
following company policy versus following the corporate culture?
● Make a decision based on her values and the best interests of the company. Sophie should
try to make a decision that is ethical, legal, and in line with the company's overall goals.
● Document everything. Keep records of her conversations, decisions, and any evidence related to the situation. II. Closing Case lOMoAR cPSD| 58511332
Question 1. Why should Lael get involved in reporting if she has not experienced any of the
allegations the other employees are making? ❖ C1 (Studocu)
Lael should get involved in this situation as she was the manager training program and
responsible for scheduling employees. And since she was responsible for scheduling some of the
female employees for the night shift wherein the incidents happened which could be constituted as
sexual harassment, she has a moral and ethical duty to report these incidents to the authorities. Also,
it would be wise for her to report as the rate of turnover was quite high, and it may also be construed
that ineffective scheduling by Lael was the reason for the high turnover if the real reason is not
investigated and revealed by Lae. ❖ C2
Even though Lael hasn't personally experienced the harassment, she has an ethical and, in
some cases legal, obligation to get involved for several reasons:
● Witness to potential harm: Lael is aware of the alleged harassment, making her a witness.
Ignoring it could be seen as condoning the behavior and contributing to a hostile work environment.
● Responsibility to protect colleagues: Most organizations have policies requiring employees
to report known instances of harassment or discrimination. She has a responsibility to help
protect her colleagues and ensure a safe and respectful workplace.
● Upholding company values: By reporting, Lael supports the company's ethical standards
and commitment to providing a harassment-free workplace.
● Preventing escalation: Unreported harassment can escalate, leading to more severe harm for
the victims and greater legal liability for the company.
● Legal implications: Depending on the jurisdiction and specific circumstances, Lael could
face legal repercussions for failing to report known illegal activity, such as harassment.
Question 2. What are some of the characteristics of Best East’s ethical culture that would create the
current dilemma for Lael? ❖ C1 (Studocu)
A clear policy for voicing concerns over harassment in the workplace, encouragement to speak
out against the management and franchise owners in case of any misconduct, there was no ethics lOMoAR cPSD| 58511332
counselor or hotline to report the incidents, and Best East may also be more interested in preserving
its reputation rather than taking strict action against franchises. ❖ C2
The case highlights several aspects of Best East's ethical culture that contribute to Lael's dilemma:
● Fear of retaliation: The fact that other employees are afraid to report suggests a culture where
speaking up is discouraged or punished. This lack of trust in the reporting system creates a
barrier to addressing ethical concerns.
● Tolerance of unethical behavior: The existence of widespread rumors and allegations of
harassment indicates that such behavior might be tolerated or even accepted within the company culture.
● Lack of accountability: If the manager is indeed engaging in harassment and no action has
been taken, it suggests a lack of accountability for unethical behavior, especially among those in positions of power.
● Poor communication: The fact that Lael has to rely on rumors and has no official information
about the situation indicates a lack of transparency and open communication within the company.
Question 3. What should Lael do to resolve her concerns? ❖ C1 (Studocu)
Lael should speak to her superiors in a confidential manner and appraise him or her about the
scenario. Then she should ask for advice for further course of action. She should also consult an
attorney to seek a legal view on how to approach the situation along with gauging the kind of liability
that she or her employer Best East would face if she takes any further action. ❖ C2
Lael should take the following steps:
● Review company policy: Familiarize herself with Best East's policies on harassment,
discrimination, and reporting procedures. lOMoAR cPSD| 58511332
● Document everything: Keep detailed records of what she has witnessed, the rumors she has
heard, and any other relevant information. This documentation will be important if she decides to report.
● Consider confidential reporting: If she is uncomfortable reporting directly to her supervisor
or HR department, she should explore confidential reporting channels, such as a hotline or an ombudsman.
● Seek external advice: If she is unsure about how to proceed, she can consult with an external
expert, such as an attorney or an ethics consultant.
● Report the issue: Lael should report the allegations to the appropriate authority within Best
East, following the company's reporting procedures.
It's important for Lael to remember that she has a right to a safe and respectful workplace, and
she should not be afraid to speak up about potential misconduct. By reporting the issue, she can help
protect her colleagues and contribute to a more ethical workplace culture.
Chapter 2: Stakeholder Relationships, Social Responsibility, and Corporate Governance
Question 1. If tracking employees through technology is not illegal, why should Megan be concerned
if she is not involved in any misconduct?
Because it raises ethical issues related to privacy and confidentiality. Monitoring employees'
personal activities, such as visiting a hospital or sharing confidential information, may infringe upon
their right to privacy. Even if legal, such practices can still be morally questionable.
Question 2. At this point, what are Megan’s alternatives to resolve her current dilemma about her
involvement and knowledge about GAC’s tracking employees? -
Megan could express her concerns to her supervisor, Debbie, seeking clarification on the
ethical implications of the employee tracking activities. -
She might consult with HR colleagues or legal experts within the organization to gain a better
understanding of the legal and ethical aspects of the situation. -
Megan could propose ethical guidelines or policies that ensure a balance between monitoring
for legitimate reasons (such as preventing confidential information leaks) and respecting employees' privacy rights. -
If Megan finds the practices to be clearly unethical or illegal, she may consider escalating the
issue to higher management or external authorities.
Question 3. Who should have a stake or an interest in how GAC tracks and monitors its employees? lOMoAR cPSD| 58511332 -
Employees: Have a stake in their privacy and the right to conduct personal activities without unwarranted surveillance. -
Megan: Has a stake in maintaining her ethical integrity and deciding whether to comply with
or resist the potentially unethical practices. -
Debbie and GAC Management: Have a stake in maintaining organizational security,
preventing information leaks, and ensuring compliance with legal and ethical standards. -
Legal Experts and HR Colleagues: Have a stake in providing guidance on the ethical and legal aspects of employee tracking. -
Competitors and External Entities: May have a stake in understanding how GAC monitors its
employees to gain a competitive advantage.
Chapter 3: Emerging Business Ethics Issues I. An ethical dilemma
Question 1: Discuss how this conflict of interest situation affects other salespeople, the
organizational culture, and other stakeholders Cách 1 (tham khảo Studocu)
The conflict of interest scenario results in other salespeople getting demotivated. It is unfair
and the corporate environment is impaired as it contributes to department-wide demotivation and lack
of confidence in the leadership that can translate to high attrition levels and inability to attract the best
talent possible. The use of policy seems to be omnipresent in today's economic climate, and wage
planning is not unaffected by strategizing resulting in all salaries of an organization's workers being
complex and thus vulnerable to constant monitoring and command. Compensation is a major variable
expense for any enterprise, so it should be part of company policy to follow a viable strategy to ensure
that the output delivered is commensurate with the input required. Cách 2 (AI)
The conflict of interest between Deon and Greg has significant implications for various
stakeholders. The other salespeople are directly affected by the unfair distribution of clients, leading
to decreased performance, lower income, and diminished morale. This favoritism erodes trust within
the organization, negatively impacts the company's culture, and can ultimately harm its reputation.
Moreover, shareholders may suffer due to decreased sales and potential legal consequences, while
customers may experience subpar service from demotivated salespeople.
Question 2: Describe the decision that Jayla must make. What are the potential ramifications of her choices? lOMoAR cPSD| 58511332
Jayla's decision is founded on ethical and moral principles. With the severe and unequal
impact on the other members of the sales force, she will dismiss the information and knowledge of
the racism that exists within the organization. This could result in a lifelong sense of shame for having
the guts to avoid another's wrongdoing to save her job. The other option is to bring the discriminatory
behavior to the attention of senior management, which may result in her losing her job, but not
necessarily, because management will be pleased with her for having the courage to announce the
presence of a significant discriminatory practice within the company that harms the organization's
future performance and prospects.
Question 3: Are there legal ramifications to this kind of behavior? If so, what are the potential consequences? Cách 1 (Tham khảo Studocu)
Compensation plans must be customized to any entity and cannot be extended across the board
to any enterprise, provided that there is a wide variation in business priorities, the markets in which a
company operates, and the form of employees it hires. The price of production is greatly affected by
different rules and laws that allow an entity to work within. Compensation disparities are permitted
if they are based on merit, gender, quantity or quality of production, or reasons other than those
mentioned in the Act. This conduct is unfair and the other sales staff will take legal action against the company. Cách 2 (AI)
While the specific legal ramifications depend on local laws and regulations, the favoritism
exhibited in this scenario could potentially lead to legal issues. If the favoritism is based on protected
characteristics, it could be considered discriminatory. Additionally, if the company's financial records
are manipulated to benefit certain individuals, it could be considered fraudulent.
Moreover, violating the company's policies and procedures could lead to legal action. II. Closing Case
Question 1: Describe the ethical issues that David is encountering
In this scenario, David is encountering several ethical issues. The first one is lying. Although
David himself is not lying in this case, he is writing the lie. David’s job is to write an advertisement
that will sell bacon, but the problem is the actress that they are using to endorse the bacon, Gloria
Kunies, in the advertisement is a vegetarian. How can a vegetarian honestly advertise a meat product?
This can also be considered false advertising on top of lying. By having a celebrity endorse a product
that they don’t use, YOLO is not being 100% truthful with their customers. The advertisement will
probably consist of Gloria Kunies saying how good the bacon tastes and how much she likes it, but lOMoAR cPSD| 58511332
in reality, she doesn’t even eat it anymore. Not only did they choose the wrong person to advertise
for the company, but David was also involved in omission lying. This is when someone leaves out
certain details about a product that could be negative or harmful. In this case, they are leaving out the
fact that bacon is unhealthy, and according to the case, “a heart attack waiting to happen.” So, in this
case, lying, omission, and false advertising are all ethical issues that David encountered.
Question 2: Does this situation in any way violate the concepts of fairness, honesty, and integrity?
Yes, this situation definitely violates fairness, honesty, and integrity. Because YOLO is not
treating its customers fairly, it is against fairness. Customers are not given a proper impression of the
product when a celebrity endorses bacon that they do not consume. This demonstrates how YOLO
lacked integrity and was dishonest. As previously stated, there were multiple instances of deception
regarding the product's healthfulness as well as the actress's endorsement of a bacon product that she
doesn't eat. Integrity is essentially acting morally in general. Since YOLO opted to lie to their clients
rather than behave with justice or honesty, they were unethical and, as a result, lacked integrity.
Question 3: If the advertisement does not violate any laws, then why should Daniel be concerned?
What are the possible consequences of the advertisement?
Even if there wasn’t any illegal activity happening in this case, David should still be concerned
if he has strong morals. YOLO is dishonestly advertising their product and not being truthful to its
customers. If David has values and morals about honesty, he should be concerned because they are
being violated. The possible consequences of this advertisement are loss of reputation to the company
and David considering he wrote the advertisement. If the public were to find out that the actress
endorsing the bacon is a vegetarian, it would hurt the reputation of the company, and also David’s
reputation because he was in charge of the advertisement. Another possible consequence is the
healthiness of the customers. If the advertisement doesn’t inform consumers about the health risks
associated with eating bacon, they might not know how bad it is for them and that it could be harmful to their health.
Chapter 4: The Institutionalization of Business Ethics 1. AN ETHICAL DILEMMA
Question 1: How should Randy deal with the dilemma he is facing?
Randy must navigate a challenging ethical situation that tests his integrity and professional
responsibility. Firstly, Randy must understand the Legal and Ethical Implications. He should reflect
on his training and research the potential legal consequences of delivering expired products under
falsified labels. Selling or distributing expired products, even with altered labels, may violate laws lOMoAR cPSD| 58511332
and regulations governing pharmaceutical and medical supplies. Additionally, Randy could
communicate his concerns. He should have an honest conversation with Cheryl. He should explain
why he is uncomfortable with the directive, citing the potential risks to patient safety, hospital liability,
and Meeker’s reputation. By presenting a logical and principled argument, he may persuade Cheryl to reconsider the approach.
Question 2: What are the implications of comparing Meeker’s practices with those of its competitors?
"Common Practice" Does Not Equal Ethical Behavior: Even if competitors alter expiration
labels, this does not make it ethically or legally acceptable. Justifying unethical actions by pointing
to others' behavior creates a "race to the bottom" where standards are continuously degraded.
Moreover, if such practices are exposed, both Meeker and its competitors could face significant
reputational harm. Hospitals and clients would likely lose trust in their ability to provide safe and
effective products. Regulatory bodies, such as the FDA or equivalent organizations, may investigate
Meeker and its competitors if such unethical practices are reported. This could result in fines,
sanctions, or even criminal charges.
Question 3: What kind of responsibility does Randy have for the different stakeholders involved in
this situation? How does his responsibility to Meeker differ from his responsibility to the hospitals?
Responsibility to hospitals:
Firstly, he must be responsible to the hospitals, ensuring patient safety. Hospitals rely on
accurate information about medical supplies to ensure patient well-being. By delivering products with
falsified expiration dates, Randy would jeopardize patient safety, and hospital operations, and
potentially cause harm. In addition, maintaining Trust in many hospitals is really significant factor.
Randy must honor the trust hospitals place in suppliers like Meeker. Compromising this trust could
damage the hospital’s reputation if patients are harmed by expired products. Last but not least,
Randy’s duty to follow the law and professional ethical standards takes precedence over company
directives when these directives are unethical or illegal.
Responsibility to Meeker:
As an employee, Randy has a responsibility to contribute to Meeker’s success. However, this
does not mean blindly following unethical instructions. Instead, he should advocate for ethical
business practices that safeguard the company’s long-term reputation and compliance. Moreover,
Randy has a duty to report unethical or illegal practices within Meeker. This not only protects the
company but also aligns with his personal and professional integrity.
Balancing Conflicting Responsibilities: lOMoAR cPSD| 58511332
- Prioritizing Stakeholders: Randy’s primary responsibility is to the hospitals and, indirectly,
the patients who depend on safe and effective medical supplies. His secondary responsibility
is to Meeker, but only insofar as it aligns with ethical and legal standards.
- Refusing to Participate in Harm: Randy must not participate in any action that could harm
patients or compromise the hospital’s ability to deliver care, even if this puts his employment at risk.
- Long-Term Perspective: By addressing this issue transparently and advocating for ethical
practices, Randy serves Meeker’s long-term interests more effectively than by complying with
Cheryl’s unethical directive.
2. RESOLVING ETHICAL BUSINESS CHALLENGES
Question 1: Describe the stakeholders involved in this ethical dilemma. What stake do they have in the situation?
Bill and Ahmed have more assessed to the library information and system to download pirated
music, movies, and books. One of them wanted to share the information illegally whereas the other
one did not want to be a partner crime. This creates an ethical dilemma, which may lead both to face
the ethical implications and be barred from the college or expelled from the job. At the same time,
other stakeholders are also influenced by unethical activities. Hence, it is important for them to keep
the safeguards against unethical actions and funds involved. Ahmed is aware of Bill's unethical and
illegal actions and he knows that he risks being implicated if he stays silent but could face personal
repercussions if he speaks up. Bill is the one engaging in illegal and unethical behavior. If caught, he
could face expulsion, legal action, or damage to his reputation.
Question 2: Are Bill’s actions an ethical issue, a legal issue, or both? Explain your reasoning
Bill’s activities were both ethically and legally incorrect.
- Ethical Issue: To be dishonest with the available resources from the library and download as
well as distribute them to make money, Bill shows unethical action. He also tries to involve
Ahmed by giving him money and creating a sense of complicity.
- Legal Issue: Involving others in the wrong action shows legal issues by copying details
without permission constitutes copyright infringement, which is a violation of the law. Bill
could face legal consequences if caught.
Question 3: What are some of the risks Ahmed faces if he becomes a whistleblower? What are the
risks if he remains silent? lOMoAR cPSD| 58511332
If Ahmed becomes a Whistleblower then still he must pay higher fines and get terminated
from the job due to suppression of the evidence and this leads to illegal delinquency. The legal actions
are dependent on the amount of information Ahmed was withholding. His reputation could also suffer
if people misunderstand his role in the situation. In case Ahmed shares the information with the
higher-ups then based on the Bill’s expulsion, the others will be also investigated. Ahmed may also
be considered as one of the offenders being silent on the wrong act by Bill. Ahmed might feel guilty
or morally conflicted for not acting against unethical behavior. In case this entire act was found in the
future then also it has legal implications.
Chapter 5: Ethical Decision Making I. Opening case
Question 1: Describe the nature of the organizational culture in the restaurant. What kind of
opportunities are there for unethical behaviour to occur? Are there any opportunities for ethical behavior?
The nature of the organizational culture in the restaurant is unprofessional as their employees
disrespect the management and have casual work behavior whereby they make fun of their bosses
and treat the work area like a playground. Besides that, the employees also does not implement and
follow sanitary and healthy practices as they felt that in a fast food restaurant, the primary concern is
the mean time of services while other parameters like hygiene and the quality of food are secondary.
Due to the lack of supervision and poor management, it create an opportunities for those unethical
behaviour to occur and resulted anunsanitry practice within the restaurant. In which, they focus on
managing time quickly rather than serving better quality of the food. Hence, a stricter management
should be implemented from the top to bottom management to handle every aspect of unethical
behaviors that happened in the outlet.
Question 2: What are some of the incentives employees might have to engage in this type of behaviour?
● Financial Gain: The primary incentive is the potential for personal financial gain. By
overcharging customers, employees can earn extra income without putting in additional effort.
● Peer Pressure: If the practice is widespread and normalized among colleagues, employees
might feel pressured to participate to fit in or avoid being seen as a "whistleblower." lOMoAR cPSD| 58511332
● Lack of Supervision: If management oversight is lax, employees might feel emboldened to
engage in unethical behavior, knowing that they are less likely to be caught or held accountable.
● Short-term Thinking: Employees might focus on immediate financial benefits without
considering the long-term consequences for their career, the restaurant's reputation, and their own ethical integrity.
Question 3: If the organizational culture of the restaurant does not change, what are some likely
outcomes and consequences?
● Loss of Customer Trust: Overcharging customers can lead to negative word-of-mouth,
damaged customer relationships, and a decline in customer loyalty.
● Legal Issues: If the practice is discovered, the restaurant could face legal action from
customers or regulatory authorities.
● Employee Morale: A culture of unethical behavior can negatively impact employee morale and job satisfaction.
● Reputational Damage: The restaurant's reputation could suffer, leading to decreased
business and financial losses.
● Ethical Decline: A culture that tolerates unethical behavior can lead to a decline in overall
ethical standards within the organization. II. Closing case
Question 1: Describe the organizational culture at Crude Oil. How does it contribute to the current situation? Cách 1 -
The organizational culture at CrudeOil appears to be toxic, characterized by a harsh and
unpredictable management style under Jim Stone's leadership. -
The focus on achieving results and increasing sales and profits seems to override the
importance of employee well-being and a respectful work environment. -
There is a lack of transparency and open communication, as evidenced by Jim's arbitrary and intimidating behaviors. Cách 2
The organizational culture at CrudeOil portrait unethical practices in which the company only
focus on increasing their sales and willing to hire a manager who would yield an immediate result. lOMoAR cPSD| 58511332
This can clearly be seen through Jim, who despite his good performance in making sales and profit
after just 18 months working with the company, his managing and leadership style wasvery poor. In
which, he was harsh and unpredictable, whereby he shows intimidation to his subordinates and likely
to blame others for any mistakes made even though it was not their fault.As a result of Jim’s behavior,
it caused others to push him away and find solution for the problems by themself instead of seeking
for his guidance. Besides that, Jim also like to bully his subordinates by telling them that their sale
performance is not good enough despite they achieve their sales quota. In addition to that, he also
took credit for Madison’s performance and try tospread bad rumors to others when she able to exceed
her sales’ code. Hence, this show how unhealthy Jim’s management skill as it creates hostile work
environment that make others feltde motivated to work with him.
Question 2. How is CrudeOil violating its core value of treating others with respect? What are some
ways it could reincorporate this core value into its organizational culture? -
CrudeOil is violating its core value of treating others with respect through Jim Stone's
intimidating and demeaning behaviors towards employees. -
The discrepancy between the stated core value and Jim's actions creates a culture of hypocrisy,
eroding trust and creating a hostile work environment. -
Ways to reincorporate the core value:
+ Provide leadership training and development for managers, emphasizing the importance of
respectful communication and fair treatment of employees.
+ Establish clear guidelines on acceptable behavior and consequences for violating respectful conduct.
+ Encourage an open-door policy where employees can report incidents of bullying or harassment without fear of retaliation.
+ Foster a culture that values diversity, inclusion, and collaboration, reinforcing the core value of
respect in all aspects of the organization.
Question 3: If Madison cannot report her problems to her immediate supervisor, what are some
otherways she can handle the situation? Cách 1
Other ways that Madison can do to handle the situation is by seeking advice from atrusted
professional, such as the Human Resource Compliance Officer to verify whether what was done by
Jim to her was inappropriate. If they able to verify it and provide support to her, she will need to learn
about the available channel that she could use to voice up her problem including any related eternal
authority who involved in handling labor’s issues. Furthermore, Madison also could collect evidences lOMoAR cPSD| 58511332
about the Jim’s misbehavior through recording a video whenever he got angry and blame her for
something that was not her fault or ask Peter to be awitness regarding bad rumors that was spread by
Jim. As she could use it when she wants to filea report to the top management. Jim’s behavior is
clearly unethical, but many of these behaviorsare less clear and occur in complex situations. The most
complicated situations often involve employees who witness what is, or appears to be, unethical
behavior and are unsure how torespond, especially if job security is on the line. Cách 2 -
Seek support from HR: Madison can approach the Human Resources department to discuss
her concerns and seek guidance on how to address the situation. -
Document incidents: Keep a record of specific instances of mistreatment, including dates,
times, and details, to provide evidence if needed in the future. -
Build a support network: Connect with colleagues who have faced similar issues and
collectively discuss potential actions or approaches to addressing the problem. -
Anonymous reporting channels: If available, use anonymous reporting mechanisms within
the organization to communicate concerns about Jim's behavior to higher-ups. -
External resources: Explore external resources, such as employment law attorneys or
counseling services, for advice on how to navigate the situation.
Chapter 6: Individual Factors: Moral Philosophies and Values I. Opening case
Question 1. Describe Connor’s moral beliefs and values.
Connor values: employee safety, ethical responsibility, and integrity. He believes in adhering
to safety protocols and ensuring that the workplace is safe for all employees, even if it means
challenging authority or risking his job. He also values honesty and fairness, as seen in his
confrontation with Joe and George regarding skipped safety procedures. Additionally, he feels a moral
obligation to protect his team and considers it unethical to prioritize productivity over worker well- being.
Question 2. In AlumaArc’s reasoning, the benefits of increasing production outweigh the risks of
potential injuries. How could this approach potentially backfire? -
Increased accidents and injuries: Skipping safety protocols could lead to more
workplace accidents, resulting in serious injuries or even fatalities. -
Legal and financial consequences: The company could face lawsuits, regulatory
penalties, and compensation claims from injured workers. lOMoAR cPSD| 58511332 -
Reputation damage: Negative publicity about unsafe working conditions could harm
the company’s reputation, making it harder to attract new employees or retain existing ones. -
Lower employee morale and productivity: Unsafe working conditions and lack of
concern for employee well-being could lead to decreased morale, increased turnover, and
ultimately lower productivity.
Question 3. How should Connor approach this issue? -
Gather evidence: Connor should document instances of unsafe practices, injuries, and
skipped safety protocols to strengthen his argument. -
Engage in dialogue: He should have a respectful and honest conversation with Wendy
Smith, emphasizing the risks to employees and the company. -
Propose solutions: Connor could suggest alternative ways to meet production goals,
such as hiring temporary workers, investing in better equipment, or implementing incentive
programs that prioritize safety alongside productivity. -
Highlight long-term consequences: He should explain how the current approach could
lead to financial losses, legal risks, and reputation damage. -
Seek allies: Connor could gain support from other managers or employees who share
his concerns, creating a unified front. -
Escalate if necessary: If Wendy is unwilling to address the issue, Connor might
consider reporting to higher authorities or external regulators to ensure worker safety, though this would be a last resort. II. Closing case
Question 1: Describe Saul’s ethical dilemma.
Saul's ethical dilemma revolves around discovering fraudulent charges to Medicaid in his
brother's medical practice. On one hand, he wants to protect his brother and their family's reputation,
as well as prevent potential legal consequences. On the other hand, he is aware that Medicaid fraud
is unethical and illegal, and he is obligated to report it to avoid potential personal legal consequences
and protect the integrity of his accounting license.
Question 2: Why would Medicare fraud be a white-collar crime?
Medicare fraud is considered a white-collar crime because it typically involves individuals or
organizations using deceit, manipulation, or false information to obtain financial benefits from
government healthcare programs. White-collar crimes are typically non-violent offenses committed
by professionals or individuals in positions of power or trust, characterized by their financial nature
and intent to deceive for personal gain. lOMoAR cPSD| 58511332
Question 3: How should Saul approach the situation?
Saul should approach the situation by considering the best course of action that aligns with
ethical principles and legal obligations. He should gather all the evidence he has found, including the
fraudulent charges and supporting documents, and document everything meticulously to have a clear
record of the issue. Saul should then consult with a legal professional, such as an attorney or ethics
advisor, to understand the potential consequences and seek guidance on the next steps. Following
their advice, he should report the Medicaid fraud to the appropriate authorities, such as the local
Medicaid office or an anti-fraud hotline. Additionally, Saul should consider discussing the matter with
his brother in a non-confrontational manner, expressing his concerns and encouraging Dr. Smith to
rectify the situation voluntarily.
Chapter 7: Organizational Factors: The Role of Ethical Culture and Relationships I. Opening Case
1. How does the company’s organizational culture appear to conflict with its ethical policies?
The company's organizational culture conflicts with its' ethical policies by not abiding by
them. They stress the importance of integrity and values but none of the upper management upholds
them. There is an abusive manager who often yells at employees in front of other coworkers. Instead
of taking them to the side and discussing their bad performance in private, he ridicules and
embarrasses them in front of their peers, which is very unprofessional. A manager is supposed to be
a leader who encourages, teaches, and respects his employees to make them better workers. When it
is addressed to the HR manager David, he makes excuses for the abusive manager because of his
outstanding job performance in that department. He allows the abuse because of the manager's
excellent work at being the highest performer in the company. Jim was first hired to monitor reports
that came from employees through the company's ethics hotline, he was required to undergo a two-
day training course that informed him about the business' ethical values and policies. The training
session stressed the importance of integrity and confidentiality between employees within the
company. When Sarah Jones, an employee who works in the company sales department at KR
Electronics, put a call to the ethics hotline to report worker dishonesty, she provided Jim with her
name. She specifically asked Jim to ensure her sales manager, Rick Martin, did not find out about her
action. Two weeks following their discussion, Jim found out that Sarah had been fired and that Rick
had been notified about her calling the ethics hotline. Jim confronted David, the human resources
manager, and explained to him that this situation was a huge violation of the company's confidentiality
code. There is a likely chance that David is responsible for telling Rick about Sarah's call considering lOMoAR cPSD| 58511332
Jim was obligated to tell his manager, and the two higher-ups are close friends who have lunch together frequently.
2. What are the options for Sarah if this was retaliation?
If Sarah’s dismissal was an act of retaliation, she has several options to address the situation.
First, she could file a formal complaint with the HR department, referencing the company's
confidentiality policy and whistleblower protections. She may also seek legal counsel to determine
whether her termination violates whistleblower laws and explore potential legal remedies.
Additionally, Sarah could report the situation to external regulatory authorities to ensure her concerns
are reviewed impartially and highlight systemic issues in the company’s handling of ethical
violations. These steps would help Sarah assert her rights and address the larger cultural issues within the organization.
3. What should Jim do next?
Jim should take a proactive and methodical approach to addressing the ethical concerns raised
by Sarah’s case. He should document all interactions and relevant details regarding the retaliation,
ensuring he has evidence to support his claims. Jim should then escalate the matter to the company’s
ethics committee or senior HR leadership, emphasizing the importance of investigating the situation
transparently and fairly. Additionally, he could advocate for stronger whistleblower protections and
enhanced training for managers to align the company’s practices with its stated ethical values. By
addressing these issues, Jim can contribute to building a more ethical and accountable organizational culture. II. Ending Case
Question 1: Describe the organizational structure of ABCO Corporation.
ABCO Corporation appears to have a centralized organizational structure. This is evident
from the emphasis on authority and decision-making being concentrated at higher levels within the
hierarchy. Promotions and opportunities within the company seem to depend heavily on relationships
with immediate supervisors rather than on merit, indicating a top-down approach to decision-making.
The arrival of Britney, the new division manager, further highlights the centralized nature of the
organization, as she exerts significant authority in setting new standards and demanding compliance
from her team. Additionally, the organizational culture described suggests that supervisors wield
considerable influence over employees' careers, reinforcing the notion of centralized control. This
structure limits the autonomy of lower-level employees and aligns decision-making power with a
select group of leaders within the company. lOMoAR cPSD| 58511332
Question 2: Which type of leadership power is Britney using? Do you feel it is effective in this situation?
Britney is using a combination of legitimate and coercive power in her approach to addressing
the ethical concerns within her division. Her authority as the new manager gives her the legitimacy
to demand accountability, and she uses her position to pressure Candace into providing the names of
individuals involved in unethical practices. While Britney's actions demonstrate her commitment to
ethical behavior, her forceful and confrontational approach may not be entirely effective. It risks
alienating employees like Candace, discouraging open communication, and potentially perpetuating
a culture of fear rather than fostering collaboration and transparency.
Question 3: Does Candace have any other alternatives than the two that she is considering?
The only other alternative I can think of to this solution is to find another job. If I were her, I
would not want anything to do with that company. It sounds like there are some very corrupt managers
and executives at ABCO, and I would not want to be a part of that. Candace feels uncomfortable
working there, so if she were to find a new job, she would not have to deal with all the problems that
are going on at ABCO. Overall, I think this is the best option anyway. Both the alternatives that she
is considering have serious consequences either way, and I think finding work with a new company
would be more beneficial to her in the long run.
Chapter 11: Ethical Leadership
Question 1: Describe the deficiencies in ethical leadership at Stacy’s firm.
Ethical leadership creates an ethical culture. Top managers provide a blueprint for a firm’s
corporate culture. Ethical leadership is not simply allowing employees to follow their own moral
codes, it is about helping to implement and reinforce shared ethical values to promote ethical culture;
also assume responsibility to model ethical conduct for employees. Ethical leaders ensure company
goals are met in an ethical manner. At Stacy’s firm, there are deficiencies in ethical leadership,
especially when they do not follow the Seven Habits of Strong Ethical Leaders.
● Do not consider all stakeholders’ interest:
○ Enzo forced Stacy to lie to the candidate about her feelings and experience in the
company. This is an unethical act which can give false expectations of the candidate
to the firm, which will later affect their productivity if given the job. Their
performance will somehow affect the company’s result, making the situation worse
given that there are rumors about DCH selling. lOMoAR cPSD| 58511332
○ The company ignores employees’ complaints after the psychologist interview.
● Do not have a passion to do right:
○ Forcing Stacy to lie also affects Stacy’s perspective about the company. As mentioned
above, Stacy has already had problems with DCH and Enzo. However, Enzo did not
give Stacy a chance to express her feelings, which is one of her rights. As a result, the
atmosphere within the company will be worse and make the employees
uncomfortable. As a boss, Enzo should have listened to Stacy’s opinions.
○ Enzo did not welcome Stacy’s opinions when she approached him, even tried to provoke
Stacy to fight against him. This is not an appropriate behavior of a boss.
○ Enzo also usually critizes Stacy in public and has no sympathy for her. Moreover, when
Stacy accidentally damged the glass table, he told her to use her pocket money and shows no help.
● Lack of transparency and active involvement to make decision: Stacy had terrible workload
and had to work overtime to match the expectations of the supervisor. However, only when a
coworker enlightened her about working off the clok was considered unethical and against
company policies, did Stacy know about it. Her supervisor knew about what she was doing
but never told her. Furthermore, the company kept the information away from Stacy and she
was not acknowledged about this before.
● Lack of holistic view of the firm’s ethical culture: With all of mentioned reasons, it is clear
that leaders at DCH lack of holistic view of the firm’s ethical culture. As a result, not only
Stacy, many employees feel outraged about the working environment or how the company deals with their complaints.
Question 2: What type of conflict management style does Enzo have? Are there more constructive
ways for him to handle conflicts with employees?
Enzo has competing conflict style of management. Leaders having a competing conflict
management style are highly assertive and not very cooperative. Competing leaders believe in
winning at any cost and measure success by how much the other side loses. In this case, Enzo even
provoked Stacy, an employee, to pick up a fight against him. He also showed that he would not lose,
rather than tried to solve problems with his colleague.
To have more constructive ways of handling conflicts with employees, Enzo needs to be more open-
minded to take into account employees’ opinions, since he is a power oriented and even narcissistic.
Learning to listen to others can be a difficult task for Enzo, however, before handling any conflicts,
he needs to acknowledge the problem first and has a holistic view of it. Using the RADAR model, lOMoAR cPSD| 58511332
Enzo after “Recognizing” the problem, he needs to prevent those misconducts and problems in the
conflict from happening again. By discovering the reasons behind the conflicts, Enzo can find the
correct answer to solve the problems and recover the company or the relationships between employees afterwards.
Question 3. Describe the alternatives Stacy has in order to answer the candidate’s question and list
the advantages and disadvantages of each.
Option 1: Stacy chooses to tell the whole truth about the company and her actual experience + Advantages:
● The candidate will have a true review about the company
● Stacy will be able to help a candidate for their career path and decision whether they should work here
● Stacy remains her business ethics and follows her belief + Disadvantages:
● Enzo will be furious about Stacy and she may face even worse treatment from her boss
● Stacy’s career at DCH will be affected significantly
● The relationship between Enzo and Stacy will be much more terrible Option 2: Stacy lies to the candidate + Advantages:
● Enzo will be satisfied with her behavior
● Stacy will avoid conflicts with Enzo and the company, securing her job at DCH + Disadvantages:
● Her action will be consider unethical and dishonest to the candidate, giving them false information about the company
● If the candidate get the job, their career path will be heavily affected and Stacy somehow ruins it
Option 3: Stacy avoids the question by telling them to experience it themselves when they get a job + Advantages:
● Able to avoid the candidate’s question without lying to them ● Stacy will feel less guilty
because she does not lie to the candidate + Disadvantages:
● Enzo will be unsatisfied with Stacy’s response because she does not put a good word for the company
● The relationship between Stacy and Enzo can still be worse