Question
Lauren Smith is the controller for Sports Central, a chain of sporting goods stores. She has been asked to recommend a site for a new
Lauren Smith is the controller for Sports Central, a chain of sporting goods stores. She has been asked to recommend a site for a new store. Lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. Lauren also contacted several other shopping plazas and malls, but her uncles store turned out to be the most economical place to lease. Therefore, Lauren recommended locating the new store in her uncles shopping plaza. In making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. Did Lauren act in an ethical manner? Why or why not? Explain. What ethical issues can you identify in this situation? If you were in Lauren's position, what would you have done differently and why?
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