1. What environmental factors have helped to create the situation Jasper Hennings faces? What factors does Jasper need to consider when deciding on his course of action? Jasper Hennings, president of Rio Grande Supply Company, knew full well that a company’s top executives were largely responsible for determining a firm’s corporate culture. That’s why he took such personal pride in the culture of his Texas-based wholesale plumbing supply company. It didn’t just pay lip service to the values it espoused: integrity, honesty, and a respect for each individual employee. His management team set a good example by living those principles. At least that’s what he’d believed until the other day.

The importance Jasper attached to respecting each individual was apparent in the company’s Internet use policy. It was abundantly clear that employees weren’t to use Rio Grande’s computers for anything but businessrelated activities. However, Jasper himself had vetoed the inclusion of what was becoming a standard provision in such policies that management had the right to access and review anything employees created, stored, sent, or received on company equipment. He cut short any talk of installing software filters that would prevent abuse of the corporate computer system. Still, the company reserved the right to take disciplinary action, including possible termination, and to press criminal charges if an employee was found to have violated the policy