RUNNING HEADER: BBDE HEALTH CENTER

1). While reviewing this case there are several decisions and actions made by individuals that could be
called questionable. Starting with the CEO Rulans actions and decisions, the spending of $6140.50 on a
trip to Europe and charging airline tickets over there current worth seem questionable. The purpose
seemed acceptable to travel for a conference but bringing his wife and traveling abroad is excessive to
be paid for by the company. I view these as questionable as a lot of the organization is paid for by
grants and state funding. If the donors knew how the funding was being used by Rulan there decision to
give may be altered. The white water rafting trips intended for the troubled youth, but rather used by
Rulans kids for a possible vacation also seems like abuse of the companies resources. Rulans treatment
and degrading of employees is harmful for the organization and culture. Don also participates in some
questionable actions; the first is getting involved in the disbursement of the airline tickets. Don has no
direct authority over the cash payments, however I can see how this would be concerning to him as a
controller. I also view Dons conversation with Dave as questionable; the topics they were discussing are
not to be discussed outside of work. Don got to thinking about Rulans actions with the horse camp and
rafting trips even though they are just rumors and hearsay. I believe there is a time and place to discuss
issues like that; the sidewalk outside of work seems sketchy. Don and his assumptions may cause bigger
issues down the road. The board of directors also has some questionable actions, approving the excess
spending for Rulan and his wife to travel prior to the work conference is very shady. Dave Brookss
actions are also questionable, as a board member you are trusted to remain confidential with the issues
you discuss. Overall there are lots of questionable acts within this case; ultimately the foundation could
suffer from others behaviors.
2) Looking at who is being affected good or bad starting with the CEO. Rulan is the one is benefiting the
most with the abuse of company resources and finances. Rulan is turning company conferences and
events into family trips and excursions. Rulan could also be effected the most based on the actions the
board or funding sources could make, possible termination. Don may be in the hardest spot, he is a new
employee who knows some questionable activities are going on. He can either blow the whistle to the
board directors, even though they approved the trips or confirm to the status quo. However Don is
assuming a lot of information that may not be 100% credible. Don could also report the actions to the
funding sources. Don is affected both good and bad, he may be risking his job or could keep quiet and
continue to wonder. The board members could blow the whistle about the camps and trips based on
speculation or try to gain more information about the actions of Rulan. The board members may also be
affected if the funders are made of aware of the questionable actions. The employees may be affected
if the organization is shut down based when the donors are made aware of the situation. These
employees are also being abused by Rulan by the way he handles company situations and management
style. The funding sources are being affected in a bad way as the funds they are donating are being
abused.
3) The CEO could start by fixing his management style and the way he handles important situations
leading to better morale and improved overall strategy. Rulan could also stop the way he abuses the
companys resources and explain the intentions of the camps and programs. By correcting the expense
habits and clearing up intentions of the camps, he would be viewed as a better leader and not shady.
However family is may suffer by his actions. Don can either keep his mouth shut, which would be very

hard to do as he already is frustrated. Don could speak to the board members about his concerns, which
could go either way since the board approved the expenses. Don could speak to his boss Randy and
allow him to take the next step, if he decided to jump the chain of command his job may be in jeopardy.
Don could also speak with the funding sources about his thoughts, which would most likely result in him
losing his job. The board of directors could speak to Rulan about his actions and there speculations
about his use of the companies resources. The board would need to decide if his actions are ground for
dismissal before the funding sources cut ties.
4) I think Rulan should change his actions on how he handles company issues, I also believe Rulan should
change the way he abuses the financial resources. However with that being said Rulan has been with
the company for 20 years and him changing his actions are not likely. Don is in a tricky position, he
should report these issues to the funding sources, however he should also report to his boss and board
before he takes those actions. I believe that Don is going to do all of those actions; I think he will blow
the whistle on the issues, resulting in Rulan being terminated. The board of directors should investigate
into Rulans actions and handle them before the entire organization is affected. I think the board of
directors will continue to operate as normal; they approved the company trip and funding so they are
aware of the financial abuse. Unless they are not aware of the family trip and non-work related
expenses, the board should then take action on Rulan.
5) I believe that all principles could apply to this case; however I believe that Integrity is the biggest
principle that is being abused. Don can take guidance in knowing that each member should be acting
with integrity and not act in anyway or activity that may discredit the profession. As I mentioned early
Don needs to follow the chain of command when reporting these ethical issues. The guideline states to
report the issue to your direct management, if the issue is not resolved then address the issue to the
next level of authority. In Rons position he should speak to Randy and then board of directors and if no
resolution the funding sources as the last point of action (IMA, 2013).