Ethics
Utilitarian Theory
1. Which action will do the most good and the least harm for everyone who is affected?
2. How did you determine what is âthe most goodâ and âthe least harmâ? Did all team members agree?
3. Explain your choice.
Rights Theory
1. Which action protects and furthers the rights of the stakeholders?
2. When stakeholder rights are in conflict, how do you decide whose rights take precedence?
3. Which action would you want done to you if the roles were reversed?
4. Would you want to live in a world where everyone engaged in the action in question?
5. Explain your choice.
Distributive Justice Theory
1. Which action produces a fair distribution of benefits and costs for all stakeholders?
2. How do you determine what is fair? Who decides?
3. What action provides stakeholders with equal liberty and equal opportunity?
4. Explain your choices.
Caring Theory
1. What action cares for those individuals with whom you have a special relationship?
2. Which action helps those who are vulnerable and dependent on you?
3. Explain your choices.
Virtue Theory
· What action(s) displays virtuous character traits (e.g., integrity, honesty, fairness, loyalty, etc.)? What virtues are displayed?
· What action(s) displays vices (e.g., dishonesty, deceit, selfishness, etc.)? What vices are displayed?
· Explain your answers.
Case 1: When the Boss Doesnât Like Her
Anna is the office manager for a Grocery Distribution warehouse in Ft. Myers, Fla. Annaâs facility is part of a large Atlanta-based conglomerate that wholesales and distributes gourmet specialty food products throughout the southeastern United States. Annaâs been at Grocery Distribution for four years, starting as an
administrative assistant in the sales department. She was promoted to office manager 18 months ago and reports directly to the district manager, Justin. Anna likes her job. She enjoys her co-workers and hopes to make a long-term career at Grocery Distribution. As a single parent of two young daughters, she was delighted with the salary increase that came with her promotion. Justin is a new district manager for the Ft. Myers facility. He has made some changes in the structure of the organization, which, for the most part, have been well received by the staff.
Janet is the receptionist. She works at the front desk, greeting visitors, scheduling appointments and taking care of the mail. Anna is Janetâs supervisor. Janet recently went through a difficult divorce, and now that she lives alone, Anna knows that Janet struggles to make ends meet on her receptionistâs salary. Outside of work, Janet is active in community theatre. At Janetâs most recent opening night, Anna and several other Grocery Distribution employees were in the front row of the theatre cheering on Janetâs starring performance. Janet had some rough patches during the divorce, when she was understandably distracted, but overall, Anna is pleased with Janetâs work. Janet has received positive performance appraisals.
Justin does not like Janet. He claims that she is careless and makes far too many mistakes, and with her casual attire, she doesnât âlook goodâ at the front desk. âBesides,â he says, âsheâs not really that interested in her job. That community theatre thing takes way too much of her time.â When Janet asked to take the morning off the day after her opening night, Justin commented that now sheâs undependable and insisted that Anna talk to Janet about it, even though Janet seldom misses work and her absence that morning was easily covered by other staff.
Friday morning, Anna is called into Justinâs office. It has been a busy week because Justin is getting ready to leave for a two-week vacation. Several projects must be completed or offloaded to other staff before he leaves. It was decided that Anna would take care of some of Justinâs projects while he is gone, and she is confident things will go well in his absence.
While Anna is gathering up her papers at the end of the meeting, Justin says, âThereâs just one more thing, Anna. While Iâm gone, I want you to document Janetâs poor performance and write up an appraisal on her. Have the paperwork on my desk and ready for me to sign when I get back, and then you can terminate her. I want her out of here within the next 30 days.â
Anna is stunned. She knows Justin dislikes Janet, but she is not sure how she can document Janetâs âpoorâ performance because she believes Janet is a good employee. Any time she has talked to Janet about Justinâs concerns, Janet has tried to improve. Janet knows Justin does not like her, and she has made it clear to Anna that if Justin has any problems with her work, she wants to know immediately so she can correct the problem. âI donât want to lose my job,â sheâs told Anna.
Anna wonders what to do. Grocery Distribution has a published Code of Ethics, and there is an HR department at headquarters in Atlanta, but there is no HR representative at Annaâs facility in Ft. Myers.
What would you recommend to Anna? What consequences may occur as the result of her actions?
Case 2: Now You See It, Now You Donât
John is the facility manager for Harrell Construction, a privately owned construction company. The company employs 35 people and is owned by Alan Harrell and his wife, Mary. John has been at Harrell Construction for four years. It has been a good spot for John after a series of short-term construction jobs that either went nowhere or ended when the small companies he worked for were out-maneuvered by larger organizations and closed.
As the facility manager, John runs the shop and manages all of Harrellâs equipment. He inventories equipment and supplies, schedules equipment for various jobs, checks equipment back in, and makes sure it is repaired and ready for use for the next job. John runs a tight ship. The facility is organized and clean, and his attention to detail has cut time loss from malfunctioning or unavailable equipment to nearly zero.
Alan has been pleased with Johnâs work, and over the course of Johnâs employment, Alan and John have become good friends. They do not socialize outside of work, but they often eat lunch together and on occasional afternoons, youâll find them out on the golf course. âJohnâs a good man,â Alan says, âThe shop has never been in better shape, and his records are meticulous. I finally know what I own and where it is.â
âThe Harrells are great people to work for,â John says. âMary doesnât come around the office much, but we see her at the company picnic in the summer and at the annual holiday party. They put on quite a bash for employees. Itâs always a family event. Their two teenage boys always come to the events, and everyoneâs family is welcome. My wife and kids love it. We always have a good time.â
âBesides that, the compensation is fair. The Harrells are right in line with what everybody else pays,â John adds. âThe benefits are good, too. Donât know what I would have done without the health insurance when my wife went through chemo two years ago. I plan to stay with Harrell Construction long term if I can. Iâve got two kids headed for college and retirement to think about, and this is a good place with a future.â
Things arenât always as perfect as they seem, though. Yesterday at lunch Alan confided to John that he and Mary were getting a divorce. âSheâs never had any interest in this business,â Alan said. âShe has never helped out in the shop, even in the early years, when we were really struggling. But sheâs got a sharp lawyer, and I know sheâs going to claim half the company.â
âI need you to help me out, John,â said Alan. âThe companyâs biggest asset is our equipment. Mary doesnât know what weâve got, and with the equipment out on different job sites, nobody ever sees all of it except you. I want you to get out those inventory sheets and make some of those high-priced lifts disappear. Iâm worried
there wonât be anything left after her lawyers get done with me. Iâd hate to think weâd have to close down and leave everybody out of a job.â
As is common with many small, privately owned organizations, there is no formal HR department at Harrell Construction, and Alan Harrell has always made the decisions. What is John going to do?
Case 3: Real Sales or Wishful Thinking?
Robert sells shipping supplies for a warehouse supply wholesaler in Denver. He has been with Warehouse Supply for almost a year, hired fresh out of Collegiate U with a degree in marketing. Robert says it is his dream job. He always wanted to be in sales, and he loves the organized chaos of a warehouse as trucks and freight move in and out. He has a real understanding of warehousing, learned while he was working summers and part time as an order picker in a club store warehouse. He worked there until his junior year at Collegiate, when he had the accident on Highway 17 that left him a paraplegic. After the accident, he spent months in rehabilitation
and had to take some time off from school. Then, because he was in a wheelchair, he could not go back to his job as order picker in the warehouse. He still got his marketing degree, though. It just took him a little longer.
âI really like sales,â Robert says, âIt gets me out and about, and I enjoy working with the customers. I was afraid my wheelchair would put people off, and Iâd be stuck behind a desk for the rest of my life. Iâd hate that. Iâm thankful that I have the accessible van and can drive my own route. I know Iâm a little slower than some of the guys, but I think Iâve earned their respect, and I like the challenge. I donât always make the numbers, but people need to know that there is a lot more that a paraplegic can do than what he canât do.â
Unfortunately, sales have been down for Warehouse Supply for the last two quarters. When consumers buy less merchandise like toys, clothes, gadgets, etc., there are fewer shipments in and out of warehouses and less demand for warehouse supplies. Like most other sales organizations, Warehouse Supply compensates its sales staff with commission and bonuses in addition to base salary. Besides the sales staff, management-level employees also receive bonuses based on sales numbers. When sales shrink, everybody feels the pinch.
Marty is the sales manager for Robertâs district. When Marty interviewed Robert for the job, he was impressed with Robertâs knowledge of warehousing, his enthusiasm for sales and his outgoing personality. Heâd never hired anyone in a wheelchair before, but he thought, âWhat the heck, I think this guy can do the job, and we should give him a try.â Robert learned fast, and once the customers got used to the idea of a guy in a wheelchair in the warehouse, things seemed to be fine, although Marty had to admit that Robertâs sales numbers were never outstanding. Most months, Robertâs sales are at or near the bottom of the pack. âHeâs just a little slower,â Marty said. âBy the time he gets that van parked and gets his chair in and out, he just canât get around to as many customers in a day as the other guys. But he does all right, and he makes a lot of calls from the office. Canât say heâs not on top of his customers needs. He takes good care of them.â
With sales down, Marty is getting pressure from Frank Bishoff, Warehouse Supplyâs vice president of sales at the home office in Phoenix, Ariz. Frank is always a little edgy when bonuses are due, but this time he is really on Marty. He called again this morning. âHey Marty, whatâs going on out there? All I see is inventory stacking
up and your sales numbers going down! I know everybodyâs sliding a little in this economy, but your second quarter numbers are terrible. Youâve got to move some product, and move it now! Iâm getting pressure from the guys upstairs. You know that everybodyâs bonus is riding on this, and weâre nearly at the end of the quarter. Iâll be in Denver at the end of the month. Weâre taking a closer look at your numbers and your people. Youâd better tell anybody whoâs not up to speed that it has got to changeâor theyâre going to be gone. Whatever it takes, Marty, get those numbers in now!â
Marty has three weeks before Frank comes to Denver. âHeck, if theyâll just take it easy until the next quarter, weâd be fine,â thinks Marty. âI know our numbers are a little flat right now, but weâll have big orders next quarter, when Quality Retail buys for their anniversary sale. I just wish we had those numbers now; then Frank
and his cronies would leave us alone. I think Iâll give Robert a call. Quality Retail is his account. If heâd just write up their anniversary sale orders today and get them in the system, weâd all be off the hook. Why not? Frank said whatever it takes. We can always back the numbers out at the end of the quarter if need be, and Robert can
square up the account with Quality later. Besides, he might just save his own job. Why should I take the heat alone? Itâs time he knew Frank has always thought it was a lousy idea to hire a guy in a wheelchair. Maybe Robert does belong in a desk job.â
Warehouse Supplyâs HR department is located at the home office in Phoenix, and Marty has never had anything to do with HR. A representative from Phoenix comes to Denver occasionally to do some trainingâusually sexual harassmentâand Marty knows there is an employee handbook, but heâs never read it beyond the statement he signed concerning employment-at-will. Considering the pressure he is under from Frank, he believes the focus for sales at Warehouse Supply is on making the numbers and not much else.
âThereâs no harm in getting the orders in early,â Marty muses. âBesides, we can always back the numbers out later if we need to. And this way everyone gets their bonuses. Isnât that what they really want anyway?â
Is there an ethical issue here? If so, what is the issue and how should it be addressed?
Case 4: The Best Person for the Job
After 25 years, Art is finally ready to retire and take it easy. Art teaches accounting and general business courses at Youngstown Community College. The business department at Youngstown offers business administration classes transferable to State University as well as professional and technical programs that culminate in a certificate after one year of study or an associateâs degree after two years of study. Youngstown has a dual enrollment agreement with State, and as a result, many business students at Youngstown are also enrolled at State.
Art teaches several of the business transfer classes at Youngtown, but his real love is the non-transfer professional accounting program. He was part of the faculty that created the program, and over the years he has taught hundreds of
accounting students and helped them obtain internships and find employment in the community. Artâs golfing buddy sometimes jokes that every bookkeeper in town has been through Artâs accounting classes.
Besides the regular accounting classes and internships, Youngstown maintains an accounting lab where students can get tutoring help if needed. The current lab tutor is David, who was hired two years ago when Dianne retired after nearly 10 years
as the accounting tutor. David is a former student of Artâs and holds an associateâs degree from Youngstown and a bachelorâs from State. The lab job is part-time, which works out perfectly for David, leaving him plenty of time to pursue his MBA in accounting at State. David wants to teach accounting at Youngstown when he completes his MBA.
As a tutor, David has brought the accounting lab to life. He relates well with students, is an excellent tutor, and the faculty sees him as a valuable member of the department. In the two years he has worked in the lab, David has become good friends with Evan, the business department dean. They frequently have lunch together and even socialize with their wives outside of work. Last summer the families went camping together over the 4th of July, and this year they expect to do the same.
Evan is chair of the committee to find Artâs replacement. The committee consists of Evan, two additional faculty members, an administrator from another department and Mary, the department chair for business and accounting. On Monday morning, Mary met with Evan to plan out the recruitment process.
âI know HR requires us to do a job search,â said Evan, âbut even so, thereâs no reason why we canât move David into Artâs position. He relates well with our students, knows all the ins and outs of the college, and is well liked by the faculty.â
Mary is surprised at Evanâs suggestion. âDavid is a nice guy, and we all like him,â she said, âbut heâs not qualified. This position requires a masterâs degree, and heâs only got a bachelorâs.â
âHe doesnât need a masterâs degree to teach in the professional/technical program,â said Evan. âHeâs perfectly qualified for that, and we have plenty of other faculty that can teach the transfer program. David is in school anyway. Heâll get his MBA next year, and until then, weâll just schedule him for the professional/technical program, and weâll fit the other classes into other faculty membersâ schedules.â
âThis is not how we normally replace faculty,â said Mary. She was particularly disturbed that Evanâs attitude indicated it was a done deal.
âItâs no problem,â said Evan. âRecruitment is just an HR exercise anyway. Iâll have the paperwork ready for your signature by tomorrow.â
The paperwork, marked âconfidential,â was in Maryâs mailbox the following morning. It contained all the documents necessary for HR to launch a full-scale recruiting plan, including a new job description written by Evan. Instead of the customary broad-based job description for a faculty member qualified to teach university-transferable and non-transfer classes, Mary found a job description that described David exactly.
âThis is a set-up,â Mary mumbled to herself. She knows that even with five members on the hiring committee and the required selection process, the actual hiring decision is left to the dean. âIt looks like Davidâs got the job no matter what. What good is Youngstownâs ethics committee when the deans have the power to do as they please anyway?â
What should Mary do?
Case 5: What Ever Happened to Lana?
Once the rumor mill in the business department at Youngstown Community College got wind that the dean, Evan Comstock, wanted to move David into the faculty position vacated by Artâs retirement, it was all anyone could talk about. No one was surprised at Evanâs intention because he had taken David under his wing two years ago when David was hired as the tutor in the accounting lab. Evan and David had become good friends since, and there had been previous instances of favoritism that left everyone feeling uneasy, but this was really too much.
The problem was that Artâs position required an MBA in accounting, and David had only a bachelorâs degree. Although David was enrolled in an MBA program at State University, he wouldnât be finished for at least another year. Until then, he would only be qualified to teach professional and technical accounting courses and none of the classes that transfer to State. The rest of the accounting faculty would have to pick up the slack until David finished his MBA. It would increase everyoneâs
workload and create a scheduling nightmare. While everyone liked David and agreed he was a great tutor, there was a lot of grumbling.
They didnât have to grumble for long. Evan had rewritten Artâs job description to ensure that David would qualify. When the new, watered-down job description landed on vice president Schillingâs desk, he called Evan immediately. Schilling was never one to mince words. âEvan, what are you thinking over there?â he shouted, and that was the end of Evanâs plan for David.
The position still had to be filled, so HR conducted the recruitment process, and a selection committee was formed consisting of Evan, the department chair, two additional faculty members and an administrator from another department. The recruitment process generated a number of good applicants, and the committee finally narrowed down the pool to five well-qualified candidates to interview.
Everyone on the committee thought the interviews went well, but, of course, Evan didnât like any of the candidates. There was much discussion and second interviews with two candidates until Evan reluctantly agreed to hire Lana.
Lana had several years of part-time teaching experience and had been a practicing CPA for a number of years. She had the required MBA and was eager to transition out of accounting and into full-time teaching. She was scheduled to start in the fall because she was currently living in a small town 200 miles south of Youngstown. She immediately started shopping for a house in the Youngstown community and planned to move her family during the summer break.
Fall term enrollment was up in the accounting program and classes were full. It seemed Lana was off to a good start. She fit in well with faculty members and had
positive student evaluations. Everyone seemed pleased, except Evan. He claimed Lanaâs high student appraisals were because students knew she was âan easy Aâ and not from good teaching. He changed her winter term class schedule, giving her night classes followed by early morning classes the next day. He seldom visited other instructorsâ classes, but monitored Lanaâs lectures constantly. Lana told Mary, the department chair, that his frequent visits to her classes made her nervous and were disruptive. He would come into her class in the middle of a lecture, ask inappropriate questions and then walk out before class was over. It happened so often that even students were getting annoyed. After class, Evan would send Lana an e-mail criticizing her teaching, but when she asked to talk to him about it, he would never schedule an appointment. Some days he would stop by her office just to ask her what she was doing, or he would stop by when she wasnât scheduled to be there and the next day he would ask her where she had been.
During tax season, Lana worked part-time for a CPA firm, as did most of the other accounting instructors. This raised even more ire from Evan. He told her she was off campus too much and asked her to give him a weekly schedule every Monday morning so he would know where she was. No other faculty was required to turn in a schedule. At the end of winter term, Evan set up appointments to meet with students who had not done well in Lanaâs classes. He asked them to critique her teaching.
âWhy doesnât he talk to my âAâ students?â Lana asked Mary. âI think heâs trying to drum me out of here,â she said tearfully. âI feel so guilty for my family. They changed their lives so we could move to Youngstown and I could have this career. Some days, he has me so on edge I just want to quit. You know I canât win. Even if
I tough it out, Iâm on trial service for two more years. He can decide to dump me at any time, and thereâs nothing I can do about it. Some faculty say heâs just waiting for David to finish his MBA. I donât know what to do. If he lets me go, what do I say to my family?â
Is there an ethical issue here? If so, what is the issue and how should it be addressed? What is the responsibility of HR in this issue? What should Mary do?