Todd must face the possibility his best managers may be stealing and putting the company at risk for tax liability action by the IRS. The company is Jennings Department Store and their code of ethics is vague, sparse, and lacks any contact information. Students should be aware that employee theft is a common example of unethical behaviour in the workplace. Why does Jennings' code of ethics not address this obvious industry threat? Using Table 8.1, Minimum Requirements for Ethics and
Compliance Programs, Jennings appears to fail on all seven counts contained in this table. Would a strong code of ethics have stopped this behaviour?
Both Zara and Jennings appear to be at fault in this instance. Jennings needs a better ethics program in place to address issues similar to the one Todd currently faces. However, employees have a moral obligation to both think and act ethically. Is Zara following this implied obligation? A corporate culture without values and appropriate communication about ethics can facilitate individual misconduct. Did Jennings communicate their ethical values to all employees? If so, why had no one uncovered Zara's behaviour earlier? Fostering ethical decision making within an organization requires terminating unethical employees and improving the firm's ethical standards. Do Zara's actions warrant termination? Would the company fire its highest sales earner? Is Zara a "bad apple"? Could it lead to a "bad barrel"?