Group Members o Silivio Tawake (TL) o Vereimi V Balenacagi o Vivian Nainoca o Sailosi Sawana o Nemani Taganeqaqa o Tulia Savou

o Losevati Lorosio

CASE STUDY BRIEF

Brief of Case Study Everyone Does It (pg 448) Sarah recently joined Universal Beverages as VP HR for a $1,000,000 Salary based on her ability to perform which she believed she could do Sarah was introduced to businessmen and politicians Introduced to Chairman of Oz Co one of the major suppliers to the company Encountered conversations that suggested that receiving gifts is standard business practice Sarah became confused at the ethics of the situation and the conversations

INTRODUCTION
What is ETHICS?

Question of morality, Right and Wrong Code of ethics? - Attempt to create voluntary/willing compliance to ethics - Employee desire and decision Code of Conduct? - Is an organizations expectation for members towards acceptable behaviors

Q1. WHAT ARE SOME ETHICAL ISSUES RAISED BY THE CASE STUDY?
1. Inappropriate Behaviour(Touch and Steering) Inappropriate conduct of touch and maneuvering Sarah being paraded among men Venue of first introduction Action aimed towards only a certain (influential) group esp. MD of Oz Ltd Other execs speaking in support of receiving benfits

ETHICAL ISSUES(Contd)
2. Receipt of Benefits Offering of gifts (benefits) for favours Receiving and giving gifts is good customer services Conducted openly, Executives are involved Integrity issues (declaration of gifts) Generally accepted behavior which makes it right Family members involved Financial Risk Exposure Car Loans

Ethical issues (contd)

3. Basis of senior executive pay
Could be an issue if employees are not paid well Remuneration being a benefit should be fairly

distributed Salary caps issues and regulating bodies eg. Higher Salaries Commission (Fiji)

Q2P1- Who are the major stakeholders involved? (vested interests)

1. Internal Stakeholders a. Executive Management of Universal Beverages - Brodzinkski- The New Vice President of Human Resources (Universal Beverages) - Craig Sherington - The Chairman (Sarah's Boss) b. Employees of Universal Beverages

STAKEHOLDERS
2. External Stakeholders a. Management of Oz Industries - Richard Goodman Chairman of Oz Industries & De-facto Benefits Manager b. Customers c. Government and Politicians 3. Owners - Shareholders of Oz and Universal Co

Examples of Stakeholders Interests

Q2. Part 2- Explain what you think their views might be and why?
1. Internal Stakeholders (Executives) ''Everyone does it.'' That it is a standard practice in their industry. That there is nothing wrong with the practice. They see it as a normal practice Amongst other examples, her boss gave her the example of their countrys PM accepting use of utility truck from a used car firm Employees Views Unfair Practice because only the senior execs receiving all benefits and not them

Q2P2 contd
2. Externals They think it is standard practice because its part of their customer service Good for business, therefore it must be right 3. Owners Universal Co consider MD Oz as their Benefits Manager. They are recipients of benefits provided by OZ their supplier. Gifts strengthens business relationships

Q3: If you were Sarah, what would you do?

a. Initially, Nothing b. However, she will need to think through the ethical issues and make the decision whether she wants to be involved or not c. She could take the offer or decline

Q4:How would Sarah's acceptance sit with the AHRI Code of ethics?
AHRI- The Australian Human Resources Institute

(AHRI) is a national association in Australia representing human resource and people management professionals. code of ethics and professional conduct where members are bound by the standards of the code and include it as their working habits.

AHRI Code of Ethics & Professional Conduct

1. 2. 3. 4. 5. 6. 7. 8. 9.

Advancing the profession Leadership Honesty. Integrity Lawfulness Confidentiality Justice Competence Organisational capability

Q4 Contd
Effect of Sarahs accepting of such benefits:
possible breach of the AHRI professional code of ethics

(Integrity and Honesty) Could lead to sanctions or disciplinary actions Sarahs acceptance of benefits may be critical to her contributions to issues related to Oz Industry affect her professional conduct towards any matters that may relate to Oz Industry. Questions her independence in making business decisions. Compromise her position

Q4 Contd
Integrity personal integrity and trustworthiness is

undermined Best interests of Company not paramount anymore personal interest undermine her accuracy, independence and behaviour. doubt on her contribution and value to her company esp on SBOs

Q4 contd
Competence Sarah should maintain high standards

in providing advice to the Senior Executive. Her acceptance of the benefits will affect her ability to provide quality advice in relation to the Oz Supplies. Her advice will not be of a high standard thus will affect any decision by the Executives on the Oz Supplies. Sarah should not accept the benefits from Oz supplies as it is a breach of the AHRI professional code of ethics.

Q4 Contd
Honesty may affect her honesty in some of the

decisions and advice given as her role as a Senior Executive. In addition, Sarahs acceptance may cause her to mislead her employer on important business decisions and advice regarding the Oz Supplies.

References
Stone, Raymond J, 3rd Edition, 2007 2. Wikipedia, Definitions, 2012
1.
3.

http://www.ahri.com.au/MMSDocuments/membership/ resources/governance/byinlaw1_codeof%20ethics_professionalconduct.pdf