Question

a. Discuss whether Mr. Bell’s violation of corporate ethics policy affects or reflects the control environment of the company.

b. Since the violation is personal in nature, should Mr. Bell have been forced to resign?

c. Should Mountain State have hired him to teach business strategy courses?

 

Answer 1

a.

Yes, Mr. Bell’s actions affect the control environment of Missouri Motor Company. As its CEO, Mr. Bell has primary responsibility for setting the tone at the top and living by the code of ethics. If others in the organization are aware of this violation, it sends the message that the code of ethics is not important. This is likely to lead to other problems, including fraud.

b.

Since the code of ethics specifically prohibits personal relationships between managers and members of their management chain, then Mr. Bell should be held accountable for his actions. Even though it could be argued that the relationship did not affect his ability to perform his job effectively, the company must have thought otherwise when it established its code of ethics.

c.

Some students may agree that someone who violated a company ethics policy should not be teaching students about the proper management of organizations. Others may agree that faculty members are not questioned about their personal lives and that Mr. Bell’s wealth of experience is beneficial to students.

Others may agree that faculty members are not questioned about their personal lives and that Mr. Bell’s wealth of experience is beneficial to students.