HOMEWORK 2
Avoiding Permanent Damage from Temporary Help
Dated: 08/01/2012
Keller Graduate School of New York
Course MGMT 520
Business: Its Legal, Ethical, and Global Environment

In nowadays, background check of hiring employee is practicing by almost all agencies. Point is that, the skills of the applicant can be, somehow, figured out. It is much more difficult to assess the level of trust, honesty, mental toughness, and loyalty. Reading through chapter 9, and conducting a slight research, my answers to the questions of the given scenario are as follows: 1. Do temporary agencies have a “duty” to run background checks? If so, did Robert half “breach that duty?” Why or Why not?
According to the law of negligence, temporary agencies should follow the duty policy on background check on pre-employment, in order not to satisfy an element of negligence. In case of Robert Half International Inc., and Fox Associates, Inc., I don’t think, that duty was breached, the company trusted to provided information by Ms. Ross about herself, and she got good recommendations from her former employers. At some extend, it is a background check. 2. The court ruled against Fox Associates. Was the court correct? Do you think Fox should have done its own background check? Why or Why not?
I agree with the court decision, that it was determined that duty is not breached, because it happened unknowingly. Even though the company recommended the employee, Fox could do its own background check as well. 3. The fact pattern mentions that Sunbeam suffered similar damages when it failed to do its own background check on Mr. Dunlap, its former CEO. Who was more at fault, Sunbeam or the Executive search agency?
In this case, the fault has an Executive search agency more, than Sunbeam, as it its straight duty to check background before approve for hiring. However, Sunbeam is liable for its losses also, because it should request and check the information about hiring employer. 4. Strategically and legally speaking, why do you think the former employers said nothing about Ms. Ross’ history and gave her good recommendations?
There could be some reasons: 1). the former employers might feel sympathetic towards Ms. Ross, and they don’t believe that she has stolen any funds; 2) Ms. Ross, indeed a good specialist in her field; and the last 3) The former employers just didn’t tell the truth. 5. Develop ONE unique background check policies for your company on employees hired through a search firm or temp agency.
The main idea on background check which I’d like to develop, besides gathering information, confirmation of address, criminal records searches, is that pre-employee will answer some “simple” questions, which will ask him/her the same, but in different manner, and maybe I would add some psychological tests, which will let me know if that employee was capable to do something unethical in his past work experience.

REFERENCES:
Jennings, Marianne M.. Business: Its Legal, Ethical, and Global Environment, 9th ed.,