Dennis, the city manager of a financially strapped municipality, is working uncharacteristically late at night. The offices are empty and quiet. As he is leaving, he notices a sliver of light coming from the door of the new budget director, Susan. He decides to stop in and praise her for her excellent report in which she discovered errors that will save the city millions of dollars, projecting a budget surplus for the first time in years. As he approaches her office, he can see through the gap in the partially opened door that she is in a passionate embrace with Gary, the assistant city manager. The city's employment policy forbids dating between employees, threatening dismissal to those who do.

The city's code of ethics requires Dennis to enforce this policy, yet at the same time he does not want to lose either or both of his valuable employees. It would be difficult, if not impossible, to bring in someone else with their experience and credentials for the amount of money the city can afford to pay in salary.

Discussion Questions

1. What should Dennis do? Should he report Susan and Gary, in accordance with policy? Is it his ethical duty to do so?

2. Should he overlook the situation, believing the city will be best served in the long run? Is this a pragmatic utilitarian approach?

3. Should he speak to each of them and threaten to tell his elected bosses if they don't end the relationship? Would this cause other employees to pay more attention to the city's code of ethics?

4. Does Dennis have any right to interfere in a personal affair between two consenting adults?

5. Is this a management problem? An ethics problem? Both?

6. Can ethics problems be separated from management problems? Why or why not?