Case study Susan Chumley has worked at Suspenders Ltd for six months and has been appointed a...

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General Management

Case study
Susan Chumley has worked at Suspenders Ltd for six months andhas been appointed a team leader. In the time she has been there,out of the eight members of her team who were there when she joinedthree have left and one is on long-term sick after having abreakdown. She has to attend meetings of other team leaders andsupervisors. At one of the meetings she was told that certainsuppliers were to be given ‘special payments’ providing certaindelivery and quality targets were met. These were to be paiddirectly to named individuals and arrangements would be made to paythem in cash. In the records these were to be described as‘advisory fees’. Susan and her colleagues were told only to dealwith these named individuals and no one else.
After work her friend Maureen asked Susan if she would like someelectrical goods that had been ‘damaged’ in the stores. Maureenrevealed that stores staff regularly siphoned off consumerelectrical goods and sold them cheaply to staff – suppliers simplyreplaced any damaged goods and didn’t ask for them to be returnedso this practice was simple and effective. Maureen had bought a42-inch plasma television for £100 from one of the stores staff.Susan declined.
At home Susan’s daughter asked her if she could have some paperand pens for school. Susan said she would bring home a packet ofpaper and a box of pens the next day from the stationery store.Next day Susan finished her work, messaged a friend in Cyprus onFacebook and bought some new outfits for work from some onlineshopping websites. She then went home, remembering to take with herthe pens and paper her daughter wanted.
Discussion Questions
Marks
How has the behavior of the staff been influenced by theethical behavior of the company?
What are the ethical issues in Susan’s behavior? Is herbehavior acceptable or excusable in any way?
How should management deal with incidences of such behavior bystaff?
What processes and procedures could be put in place to reduceincidences of this type of behavior by staff and what shouldmanagement do to make them effective
3
3
2
1
Presentation, clarity and layout of the submittedassignment
1
Total Marks
10

Answer & Explanation Solved by verified expert

4.2 Ratings (782 Votes)

1 Clearly the staff has been behaving unethically and has been influenced by unethical behaviour from management The management decision to pay supplier special payments when the payments are already contracted under purchase order for timely delivery and quality requirements is clearly unethical Also classifying such payments as advisory fees amount to financial fraud Therefore unethical See Answer

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Case study Susan Chumley has worked at Suspenders Ltd for six months andhas been appointed a team leader. In the time she has been there,out of the eight members of her team who were there when she joinedthree have left and one is on long-term sick after having abreakdown. She has to attend meetings of other team leaders andsupervisors. At one of the meetings she was told that certainsuppliers were to be given ‘special payments’ providing certaindelivery and quality targets were met. These were to be paiddirectly to named individuals and arrangements would be made to paythem in cash. In the records these were to be described as‘advisory fees’. Susan and her colleagues were told only to dealwith these named individuals and no one else. After work her friend Maureen asked Susan if she would like someelectrical goods that had been ‘damaged’ in the stores. Maureenrevealed that stores staff regularly siphoned off consumerelectrical goods and sold them cheaply to staff – suppliers simplyreplaced any damaged goods and didn’t ask for them to be returnedso this practice was simple and effective. Maureen had bought a42-inch plasma television for £100 from one of the stores staff.Susan declined. At home Susan’s daughter asked her if she could have some paperand pens for school. Susan said she would bring home a packet ofpaper and a box of pens the next day from the stationery store.Next day Susan finished her work, messaged a friend in Cyprus onFacebook and bought some new outfits for work from some onlineshopping websites. She then went home, remembering to take with herthe pens and paper her daughter wanted.
Discussion Questions	Marks
How has the behavior of the staff been influenced by theethical behavior of the company? What are the ethical issues in Susan’s behavior? Is herbehavior acceptable or excusable in any way? How should management deal with incidences of such behavior bystaff? What processes and procedures could be put in place to reduceincidences of this type of behavior by staff and what shouldmanagement do to make them effective	3 3 2 1
Presentation, clarity and layout of the submittedassignment	1
Total Marks	10