Ethics
A CEO of a software company meets problems to pay his employees. Indeed every fast growing business, no matter how successful, struggles with cash flow problems. However, the firm has received a check for $94,000 for a provision which it cannot make. But this amount of cash allows for the CEO paying all employees and expecting they leave the company which would be disastrous for it.
Cashing the check without saying at the client the impossibility to achieve the provision would be at the limit of legality.
On the other hand, if the CEO does not cash the check, the company would meet financial difficulties, and some people would be not pay for their work.
The question that meets the CEO is: “Should the company give priority to its interests or should it be honest toward its client even if the situation for the firm would be dangerous?
So in this context, some parts will be wrung and the CEO must take a decision.
Stakeholder groups identified :
← The customer who has looking for a customized version of the company's Software and who are given the check.
← The CEO of the company who has taken the check knowing that her company couldn’t deliver the product.
← The employees who risk to go out or make a mass exodus if the company didn't get their money on time
← The Direction team :
- chief financial officer : concerned about cash flow, wanted to cash the check
- The vice-president of sales whose compensation was tied to revenues, wanted to cash the check. - The vice-president of client services thought it was a bad idea to alienate a big customer.
← Suppliers: the CEO and his key managers aggressively went after every receivable and slowed down every payable.
← Others customers who owed his company money. CEO asks them to pay their credit.
Problem: For each person according his function; act in his owns interest and not in the interest of the company.
Identification of