Ethical Dilemma

Hank Krendle, account manager for Craven Marketing, believes that Jason Krueger is a great candidate for promotion-Jason has consistently met the expectations set for his position, has initiated cost-saving procedures, and is a consummate team player.

Jason has met with Hank regularly to make certain that he's on target for advancement, and Hank has encouraged Jason that his productivity and ability to lead make him an excellent candidate. The team with which Jason currently works collaborates very well, and Hank believes that Jason has the skills to become a competent manager and to grow and develop within the company.

Just as Hank is set to make his recommendations to his boss to consider Jason for a newly opened account manager position, he becomes aware that Jason's team is next scheduled to work on the Maxim Factory account, which is one of Craven's largest clients.

Hank worked hard to earn that account for his section, and Jason and his team are the best people at Craven to get the work done efficiently. Hank knows that the people in his department are all capable, but Jason is really the stand-out, and certainly the only person who can manage this complex and high-profile project to the satisfaction of the management team at Maxim Factory.

If Hank recommends Jason for the account manager's position, it would leave his team without his invaluable talents. However, Hank has been promising Jason that he would fully back him for the next opening. If Hank holds off recommending Jason for this current opening, there may not be another for quite some time. Is it fair to overlook Jason for something he has worked so hard to get? That could really hurt Jason's career advancement. But, is it fair not to give Maxim the best possible attention? Maxim is one of Craven's largest and oldest clients.

Questions: Answers should be in the range of 600-750 words - in total.

1. Using consequential, rule-based, and character theories, evaluate Hank's options.

2. What should Hank do? Why?

Ethical Dilemma

Aaron Chomsky, Jr. has been CEO of Varnett Publishing for twenty-five years; his father, Aaron Sr., founded the company in 1921. In the last thirty years, Varnett has acquired many smaller publishing companies in an effort to dominate the whole of the Northeast publishing industry.

The small family company has grown into a publishing house that produces daily, weekly, and monthly news publications, as well as magazines and other print media for communities in New York, Connecticut, New Hampshire, and Vermont. Aaron Jr. took over as CEO during the high point in the life cycle of the news paper industry; that industry has, however, been in decline since 1998.

Aaron has just received word from the CFO that most of Varnett's acquisitions are failing individually, and that because of the decline in the market, Varnett will not be able to easily unload them. Consequently, Varnett is facing bankruptcy.

Varnett has many employees who have been with the company for more than thirty years, and many employees have family members also employed by Varnett. Aaron's father always promoted a sense of family within the company, even as Varnett grew well beyond a small town-single newspaper organization.

Aaron values his employees greatly, but if he alerts them to the severity of the situation, he knows that they will be compelled to search for employment elsewhere. If too many employees leave, however, Aaron knows that Varnett will not be able to produce the newspapers that are still operating. If Varnett stops producing newspapers, the company will absolutely fail and devastate shareholders. If Varnett absolutely fails, his employees will absolutely be out of work, and he will be able to offer them nothing.

Aaron feels great loyalty to his employees, but he also feels great loyalty to run Varnett in the most profitable way for his shareholders for as long as possible. He feels that he cannot protect one without sacrificing the other.

Time is passing quickly-if he doesn't commit to an action one way or the other, both will suffer equally. He must make a decision soon.

Questions: Answers should be in the range of 600-750 words - in total.

1. Using consequential, rule-based, and character theories, evaluate Aaron's options.

2. What should Aaron do? Why?