Case Study(2) for Company

Sam, 55 years old, tells a story that happened to him in Bangkok, capital of the Thai kingdom, when he was in his early forties. He says he had skills in seeing and exploring business opportunities at the commercial advertising company he works for. He has established a new division of the company that is concerned with implementing on-ground activation activities, and it implements marketing ideas to attract clients within shopping centres, supermarkets, or event halls and hotels.

Sam asked to amend his salary and give him a share of the profits resulting from the executed works. The Management has replied that there are not sufficient funds and that the company's financial situation does not allow for this. Even though he was the one who came up with contracts and executed them through his extensive network of relationships!

Two years passed and his situation has not changed, as the company gives him the same salaries and privileges that he had before signing the contract. He did not do what others would have done out of laxity in bringing in more contracts, but rather insisted that he was working to build his name and fame before any other consideration.

The moment he felt he had the strength to start his own company, he resigned, did not submit to the last-minute promotion offers and insisted on his decision.

And his revenge was sweeping, as he spoke to his clients that he intended to open his own company and that he wanted to transfer all business to the new company, so they welcomed the matter. Sam spoke to his 10-person team that he intends to open his own company and that he wants to continue working with them, with higher salaries and more earnings.

They never hesitated, so they submitted a collective resignation, the companys management could not bear its repercussions or persuade them to give up their decision.

The clients canceled their contracts with the old company and the same team moved to the new company. The old business owner discovered that the division that was established two years ago had doubled the company's profits and generated more than 65 percent of its income, and that the split that took place caused huge losses, but he realized that too late.

It seems from the previous stories that the lack of appreciation and transparency led them to problems, revenge, tension and psychological pressure. But it is never too late. The doors of hope open again with every constructive change that the employer and employee make. The employer and employees should fully perform their duties and resort to the law as a last resort to guarantee rights, but positivity, good behaviour and professionalism remain the foundations for success in the workplace.

Based on the above Case, you must answer the following questions

Question 1: In your opinion, what are the ethical issues in this situation? What were the pressures that led to the evolution of ethical issues? Justify your answer.

Question 2: In your opinion, describe the shortcomings of the ethical leadership in the company, justifying your answer.

Question 3: Do you think Sam's behaviour is right? Discuss the pros and cons of each decision Sam could make. Justify your answer!

Question 4: Describe the decision that the company should make. What are the potential implications of its choices? Are there legal ramifications for this type of behaviour? If so, what are the potential consequences? Justify your answer.

Question 5: Discuss how the conflict of interest situation affects other employees and the company? How can such situations be prevented? Justify your answer by providing creative solutions.