One-Cent Ethical Dilemma

Unit IV One-Cent Ethical Dilemma

Columbia Southern University

Unit IV One-Cent Ethical Dilemma

Question 1. What actions do you recommend Rajah take about his concerns with respect to the new one-cent-in-change policy?

Rajah should stop following this policy immediately. He should also tell his employees to stop withholding money from customers. The next move is to contact the corporate office and request to speak with HR department leadership in an attempt to review the company’s ethical behavior program guidelines. He should inform HR that he has an issue and seeks their guidance. He should inform them that his regional manager Lauren has put a policy in place that is in violation of the company’s ethical behavior guidance. Once corporate is up to speed on the situation, he should communicate his concerns of the potential for a vindictive supervisor and request clarification of the company’s whistle blower policy. HR should then procure a list of all stores managed by Lauren and contact them in an attempt to determine if these stores are also in violation. The HR department will then contact the regional manager Lauren and let her know Rajah’s store and all other stores under her supervision will not be complying with this policy anymore and that the corporate office has been made aware of the situation. They should also schedule an appointment for Lauren to come in and review company policies on ethical behaviors. At this point, Lauren may also receive verbal and/or written punishment for such a highly unethical decision.

Question 2. Explain whether you think Rajah should blow the whistle on his employer.

Rajah should most definitely blow the whistle here. Regardless of the monetary amount, intentionally withholding money from customers is in direct violation of company policy and against the law. Its Rajah’s job to ensure his store is in compliance, even when he has a boss that would disagree.

Question 3. What is your opinion of the ethics of the new policy about withholding one-cent-in-change?

The policy is clearly unethical. It doesn’t take much HR training to know that intentionally withholding money from customers is stealing. The fact that Lauren told employees to give the customers “their” penny upon request proves that she understands the penny does actually belong to them, and not the store.

Question 4. Is there a need for ethics training? If so, why?

It is clear that ethics training is needed here. Rajah allowed this policy to play out for a week. This proves that Rajah was unsure of company policy, even though he did feel bad about it, he was initially unsure of how to react to the policy. Furthermore, Lauren must undergo ethics training. She proved that she has no understanding of ethics when she put this policy in place. As a regional manager she is responsible for a large number of employees and should be educated in ethics so to ensure they are in compliance. In addition, ethics training will be required for all employees in the store, no one stepped up and voiced any issues with this policy. The store employers are in direct contact with customers and should be well trained in ethical behavior as it pertains to company policy. Additionally, all other stores under Lauren may also need training, depending on the outcome of the HR investigation to determine if they too were implementing this policy.

Question 5. How often should ethics training take place? Why?

Ethics training should take place whenever necessary. Training should take place upon hire of all new employees, after any change in policy, and periodically based on HR judgement. I would personally conduct ethics training quarterly in this particular scenario to account for potential high employee turnover and to ensure employees stay thoroughly versed in company policy. It’s very important that employees are familiar with ethical behavior policies in order to conduct themselves appropriately while on the job.

Question 6. By having ethics training, what can the employer and employees learn?

With ethics training, employees are able to learn expectations of corporate leadership. They can learn exactly what is expected of them and equip themselves with the tools required to ensure they don’t fail. Through interactive training, employers can learn what it’s like for employees with “boots on the ground”. Employees can help mold company policy in relation to actual encounters on the job. With this information, HR managers can combine law with gathered data and mend any potential issues in company policy. This continued effort to stay in touch with up-to-date customer relations can help HR managers ensure ethical behavior by employees and avoid implementation of blatant unethical policies, like this one, in the future.

References

DuBrin, A. J. (2015). Human Relations. Interpersonal Job-Oriented Skills. Twelfth Edition. Upper Saddle River, NJ. Pearson.