Discussions: Ethical decision-making 5pts. (Due by 11:59pm)
Please review textbook CH 7 “You Decide” section on page 199. Share your opinions regarding the questions in the end of article. The other questions to help your discussion: Which behavior(s) do you consider to be unethical? Why? What impact do you think Nancy’s actions will have on future decision-making at the Forest Park Hotel? Should Nancy have included Rich in the decision-making process? Does the Forest Park Hotel own its trash?
Three hundred (300) words are the minimum of your content.
“It just doesn’t make any sense, Nancy. We’ve been underbid on four of our
last five convention proposals. Worse yet, each time we’ve been underbid,
it’s been by the City Center Hotel, and they’ve beat us out by almost 5% on
the total value of the contract.
I want some answers before we submit another bid. It seems to me that we
are either totally out of touch with the realities of our marketplace or there are
some serious operational problems in your office.”
As a downtown hotel that targeted business travelers and convention
business, the Forest Park Hotel had traditionally been very successful in
following up and capturing its fair share of leads that were developed by the
local convention and visitors bureau. Because of these past successes, Rich
Edwards, general manager of the hotel, was particularly disturbed by the
failure of Nancy Peak, director of sales, in securing some key convention
groups for the hotel.
A heated meeting with Rich was always an uncomfortable situation, but
Nancy was particularly troubled by this encounter because she had no
immediate answers. After an early-morning conference with her sales staff,
she was confident they could find the cause of the bidding failures.
Less than two weeks had passed when Harvey Zoller sheepishly walked into
Nancy’s office. He said that he felt he may have found the source of the
bidding problem. He had been tossing draft copies of his estimates and
proposals into the trash. Somehow, these papers must have been finding their
way into the hands of the City Center Hotel employees, because there were
suspicious parallels between the contract proposals he had developed and the
final bid proposals submitted by the City Center Hotel.
After a thorough investigation, Nancy concluded that although disposal
procedures were normal, they were inadequate in this situation. Further
investigation confirmed that the night custodians working for a contract-
cleaning firm had been taking discarded worksheets and proposals from the
office wastebaskets. Nancy reported her finding to Rich and assured him that
adequate control procedures had been implemented to prevent future
However, Nancy failed to tell Rich that she had instructed Harvey to create
fictitious worksheets and proposals to be discarded on a current bid proposal.
A few weeks later, Nancy was informed that Forest Park Hotel’s bid had
been accepted and it would serve as the host hotel. She felt that it was poetic
justice that the bid proposal submitted by the City Center Hotel had been 5%
less than the fictitious work discarded by Harvey but 2% over the actual bid
she had submitted. Did Nancy make the right decision?
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