ETHICAL DILEMMAPersonal Values and Ethics in the Workplace

sipho Dlamini was born in a small rural village in Swaziland. He spent his childhood years looking after his family’s
livestock. The community upheld high values, such as honesty and respect, but the people were desperately poor. He
realized that he would have to go to South Africa and apply for a job at a gold mine. As a young man Sipho left his village
in the mountains and took on the difficult job of getting to South Africa. He went in search of one of his distant family
members who was working for a gold mine near Johannesburg. He managed to find his relative, who was engaged as a
personnel assistant. Sipho’s relative managed to find him a job as a general mine worker and accommodation in one of
the mine hostels. Sipho was dedicated to his work, and time passed quickly. Every month, he forwarded most of his
wages to his familyin Swaziland. One day Sipho’s family member called Sipho into his office and informed him that he
was due for promotion. He also told Sipho that he would be required to pay him R500.00 (about $60) for his “efforts.”
This arrangement seemed strange to Sipho since he knew that it was not in line with company procedures. When Sipho
asked about this, the personnel assistantreplied that he had the authority to do so and that Sipho would not be
promoted should he not pay the R500.00. Sipho returned to his room and battled in his mind that night with the options
before him. He had grown up with strong personal values that included honesty and hard work, but his family needed
the extra income. What was he to do? After a restless night, he returned the next day to the personnel assistant’s office
and handed him the R500.00. He was immediately promoted and returned to his room with a troubled mind. A few
weeks later, the personnel assistant was reported and investigated for fraudulent behavior. He was suspended from
work, and the investigation revealed all his corrupt activities. The record he had kept on allemployees who paid bribes to
him was also found. All employees on this list were called in and charged with fraud. Sipho’s name was on the list, and he
was found guilty and dismissed from the service of the company, along with all the others.

1. 5-11. What should Sipho have done differently?

• Refuse to pay the R500.00 and report the incident to higher management.
• Report the personnel assistant's request to the company's ethics hotline.
• Seek advice from a supervisor or use the company's ethics guidelines for guidance.
• Document the incident for transparency and evidence.
• Discuss the issue with colleagues to gather support against the personnel assistant.
• Consult the company's code of conduct for guidance.
• Consider external ethics organizations or legal authorities if the pressure persists.

2. 5-12. In what way could the mine management have provided support to him prior to his wrongful act?

Conduct regular ethics training sessions.

Establish a confidential reporting system or ethics hotline.

Promote a culture of openness and transparency.

Emphasize a zero-tolerance policy for bribery and corruption.

Regularly review and reinforce the company's code of conduct.

3. 5-13. How would you have acted had you been in a similar situation?

Refuse to pay, report to higher management, or use an ethics hotline.

Document the incident for evidence.

Seek advice from colleagues, supervisors, or the company's code of conduct.

Consider external ethics organizations or legal authorities if needed.

CASE INCIDENT“ON THE COSTS OF BEING NICE”

Agreeable people tend to be kinder and more accommodating in social situations, which you might think could add to
their success in life. However, one downside to agreeableness is potentially lower earnings. Research has shown the
answer to this and other puzzles; some of them may surprise you.First, and perhaps most obvious, agreeable individuals
are less adept at a type of negotiation called distributive bargaining. Distributive bargaining is less about creating win-win
solutions and more about claiming as large a share of the pie as possible. Because salary negotiations are generally
distributive, agreeable individuals often negotiate lower salaries for themselves than they might otherwise get.Second,
agreeable individuals may choose to work in industries or occupations that earn lower salaries, such as “caring”
industries of education and health care. Agreeable individuals are also attracted to jobs both in the public sector and in
non-profit organisations. Third, the earnings of agreeable individuals also may be reduced by their lower drive to emerge
as leaders and by their tendency to engage in lower degrees of proactive task behaviours, such as thinking of ways to
increase organisational effectiveness.While being agreeable certainly doesn’t appear to help your pay-check, it does
provide other benefits. Agreeable individuals are better liked at work, more likely to help others at work and generally
happier at work and in life.Nice guys and gals may finish last in terms of earnings, but wages do not define a happy life
and, on that front, agreeable individuals have the advantage.Instructions: Begin the case by a one to two-sentence
summary of what the case is about. Follow this by answering the questions with your critical thinking hats on. All
responses have to be supported/explained, as you would be forced to do orally in class.

5-14. Do you think employers must choose between agreeable employees and top performers? Why or why not?

5-15. Research seems to suggest that agreeable individuals make fairly poor managers and decision makers. Why might
this be the case? What are the implications for organizations? How does this affect their earning potential?

5-16. Agreeable individuals tend to be attracted to specific types of occupations and follow different career paths. What
has research indicated in this respect? What are the implications and where are you more likely to find agreeable
employees?

5-14. Employers don't have to choose; a balanced team can include both agreeable employees and top performers for a
diverse work environment.

5-15. Agreeable individuals may struggle in managerial roles due to conflict avoidance, potentially impacting
organizational effectiveness. This could affect their earning potential negatively.

5-16. Agreeable individuals are attracted to lower-paying industries like education and health care, preferring roles
emphasizing cooperation. They are commonly found in caregiving and service-oriented occupations.

Chap:06
ETHICAL DILEMMA Max’s Burger:

The Dollar Value of Ethics In July 2011, Nassar Group, a well-diversified conglomerate- ate operating in Dubai,
boughtthe rights to manage Max’s Burger’s network of franchised outlets in Dubai. Max’s Burger isan emerging American
fast-food chain with fran- chised outlets across the globe. The movewas a personal project of Houssam Nassar,
the Group’s managing director and abusinessman with an excellent reputation. Dubai’s fast-food market is
overwhelmed with franchised restaurants. Meat quality at Max’sBurger, however, was lower than the standards set by
franchisors. This was all about tochange, because Nassar did not intend to jeopardize his reputation and image.
Accordingly,as the new operator of Max’s Burger outlets, he issued a directive instructing the warehousemanager to
decline any frozen meat shipment that did not comply with the franchisor’s setstandards. A few weeks after Nassar
Group took over the management of Max’s Burger, a frozen meatshipment was delivered to the Max’s Burger
main warehouse. Upon measuring thetemperature of the meat, the warehouse manager found that it was a few
degrees outsideacceptable limits. In terms of governmental regulations, a couple of degrees’ difference intemperature
would present no risk to customers’ health; however, such a difference couldhave a minimal effect on the taste and
texture of the meat. Prior to the change of management, and for many years before, the warehouse managerhad no
second thoughts about accepting such a shipment: no food poisoning claim was everfiled against Max’s Burger, and taste
inconsistencies never bothered anyone enough tocomplain. Further, the company supplying the meat to Max’s Burger is
owned by a relativeof the warehouse manager. With the new directive in place, however, the ware- house manager was
unsure about hisdecision. Even though he knew that Nassar would have no way of finding out that thereceived meat was
noncompliant, he wasn’t as sure about his decision this time around.

6-11. Does the decision to accept or refuse the frozen meat shipment call for ethical or legal considerations? Why?

The decision involves both ethical and legal considerations. Ethically, there is a commitment to maintaining quality and
adhering to standards. Legally, the manager must consider governmental regulations regarding food safety.

6-12. Identify the stakeholders who will be influenced by the decision to accept or refuse the frozen meat shipment.

Stakeholders include customers who consume the meat, Max’s Burger as a brand, Nassar Group's reputation, the
warehouse manager, the meat supplier (owned by a relative of the warehouse manager), and regulatory authorities
ensuring food safety.

6-13. What type of decision-making framework would you advise the warehouse manager to adopt in order to help him
reach an optimal decision? How will your suggestion help?

I would advise the warehouse manager to use an ethical decision-making framework. One option is the Utilitarian
approach, weighing the consequences for all stakeholders. This approach considers the overall happiness and well-being
of all involved parties. It helps the manager assess the impact on customers, the company's reputation, and regulatory
compliance, guiding him toward a decision that maximizes overall benefit and minimizes harm.

CASE INCIDENT 1 Too Much of a Good Thing Have you created an e-portfolio for job applications? If you attend the
University of Massachusetts, the University of South Florida, Stanford, Marquette, or Westminster Col- lege, where e-
portfolios are expected, you probably have developed one. E-portfolios-digitized dossiers of presen- tations, projects,
writing samples, and other work-are used by over 50 percent of students looking for jobs or internships. Putting together
an e-portfolio is "a learning experience, linked to a career opportunity," said Associate Professor Tim Shea, who oversees
a business school's man- datory e-portfolio program. Proponents contend that e-portfolios don't replace résu- més, they
enhance them. "You can write on a résumé that you did an internship somewhere, but if I can see the proj- ects that you
worked on, it gives me a more rounded view of the candidate," said Greg Haller, president of the western U.S. region for
Verizon Wireless. Student Inga Zakradze agrees, saying the e-portfolio gives "a better feel for me as a well-rounded
student." And in a recent Association of American Colleges and Universities survey, 83 percent of respondents believed
an e-portfolio would be useful. With all this affirmation, you might think an e-portfolio is critical to obtaining a job, but
that would be a misper- ception. Other than Haller, opinions seem divided: schools like students to make e-portfolios,
but employers don't want them. One of the reasons is technological-HR screening software doesn't allow for links to
websites where e-portfolios would be stored. Portfolio hubs Pathbrite and the Portfolium have tried to get around this
problem, but they have yet to obtain a single corporate contract. Another reason is information overload-managers don't
have time to read through, say, your travel log from a semester at sea. Third, many companies don't believe e-portfolios
are val- ue-added. "They are typically not a factor in our screening process," said Enterprise talent acquisition VP Marie
Artim. Stuart Silverman, a university dean, acknowledged the pos- sibility. "Whether or not the prospective employer
looked at it, or weighed it, who knows." Proponents of e-portfolios, primarily from the education sector, believe there is
value in them beyond job seeking. Kerri Shaffer Carter, a university director of e-portfolios, says, "We don't draw a sharp
distinction between the portfolio as a learning process and the portfolio as an employment tool, since the self-awareness
that comes out of that process ulti- mately prepares the student for the workplace." Just don't expect all that hard work
to land you a job. Questions 6-14. How might the misperception about the impor- tance of having an e-portfolio have
begun? 6-15. What are the reasons you would decide to use an e-portfolio? 6-16. What do you think would be the best
way to deliver an e-portfolio to a prospective employer?

6-14. How might the misperception about the importance of having an e-portfolio have begun?

The misperception may have started due to the positive feedback from educators and the belief that e-portfolios
enhance a candidate's profile. However, the disconnect between schools promoting e-portfolios and employers not
valuing them may have contributed to the misperception.

6-15. What are the reasons you would decide to use an e-portfolio?

Reasons to use an e-portfolio might include showcasing a diverse range of projects and work, providing a more
comprehensive view of your skills and experiences, and demonstrating your ability to apply knowledge in real-world
situations. It can also serve as a tool for self-reflection and personal development.

6-16. What do you think would be the best way to deliver an e-portfolio to a prospective employer?

The best way to deliver an e-portfolio to a prospective employer would be to integrate it seamlessly into the application
process. This could involve providing a link in the resume or cover letter, using platforms that are easily accessible, and
ensuring compatibility with HR screening software. Additionally, highlighting specific relevant projects rather than
overwhelming the employer with excessive information could enhance its effectiveness.

Case Study: The Youngest Billionaire

Picture this. The billionaire owner and founder stands in the conference room trying on bras while the CEO stands behind
her, adjusting the straps. The floor is littered with underwear. The owner takes off one bra and puts on another. Five
executives in the conference room barely blink.

Welcome to Sara Blakely’s company, Spanx. In just a few years, Spanx has become to slimming underwear what Jello is to
gelatine and Kleenex is to facial tissue: so dominant is the brand that its name is synonymous with the category.

At 42, Blakely isn’t the youngest billionaire in the world. However, she is the youngest female self-made billionaire. Like
many stories of entrepreneurial success, hers is part gritty determination, part inspiration and part circumstance. The grit
was easy to see early on. As a child growing up in Clearwater Beach, Florida, she lured friends into doing her chores by
setting up a competition. At 16, Blakely was so intent on success that she listened to self-help guru Wayne Dyer’s
recordings incessantly. Friends refused to ride in her car. ‘No! She’s going to make us listen to that motivational crap!’
Blakely recalls they said.

After twice failing to get into law school, Blakely started her first business in 1990, running a kids’ club at the Clearwater
Beach Hilton. It worked until the Hilton’s general manager found out. Later, while working full-time in sales, Blakely
began learning how to start a business. Her inspiration for Spanx came while she was cold calling customers as a sales
manager for an office supply company. She hated pantyhose. ‘It’s Florida, it’s hot, I’m carrying copy machines,’ she
noted.

At a local library, Blakely researched every pantyhose patent ever filed. She wrote her patent application by following a
textbook she read in Barnes & Noble. Then she worked on marketing, manufacturing and financing, treating each as its
own project. After numerous rejections, she finally found mill owners in North Carolina willing to finance the
manufacturing. ‘At the end of the day, the guy ended up just wanting to help me,’ Blakely said. ‘He didn’t even believe in
the idea.’

For a time, Blakely relied on stores such as Neiman Marcus, who allowed her to sell her products from a table in their
foyer, and on word-of-mouth to get the news out to the public. Her big break came when she sent samples to Oprah
Winfrey’s stylist. Harpo Productions called to say that Winfrey would name Spanx her favourite product of the year and
warned Blakely to get her website ready. She didn’t have a website.

Billions of dollars in sales later, Blakely has no plans to slow down. Spanx is sold in 54 countries, and Blakely wants to
double international sales in three years. She says: ‘The biggest risk in life is not risking. Every risk you take in life is in
direct proportion to the reward. If I’m afraid of something, it’s the next thing I have to go do. That’s just the way I’ve
been.’

6-17. How much of Blakely’s success is due to her personality and effort and how much to serendipity (being in the right
place at the right time)? Does attribution theory help you answer this question? Why or why not?

6-18. What evidence is there in the case to suggest that Blakeley is not risk-averse?

6-19. Use the three-stage model of creativity to analyze Blakely’s decision making. What can you learn

from her story that might help you be more creative in the future?

6-17. Blakely's success is a result of her personality traits (determination, entrepreneurial spirit), effort, and some
serendipity (Oprah's endorsement). Attribution theory helps analyze how observers attribute success to internal or
external factors, highlighting the interplay of personality, effort, and luck.

6-18. Evidence of Blakely not being risk-averse includes her starting a business after law school rejections, persistent
learning in sales, creating Spanx, securing manufacturing financing, and using unconventional methods for promotion.

6-19. Blakely's decision-making aligns with the three-stage model of creativity: preparation, incubation, and insight. To
be more creative, one can learn from her story by embracing diverse experiences, persistence, and viewing challenges as
separate projects requiring creative solutions.