ABC Credit Finance is a credit card provider with regional payment processing centers. You are a manager of
one of these centers. You are an at-will employee in a typical at-will jurisdiction. ABC is in competition with
other card companies in a recent interest rate and balance transfer marketing promotion. Concerned about effect
of the competition on its revenues, ABC has instituted the following:
- Increased late payment penalties
- Reduced length of billing cycle
- Immediate reporting of late payment to credit reporting agencies
- Unilateral review of existing customer interest rates against credit scores with corresponding increase of rates
quarterly to those whose scores fall into “poor” category
- Payments that arrive on or up to 24-hours before the payment due date are not to be processed until the next
business day following the due date before processing the payment, and late charge applied, on the theory
customers will have difficulty proving timely payment.
ABC has notified its customers about changes 1 through 4. However number 5 is an confidential inhouse
“unofficial” policy change that has been communicated to all regional offices.
RESEARCH AND ADDRESS THE FOLLOWING AND ANY OTHER LEGAL/ETHICAL ISSUES YOU
IDENTIFY IN THIS SCENARIO:
• The legal/regulatory provisions of the law that apply to ABC’s payment processing practices.
• The ethical theory most prominently displayed in ABC’s actions in making these policy changes.
• Will you as manager of the processing center implement policy no. 5? Why or why not? What are your ethical
• If you choose not to implement no. 5, what options do you have, if any, for protection of your job as an at-will
If you are fired for refusal to implement no. 5, what might be a basis for a wrongful discharge action against
present in Argentina, Chile, Colombia, France, Mexico, Peru, and United States. The company was founded in 1969 by Luiz Seabra, but it was only after a year that he opened his first store, where he himself served the customers. After a few years direct sale was adopted as their main business model and the store was closed. In this business model, without any physical store, anyone could be one of their “beauty consultants”, who were in charge of the direct sales, which led the brand to expand rapidly across the country. “In the Brazilian market, they are the leading direct selling player with more than 1.8 million Natura consultants, and they are currently expanding their retail sector through own stores and partnerships with drugstores chains” (Certified B Corporation). Recently, Natura, Aesop and The Body Shop came together and gave rise to the Natura & Co group. In order to gather information and diagnose Natura’s organizational culture, I used five main sources. The first one was Natura’s website, used to assess the way it introduces itself to the public and the way it communicates with consumers. On the website it is also possible to look at the products they offer, the history of the brand, and the social and environmental causes they are involved with. In addition, I found it relevant to start researching there, because through it we can analyze Natura’s perspective on itself, which influences its organizational culture. The second source I based my research on was Natura’s Annual Report of 2017. In this document it is possible to analyze the brand positioning, as well as its mission and values. Moreover, the annual report provides information on the company management, staff training, strategies to reduce environmental impacts, and the most significant activities of the year within the company. After reviewing these sources, I interviewed Alessandra Liuchy, memb>GET ANSWER