Superior Suites Hotel ("SSH") operates a regional hotel chain. Each hotel
has a manager and an assistant manager who is also the accountant. As is common
in this industry, employee turnover is high. This hotel is located in Montreal.
The assistant manager, Ranbir, asked the hotel's bookkeeper, Harpreet, to
prepare a budget for the upcoming year. The budget is prepared annually and
must be sent to SSH's head office for approval by the Vice-president of Finance.
The budget is then used as a basis to evaluate the manager and determine bonuses.
When the budget was almost complete, The hotel manager instructed Ranbir to
increase the budget for wages & salaries by 15%. When Ranbir asked why, he was
told "because we have always done it this way."
REQUIRED:
1. What was Ranbir's ethical dilemma?
2. Are the actions of the manager ethical? Explain your answer.