5.

03 - Business Ethics Case Studies

Case Study: Substance Abuse

by Stephen Adams
Graphics and Commercial Art

Fred, a 17-year employee with Sam's Sauna, was fired for poor job performance and
poor attendance, after accruing five disciplinary penalties within a 12-month period
under the company's progressive disciplinary policy. A week later, Fred told his
former supervisor that he had a substance abuse problem.

Although there was no employee assistance program in place and the company had
not been aware of Fred's condition, their personnel director assisted Fred in
obtaining treatment by allowing him to continue receiving insurance benefits and
approved his unemployment insurance claim.

Fred subsequently requested reinstatement, maintaining that he had been

rehabilitated since his discharge and was fully capable of being a productive
employee. He pointed to a letter written by his treatment counselor, which said that
his prognosis for leading a "clean, sober lifestyle" was a big incentive for him. Fred
pleaded for another chance, arguing that his past problems resulted from drug
addiction and that Sam's Saunas should have recognized and provided treatment
for the problem.

Sam's Saunas countered that Fred should have notified his supervisor of his drug
problem, and that everything possible had been done to help him receive
treatment. Moreover, the company stressed that the employee had been fired for
poor performance and absenteeism. Use of the progressive discipline policy had
been necessary because the employee had committed a string of offenses over the
course of a year, including careless workmanship, distracting others, wasting time,
and disregarding safety rules.

Questions:

Should Fred be reinstated? No, because Fred was fired for poor performance and
absenteeism and not because his substances problem.

Was the company fair to Fred in helping him receive treatment? Yes, their personnel
director assisted Fred in obtaining treatment by allowing him to continue receiving
insurance benefits and approved his unemployment insurance claim.

Did the personnel director behave ethically toward Fred?

Did Fred act ethically for his company? Yes, Sam's Saunas countered that Fred
should have notified his supervisor of his drug problem, and that everything
possible had been done to help him receive treatment.

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 Would it be fair to other employees to reinstate Fred? No, because Fred had
committed a string of offenses over the course of a year, including careless
workmanship, distracting others, wasting time, and disregarding safety rules.

5.03 - Business Ethics Case Studies

Case Study: Discrimination in the Workplace

by Elaine E. Englehardt
Humanities/Philosophy

Marian, a top graduate from Loyola in Humanities, was hired by a major corporation
into a management position. Marian finished the corporation's management training
program top in her group, and is performing above the norm in her position. She is
really enjoying her work.

As a black woman she feels isolated, as there are no other black women managers
and few women in her area. One night at a company party she heard a conversation
between two of her male co-workers and their supervisor. They were complaining to
him about Marian's lack of qualifications and her unpleasant personality. They
cursed affirmative action regulations for making the hiring of Marian necessary.

Marian is very upset and wants to quit.

Questions:

Should Marian quit? No, she should not quit because according to business ethics it
is our responsibility towards employees to treat them equally and provide them safe
working environment.

Are her co-workers correct in their evaluation?

Should Marian confront the co-workers?

Should Marian file a discrimination suit?

Should Marian go to the supervisor?

What else could Marian do?

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 5.03 - Business Ethics Case Studies

Case Study: Affirmative Action

by Elaine E. Englehardt
Humanities/Philosophy

Peter is a vice president in a large corporation. As part of his duties, he supervises

fifteen managers; fourteen of these managers are men. Only one of the managers is
a black man, and one is a white female.

Peter is replacing one of the white, male managers. He has advertised the position
both in house and outside, as required by his company's hiring policies. After
reviewing all of the applications, he believes that Steve, an employee of the
company for 12 years, is the most qualified applicant. However, in the pool of
applicants there are three qualified women and two qualified black men. Morally
what should Peter do?

Questions:

Is it fair to hire Steve, even though this will still mean that the managers will have
definite gender and race inequity?

Is it fair to Steve to hire someone less qualified to agree with Affirmative Action?

Should Peter give up and let the other manager’s vote on who should be hired?

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 5.03 - Business Ethics Case Studies

Case Study: Employee Absence

by Stephen Adams
Graphics and Commercial Art

Joan, an employee of Great American Market, was warned about her excessive
absenteeism several times, both verbally and in writing. The written warning
included notice that "further violations will result in disciplinary actions," including
suspension or discharge.

A short time after the written warning was issued, Joan called work to say she was
not going to be in because her babysitter had called in sick and she had to stay
home and care for her young child. Joan's supervisor, Sylvia, told her that she had
already exceeded the allowed number of absences and warned that if she did not
report to work, she could be suspended. When Joan did not report for her shift,
Sylvia suspended her for fifteen days.

In a subsequent hearing, Joan argued that it was not her fault that the babysitter
had canceled, and protested that she had no other choice but to stay home. Sylvia
pointed out that Joan had not made a good faith effort to find an alternate
babysitter, nor had she tried to swap shifts with a co-worker. Furthermore, Sylvia
said that the lack of a babysitter was not a justifiable excuse for being absent.

Questions:

Was the suspension fair? I think the suspension was reasonable. Throughout some
undefined time, frame, Joan was cautioned a few times about her unnecessary non-
attendance both verbally and recorded as a hard copy, however she failed to
address settling the issue.

Did Sylvia act responsibly? Yes, Sylvia acted dependably. Joan neglected to practice
great confidence in her work driving Sylvia with no option other than suspending
her.

Should Joan be fired? No, I figure Joan ought to be offered one more opportunity
after her 15-day suspension period.

Should the babysitter be fired? No, the babysitter should not be fired. Joan was
suspended as her very own result exorbitant non-attendance and dismissing the

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 admonitions yet in the event that all Joan's non-appearance were cause by the
sitter,

Was Sylvia fair in her actions? Yes, Sylvia was reasonable in her activities she might
have terminated Joan however rather she was cultivated and just suspended her for
15days and allowed her a subsequent opportunity

Is there ever a solution for working mothers? there are a few kid cares homes and
sitters to look over.

Should working fathers take turns staying home? fathers ought to invest energy
with their children, however work should take first.

5.03 - Business Ethics Case Studies

Case Study: Networking and J.R.

by Doug Carter
Electronics Technology

The University needed to purchase a networking system. Tim pressed hard for the
3-COM network which Tiddley endorsed and supported. C.G. made an excellent
point that Novell was the system used in the industry as a standard. When Tim
learned that Tiddley could bid Novell, he agreed and bids were let for Novell's
Netware.

Three very high priced bids came back from companies C.G. had never heard of;
Tiddley bid $46,000 and BIG BYTE bid $20,000. Tim suggested that the low bid be
thrown out as low bids often are. C.G. was frustrated, claiming the hardware
shouldn't cost more than $14,000 - $15,000 at the most, proved it with ad prices,
but Tiddley got the bid, this time through Cripple Creek franchise's new salesman,
Jim (J.R.'s son).

A clause in the bid required the equipment to be operational in thirty days. Three
months later the Tiddley installers contacted C.G. asking for help. C.G. found that
Tiddley would have to develop special drives. C.G. reported this to the CCVU
purchasing agent who called Tiddley Corporate Office (about the 30-day clause),
they sent out 2 reps and fired the Cripple Creek store manager on the spot. J.R. put
his arm around the store manager, escorted him to CCVU personnel office, informed
the personnel officer that Computer Services had a new employee. The personnel
officer questioned the hiring; he soon left the University. The former Cripple Creek
Tiddley franchise manager remained with the University. The system finally came on
line, but has had many problems during its operation.

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 Questions:

1. Does the information presented raise questions about J.R.'s ethical

philosophy?
2. If so, who should be concerned?
3. Tim was apparently between a rock and a hard place. Should he have acted
differently?
4. What has CCVU taught C.G. Farnsworth about ethics?
5. What should C.G. do?
6. What was the ethical thing for the personnel officer to do?
7. If you were a member of the CCVU faculty, what would you do?

5.03 - Business Ethics Case Studies

Case Study: Purchasing Ethics

by Doug Carter
Electronics Technology

J.R. accepted a position at Cripple Creek Vocational University and he and his family
made a permanent move. Soon, J.R. was promoted to Administrative Vice President,
overseeing the purchasing department of the University. His oldest son, Jim, got a
good job in educational equipment sales at Tiddley Computer Corporation in Fort
Worth.

As Vice President, J.R. quickly saw the need for 4 to 5 computers in his office.
Although CCVU had a bidding policy, J.R. purchased Tiddley Corporation's computers
direct from Tiddley for about $3500 each, when IBM clones were selling for around
$2000 and the clone had more promising features than the Tiddley. Jim handled the
sale and received a healthy commission on the sale. If the purchase had gone
through the normal bidding process, the TC model would not have been selected.
Tiddley's local Cripple Creek franchise dealer objected to Tiddley Corporation that
his protected franchise had been bypassed in the deal.

Questions:

Since J.R. was over the purchasing department and had final decision authority,
should purchasing have gone through the normal bidding routine? the buy should
go through the typical offering measure. JR ought not simply follow his own choice
since he is the VP of CCVU, he should consent to the offering strategy

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 Is it acceptable for a V.P. to bypass the normal routine to do business with a family
member? It isn't OK for a VP to miss the ordinary daily practice to work with a
relative. Business isn't done sincerely however it is done keenly.

Was J.R.'s decision not to request bids an ethical choice? It is plainly an exploitative
decision for J.R. not to demand offers. In a position or occupation that he has.

What should the college purchasing agent do? The school buying specialist should
check break down first what is awesome for Cripple Creek Vocational University and
afterward know which one offers the best provisions and where they can get it in a
lot less expensive cost.

Should anyone else at CCVU have any interest in this activity? Yes, any other that
have any intrigue or be engaged with this action in light of the fact that the choice
of the Vice President which is J.R. can influence them and their foundation.

Has Tiddley's Cripple Creek franchise owner been wronged? Tiddley's Cripple Creek
establishment proprietor has been violated particularly for losing the chance for him
as well as his expectations of giving more effective hardware to the University

Should Jim have made the sale? Received a commission? Yes, Jim ought to have
made the deal, He is only a worker of Telecommuter Corporation and he is just
tackling his work.

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