Empress Luxury Lines
Angela D. Davis
Dr. Prakash Menon
April 29, 2012
This critical analysis case of Empress Luxury Lines is based on circumstances of ethical dilemmas and challenges of top level managers and their employees faced with decisions on what anyone person or persons would do against making ethical decisions. In this case study, we note that the employee has to make choices for doing what he believes is right for him even though it may cause possible termination. Despite of the needed computer upgrade for the Empress Luxury Liner for Empress, top management issues was to find other ways to limit cost. The luxury liner had fallen on hard times due to numerous factors some of which was not controllable by this business. In this case analysis we will explore how right or wrong decision making can create ethical dilemmas for a business. Faced with such dilemmas, we will try to understand how in decision making for the employees, managers, CFO’s affects the business entity.
Empress Luxury Lines
ANALAYZE ANTONIO’S ETHICAL DILEMMA
Antonio Melendez, a two year employee of Empress Luxury Lines was starting to feel as stated by Daft, “finally found a way to fund the computer system upgrade he’d been requesting ever since he’d taken the job two years ago” ( 2010, p. 150). Antonio, being that he was only on the job two years, and Kevin Pfeiffer, the new hire, the ethical decision dilemma for them was in facing the truth about the power surge damaged that struck the ship to its onboard computer system. Antonio knew that the risk in defrauding the insurance company of the true nature of what happened to the computer system onboard the ship could have dire consequences for him and Kevin. Kevin told the truth to his supervisor Phil Bailey, of the $15,000 computer damaged and was told to report back only to his boss Phil Bailey. Kevin did exactly what he believed would be great news of the minimum fixable damage, but Phil was not happy. Instead, Kevin was instructed to remove and destroy all the wires and the cables and haul them elsewhere so that the insurance adjuster upon arrival would not know the difference in the damage. Kevin refused choosing to make the intelligent ethical decision to not due as instructed and to not become part of a fraud scheme or the culture of top management habitually submitting fraudulent claims. Antonio appreciated Kevin’s integrity of making the best decision to not do as he was asked to do for Empress and his boss Phil Bailey. Antonio knew of years before he was hired, Empress Luxury Lines in the 1990’s, were a healthy business. The cruise liner had unprecedented demand by consumers to sail on its luxury liner. Unfortunately, with external threats of unforeseen causes, such as the 9/11 attacks in the U.S., the Hurricanes of 2005, and the Norwalk Virus outbreak, Empress’s volume of tourist booking travel by ship fell off drastically. Empress had to refund monies to its clients for cruises they could not use due to these uncertainties. In essence, contingency planning was enacted to respond to the unexpected conditions of weather, terrorism, and medical emergencies. The current rising demand of fuel cost to sail the cruse liner, slashed into the luxury liner’s profits. This is why Antonio could not or did not see his fervent request to have monies to upgrade the ships computer system was not accepted. Until the damage of the computer system was verbally reported to Bailey, then the accepted practices of Empress by top management of fraud which was readily the condone nature, the assurance of Kevin, or Antonio being protected under the Whistle-blower act was essentially an ignored, systemic practice and rooted in the business climate culture from top to bottom. CREATE AND DESCRIBE TWO STRATEGIES
In this case analysis the strategies to...
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