Question

In: Accounting

Between his freshman and sophomore years of college, Jack takes a job as ticket collector at a local movie theatre.

Between his freshman and sophomore years of college, Jack takes a job as ticket collector at a local movie theatre. Moviegoers purchase a ticket from a separate employee outside the theatre and then enter through a single set of doors. Jack takes half their ticket, and they proceed to the movie of their choice.

Besides trying to earn enough money for college the next year, Jack loves to watch movies. One of the perks of working for the movie theatre is that all employees are allowed to watch one free movie per day. However, in the employee handbook it states that friends and family of employees are not allowed to watch free movies. In addition, employees must pay full price for all concession items.

Soon after starting work at the theatre, Jack notices that most other employees regularly bring their friends and family to the movie without purchasing a ticket. When Jack stops them at the door to ask for their ticket, they say, “Jack, no one really follows that policy. Just be cool and let us in. You can do the same.” Jack even notices that upper management does not follow the policy of no family and friends watching free movies. Furthermore, employees commonly bring their own cups to get free soft drinks and their own containers to eat free popcorn.

Jack considers whether he should also start bringing friends and family and enjoying the free popcorn and beverages. He reasons, “Why should I be the only one following the rules? If everyone else is doing it, including upper management, what harm would it be for me to do it too? After all, when you watch a movie you aren’t really stealing anything, and popcorn and drinks cost hardly anything. Plus, I really need to save for college.”

 

Required:

1. Understand the effect: Does allowing free entrance and free concessions violate company policy?

2. Specify the options: Can Jack choose to follow the company’s written policies?

3. Identify the impact: Does upper management’s violation of the policy likely impact other employees?

4. Make a decision: Should Jack follow the company’s policies?

Solutions

Expert Solution

1) Actually allowing free entrance and free concessions to employees does not violate company terms and conditions. But as in the Paragraph, Allowing free entrance and concessions to family and friends of other employees violate company policy.

 

2) Jack has two options in specific: - One is the easy way, Follow the company policy and dont allow friends and family of other employees for free or charge them accordingly. The second way is to Let other employees to violate company policy and if something goes wrong, jack will be fired and has to face other consequences.

 

3) The Violation of rules by upper management will effect the other employees if they are on duty. And if something goes wrong and once an top management employees gets caught for violating the rule it will also lead to the lower level employees. Mostly the company decision will be to terminate the lower level employees and they probably safeguard the top management employees. So the answer is a "Yes”. It will impact other employees.

 

4) As per my opinion if i am standing in jacks position, I will follow the company policy because my future lies on the collage and my studies. For that i need to save money. So, I will follow the rule of company in a Rational and lenient way that ; I will Not Allow free entry for family and friends of my level of employees but i will allow it to the top level management employees after mentioning the rule to the before Giving them a Free entry.


1) Actually allowing free entrance and free concessions to employees does not violate company terms and conditions.

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