Question

Discussion: Ken, a salaried employee, was terminated from his company in April of this year. Business had been slow since the beginning of the year, and each of the operating plants had laid off workers. Ken’s dismissal was processed through the Human Resources Department, but the information was not relayed to the corporate payroll office. As had been the policy, checks for workers at remote sites were mailed to the employees. The mailing of Ken’s checks continued for the next four weekly paydays. It wasn’t until the monthly payroll reports were sent to Ken’s supervisor that the error was detected.

1. Ken refused to return the four extra checks?

2. What actions should the company take?

3. Is Ken being ethical?

Answer 1

Answer :

Summary of Case

Here in the case Ken, a salaried employee, was terminated from his company. And ken's dismissal was processed through the Human Resources Department, but the information was not sent to the Corporate Payroll Office. According to company's policy, checks for workers were mailed to the employees. The mailing of Ken's checks continued for the next four weekly paydays after dismissal. Ken refused to return the four extra checks.

Actions of Company :

(1) The information of that error should be given immediately to the Human Resources Department and Payroll office so that they can stop sending checks to Ken.

(2) There should be some selection of internal control investigationsin the company to see how this error occurred and what should be done to keep it from happening again.

(3) The extra checks received by Ken should be return to company by him. Its a responsibility of Ken. But Since he refuses to return the checks , so company should take legal action against him.

yes, The Management of enron especially ken lay engaged in some ethical issues like money laundering, securities fraud, wire fraud, conspirancy, etc.,