Free The Gift Card Swap: Speak Up or Let It Lie? Case Study Solution | Assignment Help

MBA Staff Writer
Written by Gary F. Smith
Publish Date: 2024-12-03

Harvard Case - The Gift Card Swap: Speak Up or Let It Lie?

"The Gift Card Swap: Speak Up or Let It Lie?" Harvard business case study is written by David G. Fubini, William Fubini, Patrick Sanguineti. It deals with the challenges in the field of Organizational Behavior. The case study is 2 page(s) long and it was first published on : Aug 2, 2023

At Fern Fort University, we recommend that Sarah, the new employee, speak up about the gift card swap incident. While this may seem daunting, remaining silent could have detrimental consequences for both Sarah and the company. By addressing the issue, Sarah can contribute to a more ethical and transparent work environment, while also demonstrating her commitment to upholding company values.

2. Background

This case study revolves around Sarah, a recent graduate hired as a marketing assistant at a large, established company. She witnesses a senior executive, Michael, engaging in a questionable practice: swapping gift cards intended for clients for personal use. This situation presents Sarah with a moral dilemma: should she report the incident, potentially jeopardizing her position and facing retaliation, or remain silent and risk complicity in unethical behavior'

The main protagonists are Sarah, the new employee facing an ethical dilemma, and Michael, the senior executive engaging in unethical behavior. The case highlights the tension between individual integrity and organizational loyalty, especially for new employees navigating the complexities of corporate culture.

3. Analysis of the Case Study

This case study can be analyzed through the lens of organizational behavior, specifically focusing on organizational culture, leadership styles, and ethical behavior.

  • Organizational Culture: The case suggests a culture where unethical practices might be tolerated, as evidenced by Michael's actions and the lack of immediate consequences. This highlights the importance of a strong ethical foundation within an organization, where values are clearly communicated and upheld.
  • Leadership Styles: Michael's actions demonstrate a lack of ethical leadership, potentially stemming from a transactional leadership style focused on personal gain rather than ethical conduct. This underscores the need for leaders who embody ethical values and inspire ethical behavior in their teams.
  • Ethical Behavior: Sarah's dilemma highlights the importance of personal ethics in the workplace. Her decision will reflect her commitment to ethical principles and her understanding of the potential consequences of remaining silent.

4. Recommendations

  1. Speak Up: Sarah should confront Michael directly, expressing her concerns about the gift card swap and its potential impact on the company's reputation. This conversation should be conducted in a professional and respectful manner, focusing on the ethical implications of the action.
  2. Seek Guidance: Sarah should seek advice from a trusted colleague or mentor within the organization. This could be a senior manager or HR representative who can provide guidance on navigating the situation and offer support.
  3. Document the Incident: Sarah should document the incident, including dates, times, and any relevant details. This documentation can serve as evidence if further action is required.
  4. Consider Reporting: If Sarah's concerns are not addressed through direct communication with Michael, she should consider reporting the incident to a higher authority, such as HR or the company's ethics hotline.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core Competencies and Consistency with Mission: By speaking up, Sarah demonstrates her commitment to ethical conduct, a core competency for any organization. This aligns with the company's mission, which likely emphasizes integrity and ethical business practices.
  2. External Customers and Internal Clients: The gift card swap directly impacts external customers, potentially damaging the company's reputation and trust. Addressing this issue protects both internal and external stakeholders.
  3. Competitors: In a competitive market, ethical behavior can be a significant differentiator. By upholding ethical standards, the company can gain a competitive advantage and attract talent.
  4. Attractiveness - Quantitative Measures: While quantifying the impact of ethical behavior can be challenging, the potential damage to the company's reputation and financial losses due to legal action or customer dissatisfaction can be substantial.

6. Conclusion

Sarah's decision to speak up about the gift card swap demonstrates her commitment to ethical behavior and her understanding of the importance of a strong organizational culture. By addressing the issue, Sarah contributes to a more ethical and transparent work environment, setting a positive example for other employees and promoting a culture of accountability.

7. Discussion

Other alternatives include:

  • Remaining silent: This would allow the unethical behavior to continue, potentially damaging the company's reputation and creating a culture of silence.
  • Confronting Michael privately: This could be effective if Michael is receptive to feedback, but it risks retaliation or a lack of action.
  • Seeking advice from a trusted friend outside the company: This could provide valuable perspective but may not be the most effective approach for addressing the issue within the organization.

The key assumption is that Sarah's concerns will be taken seriously by the organization and that she will not face retaliation for speaking up. However, there is a risk of retaliation, which could negatively impact Sarah's career.

8. Next Steps

  1. Immediate Action: Sarah should speak with Michael within the next week, expressing her concerns and seeking clarification.
  2. Seek Guidance: Sarah should consult with a trusted colleague or HR representative within the next two weeks.
  3. Document the Incident: Sarah should document the incident and any subsequent conversations within the next week.
  4. Consider Reporting: If the issue is not addressed through direct communication, Sarah should consider reporting the incident to HR within the next month.

By taking these steps, Sarah can proactively address the ethical dilemma and contribute to a more ethical and transparent work environment.

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Case Description

In this short vignette on ethics in consulting, Brenda Thompson, a new Associate at a prestigious consulting firm, learns that a fellow Associate is using the firm's meal expense benefits to pocket the difference between the maximum daily allowance and his actual amounts spent in the form of prepaid gift cards. Though this practice was not explicitly said to violate the policy, Brenda feels uneasy about the situation and must decide how to act on her ethical sensibilities.

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