The case known as Phantom Expenses brings up various ethical concerns, including widespread employee dishonesty within an appliance manufacturing company. However, it is crucial to first address a potential unnoticed ethical problem for which management may be held responsible. The case illustrates that the unchecked practice of inflating reimbursable expenses could lead one honest employee to expose fraud across the entire company. Eventually, management is likely to discover their employees' dishonesty and confront the true ethical issue at hand. They will need to acknowledge that their compensation methods have encouraged deceitful behavior among employees. While some employees engage in dishonesty, it would be unfair to assume that all members of the East Coast sales force should be fired by the company. Management faces the challenge of reprimanding their sales force while recognizing their own flawed policies and must navigate carefully to avoid b
...eing perceived negatively. Furthermore, employees who uphold higher ethical standards often face peer pressure in the workplace. For instance, if Jane chooses to maintain moral principles, her colleagues may ostracize her; however, if she succumbs to pressure, she will experience guilt and potential repercussions in the future if someone blows a whistle on unethical practices. Honesty is not just important but essential; truthfulness requires a self-centered approach.
Therefore, Jane should complete her expenses in the same manner as other salespeople but confidentially notify management about the widespread dishonesty among employees. Management will appreciate her honesty and understand the pressures that led to her temporary deceitfulness. The ethical issues involved in this case include whether peer pressure permits dishonesty, if improper reimbursement by management encourages employees to inflate their expenses, and how senior management disciplines
itself while condemning employees. Taking all factors into consideration, it would be commendable for Jane to confidentially inform management about the widespread dishonesty among employees. Additionally, management will comprehend the pressures that resulted in her temporary deceitfulness. If Jane had accurately reported her expenses, it remains unknown what consequences would have occurred for both herself and the company. However, if she had followed Ann's suggestion and inflated her expense account, it would have exposed misconduct within the entire east coast sales force by blowing the whistle on them. If the entire sales force were terminated, it is improbable that management would bear responsibility. Nevertheless, if Jane succumbs to pressure, she will encounter a hostile environment and grapple with guilt and potential repercussions should someone reveal the truth. In this scenario, honesty is not only the best policy but also the sole ethical principle that must be upheld.The importance of placing truthfulness above all else, even if it means focusing on oneself.
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