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 Ralphs 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. Ralphs sales figures improved, and Jane, who was Ralphs
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; theyve 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 Janes 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 COBAs 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 Janes confrontation with Ralph, he confided in her that he was
still having problems with alcohol but that is wasnt affecting his job performance. "You know, Jane, just
between you and me, Ive been worried that I might be an alcoholic. So I went to a doctor and had a
confidential blood test done. Its 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 Janes 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 COBAs
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 Ralphs 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, COBAs vice president of sales, asking Jane about Ralph.
Jane said tentatively, "Ralph made quota this quarter, but Im worried about next quarter."
"Well, you know Jane," Chuck replied, "Ralph is a good salesman. Hes had a rough time of it, but I think
hell pull out of it. Its not like hes an alcoholic. Anyway, I just wanted to see how my nephew is doing. We
dont 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 COBAs 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 its unusual for me to ask you to share
information about one of your own for a job at the competition, Jane. But its an important position, so Im

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.
"Its one of your salespeople, Ralph," Michelle replied.
Jane knew that if she gave a good report on Ralph, he could hurt EASELs 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 wouldnt be charged with driving while intoxicated. The sergeant
told her that technical problems had invalidated the equipment on Ralphs test, but that didnt 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.