Reference no: EM133181644
Ethics Dilemma: Request Approved, then Denied
Jennifer Smith is an operations manager at Get It to You, which is based in Cleveland, Ohio. The company provides same-day letter and package delivery service within metropolitan areas throughout the United States. Get It to You is expanding operations to metropolitan areas in several countries, starting with Caracas, Venezuela. Jennifer reluctantly agreed to take the three-year expatriate assignment after several operations managers refused it.
About six months before departure, Steven Brown, director of Human Resources, discussed the terms of the assignment, including Jennifer's new salary, housing allowance, food allowance, annual cost-of-living adjustment, and relocation bonus. Jennifer expressed concern that the allowances were too low given the exorbitant cost of living in Caracas, and she expressed that the modest bonus was misaligned with the personal sacrifices she would make. She went on to propose substantially higher amounts and indicated that she would refuse the assignment if her request was denied. Steven indicated that her terms exceeded policy limits, but he would seek written authorization from the company's CEO, Juanita Jimeno.
As promised, Steven spoke with Juanita to seek approval; however, she was angered by Jennifer's demands and was inclined to deny them. At the same time, the board of directors was pressuring Juanita to launch global operations. The launch was already several months behind schedule. As a result, Juanita reluctantly agreed to Jennifer's terms. Steven requested written confirmation, which he did not receive following several attempts. In the meantime, Jennifer moved to Caracas to begin her assignment after Steven assured her that everything was set. Eventually, Juanita refused to provide written authorization after the board of directors instructed her to institute cost savings measures. Get It to You profits were expected to fall well below the forecasted level. Nevertheless, Steven made one more appeal. This time, Juanita expressed concern that she would lose her job if she granted the request.
- As a compensation professional, what would you do?
- What factor(s) in this ethical dilemma might influence a person to make a less-than-ethical decision?