Fuzzy Math Case Analysis
Problem Definition Upon starting a new job as Manager of Planning and Reporting at ConnectCo, an outbound call center in Toronto, Canada, Joe Davis noticed that ConnectCo owed $81,328. 57 to their client Symbol for open call center seats. When mentioning this problem to the vice-president Charlie Gallagher, he did not receive clear answers. After several weeks and plenty of fruitless attempts to solve the issue with Gallagher and MacDonald (VP and Relationship Manager), Davis started to realize that there might be a culture of corruption in the company. Diagnosis There is no ethical code in place at ConnectCo.
Gallagher and MacDonald do not seem concerned with the accounting disparities brought up by Davis. Furthermore, when Davis took the issue to the controller of ConnectCo, she told him to let the case “play out. ” (Kyei-Poku, 2008, pp. 9) Either the managers at ConnectCo do not fully understand the consequences of breaking the terms of a contract, or are trying to deceive their client. Also, there is a communication problem within the managers at ConnectCo. The departments are not in agreement on how to handle important issues and managers do not know all the details of the contract with Symbol.
Finally, ConnectCo and Symbol do not share a clear understanding of the contract’s terms. The contract terms are vague, which allows each party to interpret the terms to their advantage. Action Plan When employees perceive the company they work for as transparent and just towards its clients, employees and society alike, they feel it is worthwhile to dedicate themselves to their jobs (Tatum & Eberlin, 2007). From Davis’ perspective, ConnectCo is not living up to these standards. The company must review their ethical values in order to regain their employees’ trust.
Short Term ConnectCo must include a code of ethics into its strategic plan. In a presentation in 2006, Robert Finocchio, Dean’s Executive Professor at Santa Clara University, enumerated the advantages of an ethics code and suggested how to implement it (Schulman, 2006). According to his ideas, ConnectCo should not rely on outside pressure from, auditors, officers or the police to behave ethically. The change should be internal and include members from all levels of the organization. ConnectCo should focus on principles rather than rules and reward employees for being ethical.
ConnectCo must create an independent team to implement and supervise the conduct of the ethical code. This department should report directly to the board of directors. To solve the specific problem with Symbol, Davis should make sure that Gallagher and MacDonald are fully aware of the consequences of accounting fraud (bad press, lawsuits, jail). He should demand clear answers and let them know he is willing to bring this situation to the president. According to Finocchio, “Individual ethical responsibility and accountability are never trumped by some corporate or organizational imperative.
There is no ‘my company said it was ok’ defense. ” (Schulman, 2006). Therefore, following the managers’ lead puts Davis in danger of being charged as an accomplice of accounting fraud. Long Term The ethics department at ConnectCo will deal with all issues concerning ethical business conduct. They will provide ethics training to all employees as part of the strategic implementation of the ethics code. In training, employees will learn about the company’s values, find out how to proceed when dealing with an ethical problem, and be alerted of the consequences of not following the rules of conduct.
Following the example of Boeing, ConnectCo should have a team of ethics advisors available via a telephone hotline to answer employees’ questions and concern about ethics issues (“Boeing: Ethics”). ConnectCo should build an incentive system to encourage the disclosure of internal ethical fraud by awarding bonuses to employees who report a verified crime. The success of this operation lies in the creation of an anonymous reporting platform that employees can feel comfortable using without worrying if they are going to suffer retaliation.
ConnectCo should send an annual integrity report both internally to its employees and externally to its clients (“Integrity milestones,” 2008). By releasing this report, ConnectCo would create a more transparent working environment and brand itself as a reliable company, thus regaining the trust of its clients and employees. Risks For Joe Davis and the Symbol problem, taking the issue to the president could result in a number of risks. First, he could realize that the president is complacent with the corruption scheme.
In that case, the president would tell MacDonald that Davis reported the problem to him, which could result in retaliation. Second, Davis’ decision to bypass the chain of communication might be frowned upon, as he would not be respecting his boss’ authority. For ConnectCo, carrying out the ethical code and its supporting system might result in a higher turnover rate. Several unethical managers might feel their fraudulent behavior would be disclosed and their authority would be challenged. References Boeing: ethics and business conduct home. (n. d. ). Retrieved from http://www. boeing. om/companyoffices/aboutus/ethics/ Integrity Milestones at the World Bank (2008). Retrieved from http://go. worldbank. org/P4OPGLORD0 Kyei-Poku, I. (2008). Fuzzy math. Richard Ivey School of Business: The University of Ontario Schulman, M. (2006). Incorporating Ethics into the Organization’s Strategic Plan. Retrieved from http://www. scu. edu/ethics/practicing/focusareas/business/strategic-plan. html Tatum, B. C. , & Eberlin, R. J. (2007). Leadership, ethics, and justice in strategic decision making. Business Strategy Series, 8(4), 303). Retrieved from https://login. libraryproxy. quinnipiac. edu/
