Exemplari, Inc. has a code of conduct that stresses loyalty, honesty, integrity and fairness, and a vision of excellence and ethics. Jose is the new CEO and he is quite happy to join a company that aspires to be excellent and ethical. Sadly, Jose quickly suspects that there may be ethical problems that are not being identified or corrected. So, he asks that everyone be on the alert for problems and he encourages everyone to report possible problems immediately to a supervisor. 

 

Henrietta is responsible for processing business expenses for one department. As she is processes reports she notices the following:

a) A manager has submitted a receipt for a two bedroom hotel suite for a recent business trip on which Henrietta knows that his elderly parents traveled with him. The manager stated that the hotel was booked up and only suites were available, so it cost nothing extra to host his parents. b) A manager approved an order for recycled paper. The extra cost for recycled paper was justified as being good for the environment. However, Henrietta knows that the recycled paper company belongs to the manager's brother-in-law and no bidding process was involved in choosing the supplier. c) Gene has scheduled the corporate jet to fly a youth group that she leads to a religious retreat, stating that supporting the local community is part of her job in PR.

1.) Which of these behaviors do you think is an ethical problem (explain why)? 

2.) Henrietta knows that similar behavior is wide spread and persistent, but she believes that the new CEO wants change. What should Henrietta do about the expenses that she thinks may violate the company code of conduct? 

3.) Why do these problems exist in a company that has a clear code of conduct and a vision of being excellent and ethical? 

4.) Referring to the textbook section on "Ethics Management Tools," please advise Jose on what he can do to bring Exemplari, Inc. closer to its vision of being excellent and ethical.