Ethics Case Study Analysis Case Study: Some leeway for the small shoplifter? James, the store manager of Timaru's Techwise Electronics, was getting tired of all the petty theft. Part of his responsibilities included managing stock and loss prevention at Techwise Electronics. For each piece of stock unaccounted for, an investigation was started to track down the theft and most of the time it was the local teenagers walking off with a $10 DVD, but it was policy that even these cases be reported to the cops. Techwise recently hired a security person to man the front doors which had helped reduce theft, but DVDs were still going missing. Frustrated at this process, James took a deep breath before he launched into making his case for the policy changes that he was proposing to the company's shoplifting policy. He knew that convincing Sarah was going to be a hard sell. Sarah, the CEO, was also the daughter of the late Michael who was the founder of Techwise. Techwise started as a local family owned consumer electronics store. Michael was known for his strict moral code and commitment to the local community. Following in her father's footsteps, Sarah inherited not only the company, but also her father's strict moral code. "I think it's time to follow the lead of other stores," James began. He pointed out that most other retailers didn't bother calling the police and pressing charges unless the thief had shoplifted merchandise worth more than $50. In contrast, Techwise currently had the same zero tolerance policy towards theft that Michael had put in place when he started the business 30 years ago. James wanted to replace that policy with one that only prosecuted individuals over 18, who had stolen more than $50 worth of goods or who had a previous history of theft at Techwise. In the case of first-time culprits, those under 18 or petty thefts such as DVD's, James argued for letting them off with a strict warning regardless of the value of their ill-gotten goods and so only repeat offenders would be arrested. "Frankly the local police are getting pretty tired of having to come to our stores every time a teenager sticks a $10 DVD in his jacket pocket and besides, we just can't afford the cost associated with prosecuting everyone every time. Every time we press charges against a shoplifter, we are spending a couple of hundred to launch an investigation, engage a lawyer and pay employees overtime for their witness account in court." Techwise was already in a losing battle with a national retailer Big Electronics who just opened shop a few doors down with prices Techwise struggled to complete with. James knew that increasing prices to match the costs of its zero- tolerance policy to customers wasn't an option. There was a long pause after James finished his carefully prepared speech as Sarah thought about her recently deceased father who was both an astute businessman and a person for whom honesty was a key guiding principle. She knew that if he were sitting here today, he'd no doubt say, "Theft was theft!". In Michael's eyes, only caring about high value theft was pretty much the same as saying stealing was acceptable just as long as you don't steal too much. She looked at James. "You know we both have teenagers, is this really a message you want to send to your kids? You know as well as I do that there's nothing better than testing limits at that age, it's almost an invitation to see if you can beat the system." But then Sarah faltered as she found herself glancing at the latest financial figures on her desk, another in the string of quarterly losses. If Techwise went under, a lot of employees would be looking for other ways to make a living. In her heart, she believed in her father's high moral standards, but she had to ask herself just how moral could Techwise afford to be? Question | Name four stakeholders from the ethics case. Explain the consequences for each of the stakeholder if Sarah adopts James's proposed changes and shows more leniency to first-time offenders