Cultural-Norm Ethical Dilemma Analysis
Organizational Cultural-Norm Case Scenarios
(Choose one of the following two case studies below)
1. Billing of Cranes (Collins, 2012)
Five months into the construction of your new building, you stop by the jobs site and count two
cranes, one of which is not being used. When you get back to the office, you review the general
contractor’s construction contract and notice that the original agreement was for one crane. You
review the most recent bills and realize that for the previous two months, you were billed for two
cranes. The cost per crane is $9,600 per month, which amounts to $19,200 for the second crane.
You mention the crane billing to a business associate familiar with the construction industry.
“Oh that’s typical,” she tells you. “A major revenue sources for general contractors in rental
income from their equipment. I heard that this particular general contractor owns more than $50
million worth of equipment. In order to make the payments and generate a return on investment,
the general contractor needs to bill that equipment to as many projects as possible for as long as
possible”.
At the next jobsite meeting, you ask the project manager why there are two cranes instead of the
agreed upon one crane. He says two cranes are required to improve productivity and keep on
schedule for your grand opening. You point out that only one crane is being used; the other crane
just seems to be parked there. “Oh we use both cranes,” he responds, “but sometimes not at the
same time.”
The next day you drive by the jobsite and see that, once again, only one crane is being used. You
mention this to your business associate again. “They’re scamming you” she insists. “The only
way these guys respect you is if you play hardball. On your next bill, only pay for one crane, not
two and if they make a big deal of it, tell them you want be reimbursed $19,200 for the previous
months when you were charge for two cranes even though the contract clearly state only one
crane would be used. I can find you a low-cost construction consultant who will put in writing
that only one crane is needed.”
You realize that if you refuse to pay for the additional crane the general contractor could issue a
work slowdown to prove that two cranes really were needed. The building is scheduled to open
in seven months, and the use of a crane is projected for another three months, which would cost $
28,800 for the extra crane. (p. 216)
2. Exception or Donation?
According to the Institute for Global Ethics (2012) Highland Electricity is well-known for
supporting community projects, and in recent years has increased its corporate giving. The
company has also recently defined its giving strategy, particularly in how it relates to their
business objectives. As part of this overall effort, Highland clarifies its giving guidelines. There
are four broad funding areas (Job training and economic development, Education, Emergency
preparedness, and Environmental stewardship), and grants are ideally awarded to organizations
within the company's service area.
Arts and cultural organizations, which are not included in the four funding areas, have received
few grants in recent years. Numerous arts organizations have been turned down with the
explanation that the company is focusing its resources in its strategic funding areas. Requests
from other organizations are turned down because they are outside the utility's defined service
territory.
Contributions manager Clarissa Watt has recently received two funding requests from high-level
managers within the company. The first is to provide a large (up to $25,000) grant to an arts
center in a small town in the service territory. A chief regulatory official's wife serves on the art
center's board. The second request is for a grant to a nonprofit organization outside the service
territory, but within the district of a very influential state legislator.
Both organizations are deserving of funding, and the activities to be funded are reasonable.
Though no linkage of any kind is asked for, offered, or implied by the regulator or the legislator,
the internal promoters of the grants feel these contributions will provide opportunities for
contact, relationship building, and good will that would serve the company well.
However, both grants are clearly outside the company's guidelines. And making an exception in
either case could prove awkward and raise expectations among other organizations that do not
meet the guidelines. On the other hand, granting funds for these two commendable projects could
help their respective communities and create positive fallout for the company. (Exception or
Donation, paragraph 1-5).
References
Collins, D. (2012). Business Ethics: How to design and manage ethical organizations. Hoboken,
NJ: John Wiley & Sons Inc.
Institute for Global Ethics (2012). Exception or Donation. Retrieved from
http://www.globalethics.org/dilemmas/Exception-or-Donation/21/