Case Study
Jane is a new sales rep in a major small appliance manufacturer. She is placed under the guidance of the firm's most productive sales rep, Ann Green. Jane has a problem with the reporting of expenses. She feels that she should only report her actual expenses while Ann and the rest of the reps inflate their actual expenses. Ann's rule of thumb when it came to recording expenses was to inflate them by 25%. Her rationale was that the company owed them for their hard work and extra hours they put in. When Jane attempted to take the ethical approach and record actual expenses, Ann responded in an angry tone. She felt that her Job, as well as the jobs of the other reps, would be in jeopardy if Jane reported accurately. Ann was satisfied with the code that her and the other reps shared and they all agreed that the company did not really need that money because it was very profitable. The problem in this case is that Ann and the other reps are reporting costs unethically. They inflate expenses in order to create more income for themselves. The magnitude of this problem on a scale of 1-5 is a 5. This problem is very serious. The company is being charged for expenses that don't really exis
They should try and come to a mutual agreement about these practices until they are satisfied. They seem to create an adversarial relationship with employees. This must be done earlier rather than later so a relationship can be established. Suggested Changes in ManagementThe company could ask their employees to provide receipts for all expenses not just expenses under $25. They need to be compensated for the work and sales that they put in. Companies should monitor the actions of their employees more closely if they want to limit unethical practices. Issues1) What should a new employee do if they disagree with the common practices of the existing employees at a firm?2) What is an employee's ethical responsibility in terms of whistle blowing against dishonest employee practices?3) What role does the company play in pushing their employee's to behave in an unethical fashion? 4) To what extent should a company monitor the actions of its employees, and to what extent should an honor system be implemented?5) What steps can be taken by a company to limit the amount of unethical recording done by its employees? Discussion A new employee should attempt to meet with fellow employees and discuss the practices that they disagree with. Like Ann said in the case, it could result in the other reps losing their jobs. Jane will also alienate herself from the rest of the employees at the firm. The company could also hire a person with experience in expense recording to check into the recording of expenses within the company. Companies can monitor the actions of their employees more closely in an effort to limit unethical practices among employees. They must feel like they are being rewarded and compensated fairly for their efforts. This honor system took the employees word when it came to gas expenses as well as over time honors worked. His company like the appliance manufacturing company did not have a person implemented within to deal with the checking of expenses within the company. How to Improve the Situation The best way to improve this situation is to make the employees feel like they are part of the management team.
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Acceptance Essays
