Instructions for Ethical Decision$-$Making Discussion

When we talk about ethics, we are not talking legal and illegal but$-$rather about what people feel is acceptable behaviors in a specific environment. As leaders, you will sometimes be asked to make decisions about situations that fall into gray areas that laws do not cover. How you handle these decisions can have major impacts on your organization as well as your own status within the organization.

For this discussion, I would like for you to consider the following situation. You are the executive vice president of human resources for IBM. The company has a worldwide employee base of over $350,000$ people and you are responsible for developing and administering all HR programs and policies.

On a cold morning in the midst of a winter storm, schools were closed, and most people had decided to stay home from work. Nevertheless, Richard Smith had already showered, shaved, and dressed for the office. He kissed his wife Joan goodbye, but before he could get to his car, he fell dead on the garage floor of a sudden heart attack. Richard was $4$ months short of his $30-$year anniversary with the company. Having begun work at IBM at the age of $18,$ he was just $48$ years old.

Given that he was only $4$ months short of being eligible for full retirement benefits, do you award those benefits to Richard's wife and daughters? If the answer is yes, they will receive his full retirement benefits of $$4,000$a month and free lifetime medical coverage. If you say no$,$ his widow and two daughters will receive only $$340$a month. They will also have to pay $$475$ a month to continue their current medical coverage. As the executive in charge of the benefits at IBM, what would be the ethical thing for you to do$?$

For the discussion, please discuss what you as the executive in charge would do$.$ What steps would you take?

Remember this is a large organization and you have to be fair to all employees.

How would you communicate your decision?

Are there other parties you would consult?

What are the implications of your decision?

Could there be any unintended consequences?