Damage Expense Topic: Violations of Internal Control Characters: Chris, New Distribution Supervisor at a large candy manufacturer...

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General Management

Damage Expense Topic:

Violations of Internal Control Characters: Chris, New DistributionSupervisor at a large candy manufacturer Bob, Inventory ControlManager, Chris’s immediate boss Chris has been recently hired asthe Distribution Supervisor for an international candy company. Theplant is in a rural area and is about to begin a major expansionthat will triple its capacity. The company has generous benefitsand has paid all moving expenses for Chris and his family. Duringthe move, however, the movers damaged a large piece of oakfurniture. Chris has contacted the moving company. The insurance isby the pound and would cover only a small part of the worth of theitem. Chris has explained this to the moving company, but itrefuses to reimburse him for the item’s value. Chris approaches hissupervisor, Bob, about the problem. Chris has been on the job abouta month and enjoys the partnership they have developed to date.Chris had originally interviewed with Bob, and Bob’s recommendationhad been a major factor in Chris’s getting the job. Chris has foundthe types of challenges he was looking for in a new position and isalready becoming a major player in planning for the new expansion.Bob tells Chris that he does not think he can do anything topersuade the moving company to reimburse Chris and suggests thatChris pad his next few expense reports to cover the cost. Chris issurprised at Bob’s suggestion, because thus far Bob has dealt withhim in a very evenhanded manner and has appeared to have strongbusiness ethical standards.

Author: Originally developed by Michael Forget, graduate student atWashington University, as a class project in “Ethical DecisionMaking.” Edited and submitted by Dr. Raymond L. Hilgert, Professorof Management and Industrial Relations, Washington

These are some alternatives that Chris could take

Bad decision options:

1. Chris can go along with Bob's suggestion as he is going to beworking along with Bob in the new company.

2. Chris can keep quite about the problem as he does not feel thatanything can come out of arguing.

What are the pro and con of these alternative that chris could takeand what are the best option that he can take with mention the proand con for it?

Answer & Explanation Solved by verified expert
3.7 Ratings (332 Votes)
Alternative 1 Chris can go along with Bobs suggestion as he is going to be working along with Bob in the new company Pros Chris can cover the cost of his loss Chris can build better rapport with Bob by    See Answer
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