What Would You Do?
Chapter 1 The Importance of Business Ethics
Jane paused, told Michelle she had another urgent call, and put her on hold. What was she going to tell
her friend Michelle about Ralph. "Why do these things happen to me?" she muttered to herself.
Jane had been a regional sales manager at COBA for almost two years. One of the problems that came
with the position was Ralph. Ralph had been with the company for ten years and was a good performer.
He always met his quotas and goals and was a team player in every respect. Two years ago, however,
Ralph went through a period of depression that severely affected his sales figures as well as his client
relationships. Another problem resulting from Ralph’s depression was alcohol dependence. When the
problem came to light, COBA had given Ralph the option of either entering a private drug rehabilitation
center or being dismissed. Ralph chose the six-week detoxification program.
For about six months all seemed to be go well. Ralph’s sales figures improved, and Jane, who was
Ralph’s boss, had not received any more customer complaints about him. However, when it became
apparent that Ralph was drinking again, Jane confronted him. Ralph justified his behavior by telling her
that he had to have a few drinks with his clients to keep them happy. "After all, Jane, everyone knows that
drinking is something a salesperson does to develop a more personal relationship with the client," he
argued. "Besides, my sales figures have not decreased; they’ve increased." Nevertheless, Jane cautioned
Ralph about his behavior.
Several months before Ralph had resumed drinking, a confidential report from the detoxification center
had landed on Jane’s desk. The report discussed a new test that could determine whether alcohol
abusers were genetically different from others. The center requested a voluntary blood test from all clients
who had gone through the treatment program in the last year, including Ralph.
At about the same time, Jane had received another memo from COBA’s insurance carrier. Certain
employee illnesses were to be classified industrywide as nonqualifiable if diagnosed prior to employment.
In other words, a new employee with a preexisting condition named on the list would not be eligible for
reimbursement for treatment of that illness. One of the conditions listed was alcoholism, as defined by the
new blood test. Jane worried about her personal liability if she were to persuade Ralph to take the blood
test, so she said nothing to him.
At a regional sales meeting six weeks after Jane’s confrontation with Ralph, he confided in her that he was
still having problems with alcohol but that is wasn’t affecting his job performance. "You know, Jane, just
between you and me, I’ve been worried that I might be an alcoholic. So I went to a doctor and had a
confidential blood test done. It’s a new test that determines whether you really are an alcoholic. Well, it
came up positive, so now I know I have to quit. I just wanted to let you know that I appreciate the second
chance. Thanks, Jane."
Within a week, another memo from headquarters came across Jane’s desk concerning impending
litigation against a sales manager. It seems that an ex-employee was suing COBA and the manager
because she felt she was fired because of alcoholism. The memo stated that it wanted all regional
managers to hear COBA’s side of the litigation before questions were asked.
When the quarterly sales reports came in, Ralph had made his quotas. However, Jane had started to get
some negative phone calls about the servicing of some of Ralph’s accounts. She believed there was a
strong probability that alcohol was affecting his work. That same day, Jane got three phone calls. One was
from Chuck, COBA’s vice president of sales, asking Jane about Ralph.
Jane said tentatively, "Ralph made quota this quarter, but I’m worried about next quarter."
"Well, you know Jane," Chuck replied, "Ralph is a good salesman. He’s had a rough time of it, but I think
he’ll pull out of it. It’s not like he’s an alcoholic. Anyway, I just wanted to see how my nephew is doing. We
don’t want to lose a good man like Ralph, do we? Got to go. Bye."
The next call Jane got was from Michelle, a vice president at EASEL Corporation. Michelle and Jane had
worked together at another company and were good friends. EASEL, however, was COBA’s main
competitor and had been gaining market share on them for the last year. Michelle was calling to check out
a salesman she was considering for a regional position. "I know it’s unusual for me to ask you to share
information about one of your own for a job at the competition, Jane. But it’s an important position, so I’m
cashing in one of the favors you owe me. I need to know about this guy."
"Well, you know you can count on me, Michelle. Who is it?" asked Jane.
"It’s one of your salespeople, Ralph," Michelle replied.
Jane knew that if she gave a good report on Ralph, he could hurt EASEL’s sales and counter its sales
strategy and might also damage her friendship with Michelle.
The third phone call was from the police. The sergeant told Jane that Ralph had just been picked up, and
if she came down to the station to get him, he wouldn’t be charged with driving while intoxicated. The
sergeant told her that technical problems had invalidated the equipment on Ralph’s test, but that didn’t
change the reality of his condition. The sergeant was calling Jane as a courtesy because they were
friends from high school.
1. What are the ethical Issues?
2. Discuss options for Jane and Ralph.
3. Discuss any extra information Jane and Ralph need to make their decision.