Code of Ethics by Engaging in Business

November 10, 2022

*Scenario: Is This Ethical*

You Decide – In this scenario, you will evaluate the Code of Ethics to determine if John Anderson has

violated International Widgets' Code of Ethics by engaging in business with a competitor.

You Role – The human resources department worked with management to carefully craft a Code of

Ethics. All employees received a copy of the code and were required to sign off stating that they had

read the code and agreed to abide by its conditions. If an issue concerning an employee occurs, the

human resources department investigates. As the assistant director of human resources, you are asked

to evaluate an employee's behavior. You meet with Gloria Smithson to obtain all information needed to

begin your investigation.

Key Players:

Gloria Smithson – Gloria has now been in business for 2 years. Her business is called International

Widgets, and she employs more than 300 people in the business headquarters. In the early stages of the

business, she created a Code of Ethics to govern employees' behavior. Recently, one of her salespeople,

John Anderson, seems to be under performing. Historically, he has been a stellar employee and

salesperson, bringing in new clients every month. However, over the last 6 months, not only has he not

brought in any new business, but 30% of his accounts have gone to a competitor. Even with this

downturn, John was on the road 5 days a week and continued to submit expense reports. Is this ethical?

Janice Marshall – Janice is the director of human resources at International Widgets. Recently, Janice

met with Gloria to let her know of a rumor in the company that John was actually steering some of his

accounts to a competitor because the competitor gave him a kickback.

John Anderson – John has been employed by International Widgets for 14 months. He likes his job but

was recently approached by a competitor with an offer he could not refuse. The competitor wanted to

expand his domestic market and asked John to work with him for a few months. He asked that John

provide him with the names and phone numbers of the customers he services.

He said he didn't want

John to get into trouble with International Widgets so he would contact the customers and not John.

However, he told John that for every customer who left International Widgets, John would receive a "1%

payment from the customer's first order." John didn't think he was doing anything wrong. He has two

children in college and needs the extra money, plus he could continue to try to work with the customer

to stay with International Widgets.*Scenario: Is This Ethical*