MGT 321 Chapter 1 Assignment

Which of the following quotes from the case most clearly depicts unethical and fraudulent behavior?

"The testing that supposedly certified the efficacy of the company's product, has since been discredited, and it is now known that some of the demonstrations of prototypes of the company's products were rigged."

Baseball officials failed to notice they'd created conditions that encouraged steroid use. Root out conflicts of interest. Simply being aware of them doesn't necessarily reduce their negative effect on decision making.

Motivated Blindness

The only other individual within the company besides Elizabeth Holmes who knew about the fraud behind Theranos was

Ramesh Balwani, president and COO.

What government entity has charged Theranos with fraud?

U.S. Securities and Exchange Commission (SEC)

You ask Alonzo to consider whether he would still be comfortable breaking company policy by signing Christine's name if he knew that his actions were going to be publicized on the local news.

challenge the rationale

You recommend to Christine that, instead of asking subordinates to sign her name in her absence, she might consider asking the bank owners to consider a formal policy exception that legally allows loan assistants to sign for loan managers in select circumstances if proper procedures are followed.

suggest solutions - not just complaints

You casually mention to Christine that you overheard her conversation with Alonzo and that, because you are a fairly new employee, you are confused about the bank's policy that prohibits loan assistants from signing for their loan managers and are concerned that her request could cause problems for all of you.

use your lack of seniority or status as an asset.

Hard, Job Specific

Computer Skills 1 Mechanically Inclined 2

Soft, Portable

Interpersonal skills Effective communication Personal attributes Teamwork

Hard, Portable

Mechanically Inclined 1 Computer skills 2

A researcher whose fraudulent clinical trial saves lives is considered more ethical than one whose fraudulent trial leads to deaths. Examine both "good" and "bad" decisions for their ethical implications. Reward solid decision processes, not just good outcomes.

Overvaluing Outcomes

Soft, Job Specific

Social Media

You remind yourself that, although you were not the one asked to provide the signature, it is still your responsibility to take action against potentially unethical behaviors in your workplace.

accept that confronting ethical concerns is part of your job

The invention that Theranos intended to market made which of the following things easier?

blood testing

If someone decides to quit their job as a consultant because they feel that they do not have the skills necessary to complete the job adequately, they quit because of

person factors.

What is the key problem in this minicase?

employee productivity is decreasing

Consultants use a ________ approach when considering solutions to a problem.

contingency

As described in the minicase, which of the following fears is probably not a cause of employees working while on vacation?

fear of not receiving overtime pay

All of the following describe Holmes' approach to managing Theranos except

making decisions via consensus with multiple individuals.

You talk with Alonzo about the company's policy and remind him that although you understand the immediate pressure he feels to comply with Christine's requests, you think he should also consider the long-term ramifications such as the loss of his job or the bank's reputation.

Consider and explain long-term consequences

You research similar incidents and then present data to Christine to help her to see how this action could potentially have financial and legal impacts on Christine, her subordinates, and the bank

Recognize that it's business and treat it that way

Which of the following is an example of a consultant utilizing soft skills?

discussing possible solutions with a client

Auditors may be more likely to accept a client firm's questionable financial statements if infractions have accrued over time. Be alert for even trivial ethical infractions and address them immediately. Investigate whether a change in behavior has occurred.

The Slippery Slope.

The pressure to maximize billable hours in accounting, consulting, and law firms leads to unconscious padding. Brainstorm unintended consequences when devising goals and incentives. Consider alternative goals that may be more important to reward.

Ill-conceived goals

A drug company deflects attention from a price increase by selling rights to another company, which imposes the increases. When handing off or outsourcing work, ask whether the assignment might invite unethical behavior and take ownership of the implications.

Indirect blindness

What would you recommend as a way to solve the problem presented in the case?

Employers should have clear guidelines on the use of technology during after-work hours.