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Business Organization and Management Ethics

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The assignment/paper is an ethics exercise with two different cases to analyze and determines what direction/decision I would take in each case. The first case is to justify my decision to allow a top performing staff member, Kay, to apply for a different position within the company. Kay and I both are aware that I would not be allowed to replace her due to budget cut and a friend of the boss is also applying for the position. The second case is Marty has miss applied an expense for a local community development committee dinner meeting.

Case 1: Stephanie Lyncheski, after careful consideration and working through the Checklist for Making Ethical Decisions matrix (Schermerhorn Jr., 2010), I have made my decision to allow Kay Smith to apply for a new position within the company. I know that I would not be allowed to replace Kay due to budget cuts and she is a high performer for my group. The decision is what is best for the company and Kay. I want to walk you through my decision process to provide you an understanding of why I believe it is the best decision to allow Kay to apply for the new position within the company. I utilized the Checklist for Making Ethical Decisions matrix with the steps below: • Step 1: Recognize the ethical dilemma. • Step 2: Get the facts. • Step 3: Identify your options. • Step 4: Test each option: Is it legal? Is it right? Is it beneficial? • Step 5: Decide which option to follow. • Step 6: Double-check your decision by asking these two follow-up questions: o “How would I feel if my family finds out about my decision?” o “How would I feel if my decision is printed in the local newspaper?” • Step 7: Take action. Step 1: Recognizing the ethical dilemma: Which ethic view should I take, the utilitarian, individualism, moral rights or justice view? The utilitarian view delivers the greatest good for the most people. The individualism view advances long-term self-interests. The moral rights view respects and protects the fundamental rights of people. And the justice view treats people impartially and fairly. The utilitarian, moral rights and justice views would require I approve Kay’s request to apply for the new position because she is deemed to be a long term employee for the company and is a high performer which in the long term is best for Kay’s growth within the company. On the other hand, the individualism view would require I do not let Kay apply for the position because I need Kay for two main reasons. 1. Kay is a high performer, which helps me look good to my management and 2. I cannot replace anyone who leaves for quite some time due to the budget cuts, which will put additional stress on the my team and myself if she leaves the team. Step 2: Get the facts: 1. Kay knows my situation that I cannot replace her and she is the top performer within my team. 2. By asking my permission to submit an application for the new position in a different division of the company, tells me she wants to stay with the company but is looking for advancement and more challenging work. Step 3: Identify your options: Option 1: I can tell her no with an explanation of how much she is needed in my team. Option 2: I can give her permission to apply for the position. Option 3: I can give her permission and request the hiring manager not to consider her due to my team’s needs. Option 4: I could tell the hiring manager about the boss’s friend’s son, to make sure the son gets extra consideration which should keep Kay from being hired for the new position. Step 4: Test each option: Is it legal? Is it right? Is it beneficial?: Option 1 is legal and beneficial but I do not believe it is right because Kay has worked hard to have the qualification required for the new position and she is a high performer. Option 2 is legal, right and beneficial. Kay is a high performer and has the potential to rise within the company which could help me later because she would appreciate me letting her apply for the position. Option 3 is not legal or right but is beneficial. The benefit is it allows Kay to go through the application process and she will think I am a good manager so when she does not receive the position she will stay with my team. Option 4 is not legal or right but could be beneficial. The possible benefit is Kay would not receive the position and stay with the team. Step 5: Decide which option to follow: I chose option 2, to give her permission to apply for the position. I know from personal experience, when a manager holds an employee back for their own team’s benefit. it can back fire on the manager. The employee usually will leave the company so the manager is still short an employee and the company did not retain a good employee. It is better to take the high road and help people progress and not hold them back. Step 6: Double-check your decision by asking these two follow-up questions: 1. “How would I feel if my family finds out about my decision?” I believe my family would be proud to know I made the right decision for Kay and the company. 2. “How would I feel if my decision is printed in the local newspaper?” I would feel proud to let anyone know that I did what was right for Kay and the company. Step 7: Take action: I have scheduled a meeting with Kay, to give her my decision to let her post for the position within the company. I also will be discussing with my direct management, what I can do as an incentive, for Kay, if she is not selected for the new position to help her want to stay with my team. The incentive option might be to move her to a higher grade with a pay increase or spot award for to recognize her performance and look for ways to make her current position more challenging and rewarding. I believe this would be necessary to keep her within the team if she is not selected for the new position. In conclusion, the best decision for the company is to allow Kay to apply for the new position within the company. This allows Kay to know that she is a valued member of the company and will not be held back when opportunities present themselves.

Case 2: Marty Jose has applied charges incorrectly to the advertising budget. I am meeting with Marty to discuss what actions need to be taken since all internal audit discoveries are reported to me for resolution. Marty expensed a dinner for several hundreds of dollars for a local community development committee dinner in which Marty is the firm’s representative. The entertainment budget has been eliminated so Marty chose to apply the expense to the advertising budget. Before meeting with Marty, I have had a meeting with the last person that held the position for the firm. I was told the dinner expense, for the local community development committee, was always covered by the firm’s representative in the past. Also the firm values the committee members and is committed to the local community development. Then I will make sure I have read and evaluate the expense policies and have determined the expense is covered and applicable. I have also reviewed my findings with the head of the finance department and have received finance’s preferred option on where the expense should be applied. My next step would be to meet with Marty’s manager to have an understanding of his knowledge of the expense and if he had preapproved Marty’s actions. In my meeting with Marty, I first explain why we are meeting and request her to provide her explanation of the events. I am hoping this would provide me an idea if this is a common practice among the employees and if additional training is warranted for this department. I would next explain to Marty that she should have approached her manager with the expense with an explanation of the expense and apply the expense to the wrong account is not acceptable and in the future stronger action would be taken for any reoccurrence of this type of action. I would in conclusion of the meeting inform Marty that should would be receiving an email from her manager on how to correct the expense in the system.


Schermerhorn, J.R. (2012). Management (11th Edition). Wiley, John & Sons, Inc.
Ross, Judith A. (2007), Managing Teams for High Performance, Harvard Business School Publishing Corporation.…...

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