Step 2: Notes on Relevant Information/Underlying Assumptions
• McArthur Place, a $6 million not-for-profit organization in the Chicago area.
• Carolyn and Emily both began at MP in 1993, a friendship grew between them, as well as a sense of trust.
• Kelly Oaks was a supervisor that had a lot of issues with John.
• Problems between Kelly and John had escalated to a point where John was being considered for termination, and Carolyn was in the middle of the controversy.
• Emily new MP had a clear policy about personal use of telephones.
• Carolyn’s son John began working as a driver for MP’s nutrition program.
• Carolyn handed Emily $300 to cover John’s excessive phone bills for the calls to his girlfriend.
• Carolyn wanted to teach her son John a lesson, but didn’t want him to get fired.
• Employees were required to pay for any personal call that cost the organization more than $3.
• Finding that there were excessive calls, Emily would follow up with Carolyn and the supervisor to ensure that the personal calls stop and reimbursement
State 3: Case Problem
Emily Stevens, Controller for McArthur Place, was presented with an ethical dilemma when she was confronted by Carolyn Johnson, Operations Manager, Emily’s friend, and co-worker regarding her son’s cellular phone use. Carolyn admitted she discovered that her son, John, had misused the company cell phone and incurred $300 in personal calls. Carolyn asked Emily to accept a reimbursement from John of $300 and to cover up the calls- to not tell anyone about this. To maintain her relationship with Carolyn while at the same time protect the company as her job requires, she must report the problem immediately to Carrie Fisk, Fiscal Officer, while presenting her with the reimbursement.
Step 4: Objectives for Managers Involved1. To- Review telecommunications policy, termination rules, and modify telecommunications policy to specify usage of the company’s cell phones.
2. To- Hiring a suitable staff member to review all telecommunication reports
3. To- Create strict policy to not hire family members
4. To- Assign another employee to review Carolyn's reports
Step 5: Order of the Critical Issues
1. Family relationship favoritism * Financial budget at risk * Failure to follow MP’s telecommunications policy

Step 6: Relevant Information/Underlying Assumptions * Fact- John failed to commit with MP’s telecommunications policy * Fact- Carolyn tried to cover up John’s mal-usage of the company’s cell phone * Assumption- Emily will agree with Carolyn’s request

Step 7: Possible Solutions
1. First solution.
Emily should meet with Samantha and Carrie to disclose the issue.
Advantages
* Advantage- Promote honest communication within the company * Advantage- Indorse business ethics

Disadvantages * Disadvantage- Friendship between Emily and Carolyn will be harmed * Disadvantage- Possibility of losing a good employee

Possible Outcomes
Best: Eliminate unethical employees
Most Likely: John is fired
Least Likely: Emily, Carolyn, and John get fired

2. Second solution
Emily accepts Carolyn’s request
Advantages
* Advantage- Emily, Carolyn, and John keep their job * Advantage- Friendship between Carolyn and Emily is maintained
Disadvantages
* Disadvantage- unethical business solution * Disadvantage- cover-up gets discovered and everyone involved gets fired
Possible Outcomes
Best: Cover-up goes smooth; nobody finds out
Most Likely: Cover-up gets discovered and leads to dismissal of Emily, Carolyn, and John
Least Likely: Cover-up gets discovered, but nobody gets fired

Step 8: Best Solution
Emily should follow business ethics, by setting up a meeting with both Samantha Green from HR, and Carrie Fisk the Fiscal Officer. She has the evidence to show them how much John went over and explain the situation in which she is in with Carolyn.

Step 9: Implementing the Solution.
McArthur Place should set up new policies to create a better work experience. A new policy that should be created is no family members should be allowed to work at MP. The telecommunication policy should also be modified, and once it is modified, the employees should be notified of the upcoming changes.

Step 10: Communicating the Solution
Once the new policy is modified, it should be reviewed in a staff meeting. This policy should be done within 30 days