Case Scenario #1

You are the Executive Director of Literacy First, a non-profit organization whose mission is to improve childhood literacy. On Friday afternoon, your Human Resources Director and Finance Manager stop by your office to share some news. They report they have discovered that Jesse Jones, an employee who recently resigned from Literacy First, made personal purchases using the company credit card. Jones was a school outreach coordinator, whose job included hosting meetings and events at local schools to promote Literacy First's programs. Jones would regularly purchase food and products to give away during the meetings using a company credit card.

Jones, like most of Literacy First's employees, began working at home during the COVID pandemic and transitioned to hosting meetings and events virtually. The HR Director explained that while employees were working remotely, they were permitting to have supplies shipped to their house instead of to the office. Jones continued to spend money on food and products while working from home, even though Jones was hosting virtual events, in an amount similar to what was spent during the time Jones was hosting live events. Jones' supervisor did not question why Jones continued to incur these charges and did not follow up to confirm that Jones has provided original receipts or explanations and justifications for charges on the company purchasing card, as required by company policy.

The weeks after Jones left work at Literacy First, the Finance Manager was auditing the credit charges and raised concerns about the charges on Jones' credit card. A preliminary investigation showed that Jones was orderings food for themselves and their family to eat and charging the expense to Literacy First's credit card. There were also charges for apparel on the card that could not be traced to any giveaway or event. In total, the Finance Manager estimated Jones may have charged $2,376.42 in personal charges to the Literacy First credit card during Jones' last six months of employment.

Frustrated with this development, you immediately start thinking about your options. You can't fire Jones. Jones has already quit. You consider the facts and what you learned in your business law class.