A recent audit uncovered a cherished employee and key Ulban team member submitted a false expense report for a dinner of 10 industry people when actually the dinner was for 10 of her staff. The financial team insists on her dismissal, citing expense report policy. She is a pillar of both your company and the community. Prior to this, she never had a wrong doing in her entire career. On one hand, applying the standards of the company requires her dismissal, losing her would mean a setback to the development of Ulban, but most importantly a serious blow to morale over the loss of a colleague.

In spite of policy, the employee's manager elects to give her he employee another chance and does not terminate her employment. The Manager is likely exercising:Rights Theory

or

Justice Theory

or

Virtue Theory