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Ethical Case Study

C-Considering all the facts

The overall situation for Jack is very critical as he is a new summer intern and he came across a falsification by Matthew Smith, who was Jack’s classmate and has been his colleague last summer in an accounting company. Smith presented fake details about his work experience of the organization where both Smith and Jack worked together. It was unethical on Smith’s part and Jack was in the knowledge of this falsehood. On the one hand it was the matter of organizational integrity that Jack has to maintain being a part of that culture as an intern and on another hand he has to consider Smith’s situation as if Jack reveals the truth about Smith then latter will have to face enquiry as per company’s rules and regulations which could be damaging for his career. Also, it could result in the enmity of Jack and Smith. The whole scenario has turned out to be a dilemma for Jack and he has to make a decision.

A-Assess alternative actions

Organizational integrity is the most important factor for every member of the organization in any capacity. Therefore, Jack should realize that whatever Smith has done is unethical and against the integrity of his organization. After careful consideration of the whole situation, Jack should directly approach Smith and make him realize his actions. Both John and Smith have been classmates and colleagues so; the former should make an effort so that latter can rectify his mistake about the false declaration of information to the company. Jack should first develop good relation with Smith to maintain an environment where Smith can trust him. Also, Jack should make sure that the conversation between him and Smith remains confidential. Once Smith has developed trust in Jack, then it will be easy for Jack to bring Smith on the right track. It’ll be an achievement of Jack if he successfully makes Smith realize his mistake. Further, if Smith becomes fully aware that he made a mistake by faking information, then next step would be to prepare him to admit this to authorities. This would be repentance for Smith and a sense of accomplishment for Jack.

Review of Ethical Issues

In an organization, all the members are under ethical obligation to remain honest and loyal to the organization in the course of their duties. Being honest means all the employees in an organization in any capacity should declare correct information, there must be no concealment of information from employees and at any stage, no wrong information should be shared with the company. In the given case, providing wrong information was an unethical behavior of Smith, his act is totally against the integrity of the organization. Even if Smith completes his term without being noticed, this behavior may encourage him to present wrong information in future to any other company that he may join. Also, Jack should understand his moral and ethical obligation as he is in the knowledge of false information given by his ex-classmate and colleague. As a professional, it is the responsibility of Jack to maintain organizational ethics and integrity.

Evaluation of Potential outcome

If somehow company finds out that Smith has presented fabricated information about his experience and used a great deal of creative license to report about his accomplishments, the company could immediately dismiss him and could further order an inquiry about him for misleading the organization. This would affect Smith’s career badly and he may face further problems for his future. Also, if the company gets to know that both Jack and Smith have been classmates and colleagues and Jack was aware of Smith’s past then problems may arise for Jack as well, the company may not dismiss him but it could create a trust deficit between him and the organization. It is highly imperative in the context of an organization that you maintain a level of trust for teamwork and support.

The recommended decision by the group for Jack

The group has recommended that Jack go to authorities and reveal falsification committed by Smith, in this way Jack would maintain the integrity of his organization and it would indicate that Jack is an honest, loyal and truthful person. This act by John would set an example within the organization that how an intern performs his duties professionally. Also, as a result of this revelation, Jack may get permanent employment in an organization which could lead to further progress. Although, Smith would face consequences which could affect his long run nothing is more important than the integrity and principles of an organization.

Consistency

Q1. Will the revelation by Jack not disturb him in a way that he undermined the position and career of his classmate who is his ex and present colleague?

“When I do good, I feel good; when I do bad, I feel bad.”(Abraham Lincoln). Although it will be a good act for the organization, overall it won’t be good for Smith’s career. Therefore, Jack may not feel good about this decision as he put the position of his mate at stake because the career of an individual also matters. Smith made a huge mistake by presenting fake information to the company still he should be given a chance to review his act else strict action may dent the morale of Smith and he could get extremely disheartened. So, it is the responsibility of Jack to work consistently by maintaining a balance between company and his colleague.

Awareness

Q2. Is Jack fully aware of Smith’s circumstances in a way that how important this internship is for Smith?

Being a colleague and former classmate, Jack should be fully aware of the circumstances of Smith that how much he is in need to carry out this internship. How he perceives in the long term. If Smith is dismissed from the company as an intern, how would it impact on the emotional health of Smith? For this purpose, Jack should take Smith in confidence and let him know that what he is going to follow company’s rules and regulation. The decision will affect Smith directly and indirectly. Therefore, in this regard Smith’s engagement is necessary. Jack has to consider human aspect in the case.

Rules and Principles

Q3 By taking the decision recommended by the team is Jack following company’s rules and principles

If Jack goes by the recommendation of the team, it will imply that he has followed company’s rules and regulation and he took a principled stance but a wise and prudent human being and professional takes into account all the aspects. Sometimes following rules and regulations can be more harmful to the others. Therefore, it is the responsibility of Jack to consider all aspects.

Equity

Q. Was the decision recommended by team fair and impartial?

The decision may not be impartial as it is directly affecting someone. Although, Smith is responsible for falsifying information, however, proper advice can change his behavior to an ethical approach. Directly reporting his deception to higher management may not serve the purpose in a good manner. It’ll first affect Smith’s career and secondly, it would damage the relationship between Smith and Jack. In this world, personal relation and a sense of consideration also matter.

Source

KPMG_EC_CASESTUDIES_Case02_HO.pdf

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