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MGT 3213/MGT 3219 – BUSINESS ETHICS.

Task 2: Group Assignment – 20 %. Submission Date: APR 11 , 2016 Presentation Date: APR 11, 2016

 SELECT ONE CASE STUDY ONLY
CASE: 1.0
Web Porn at Work
Al Smetana is the founding president of a medium-size, Midwestern manufacturing firm, Rayburn Unlimited. He’s proud of the way his company has grown, and done so on the basis of an organizational culture committed to honesty, integrity and the intrinsic value of each individual. But now those values are being put to the test. It began when Al Smetana learned that an employee had tapped into the company’s computer system and figured out how to read people’s e-mail and to learn what websites they visited. Determining who the culprit was wasn’t difficult. When confronted about it, the employee admitted what he had done. Al Smetana immediately terminated his employment. But as he left, the employee said angrily, “Just ask Lindley about his computer usage,” referring to Craig Lindley, associate vice president for human resources and an old friend of Al Smetana’s. Although Al Smetana did not trust the discharged employee, he was disturbed by his comment and reluctant to let it go. So he called Craig Lindley into his office and asked him about it. After a few minutes of gentle questioning, Craig started weeping. When he recovered himself, he explained that for the past year or so he had been hooked on pornography on the web and at the office sometimes spent an hour or so a day looking at it. Al Smetana asked him whether his wife knew. Craig said she did not. He was too ashamed of his habit to talk to her or anybody else about it. Al Smetana then told him to take the rest of the day off, to think the matter over, and to return to Al Smetana’s office the next morning. When Craig left, Al Smetana stood and looked out the window, silently asking himself what he should do.

Questions:
1. Is Craig Lindley’s behavior a sign of some psychological problem that Rayburn Unlimited should help him overcome, perhaps with personal counseling? Or is dismissal called for? Should Al Smetana fire Craig to send a message to other employees not to misuse company time and resources?
2. Does the fact that Craig is a valued member of the company with a long record of service make a difference? Or that he is a personal friend of Al Smetana’s?
3. Was it right for Al Smetana to have asked Craig about his computer usage in the first place? Did he violate Craig’s privacy or civil liberties?
4. Because Al Smetana fired the employee who violated the company’s computer system, would it be inconsistent or unfair of him to treat Craig any differently?
5. Al Smetana and Rayburn Unlimited are committed to honesty and integrity (the upholding of which seems to support dismissal) and the intrinsic worth of each individual (which might argue for more lenient treatment). Are these values in conflict? What would you do if you were Al Smetana?

CASE: 2.0
Changing Jobs and Changing Loyalties
Cynthia Martinez was thrilled when she first received the job offer from David Newhoff at Crytex System. She had long admired Crytex, both as an industry leader and as an ideal employer, and the position the company was offering her was perfect. “ It’s just what I’ve always wanted,” she told her husband, Tom, as they uncorked a bottle of champagne. But as she and Tom talked, he raised a few questions that began to trouble her.
“What about the big project you’re working on at Altrue right now? It’ll take three months to see that through,” Tom reminded her. “The company has a lot riding on it, and you’ve always said that you’re the driving force behind the project. If you bolt, Altrue is going to be in a real jam.”
Cynthia explained that she had mentioned the project to David Newhoff. “He said he could understand that I’d like to see it through, but Crytex needs someone right now. He gave me a couple of days to think it over, but it’s my big chance.”
Tom looked at her thoughtfully and responded, “ But Newhoff doesn’t quite get it. It’s not just that you’d like to see it through. It’s that you’d be letting your whole project team down. They probably couldn’t do it without you, at least not the way it needs to be done. Besides, Cynthia, remember what you said about that guy who quit the Altrue branch in Baltimore.”
“That was different,” Cynthia responded. “He took an existing account with him when he went to another firm. It was like ripping Altrue off. I’m not going to rip them off, but I don’t figure I owe them anything extra. It’s just business. You know perfectly well that if Altrue could save some money by laying me off, the company wouldn’t hesitate.”
“I think you’re rationalizing,” Tom said. “ You’ve done well at Altrue, and the company has always treated you fairly. Anyway, the issue is what’s right for you to do, not what the company would or wouldn’t do. Crytex is Altrue’s big competitor. It’s like you’re switching sides. Besides, it’s not just a matter of loyalty to the company, but to the people you work with. I know we could use the extra money and it would be a great step for you, but still………”
They continued to mull things over together, but the champagne no longer tasted quite as good. Fortunately, she and Tom never really argued things they didn’t see eye to eye on, and Tom wasn’t the kind of guy who would try to tell her what she should or shouldn’t do. But their conversation had started her wondering whether she really should accept that Crytex job she wanted so much.

Questions:
1. What should Cynthia do? What ideals, obligations and effects should she take into account when making her decisions?
2. Would it be unprofessional of Cynthia to drop everything and move to Crytex? Would it show a lack of integrity? Could moving abruptly to Crytex have negative career consequences for her?
3. Is it morally wrong, morally permissible or morally required for Cynthia to take the new job? Examine Cynthia’s choice from a utilitarian point of view. How would Kant and Ross look at her situation?
4. What does loyalty to the company mean and how important is it, morally?
5. Under what circumstances do employees owe loyalty to their employers? When, if ever, do they owe loyalty to their coworkers?

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