Mag Rec Inc.

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Case Study: MagRec Inc.

1. Place yourself in the role of the manager. What should you do now? After considering what happened, would you change any of your behaviors?

If I were the manager in the situation that she is currently in I would apologize to Dinah. I would apologize because: 1) Dinah was honest and reported the file when she could have disposed or disregarded the file, 2) Dinah could have taken the file directly to Partco without MagRec's knowledge and completely undermined MagRec's relationship with Partco, and 3) By choosing not to push an obvious ethical issue, Pat created a distrust between herself and Dinah. Dinah will now question Pat's professional ethics and integrity from that point forward. Trust and communication will be in jeopardy at this point and Pat will need to take steps in order to gain that back from Dinah.

In my opinion, Pat should have pressed forward with the information she was given to Mr. Leed. Hopefully, Mr. Leed would have made an ethical choice and informed Partco of the issue. Mr. Leed then may be able to negotiate a more favorable discount as opposed to what they were forced to give Partco. Even though it was a bad situation, not being straight forward with Partco initially probably ended up costing MagRec more in the long run.

2. Do you think Dinah was right? Why or why not? If you were she, and you had to do it all over again, would you do anything differently? If so, what and why?

I do think Dinah was right. Dinah brought Pat the file knowing that there was an ethical and legal violation with what MagRec was doing. One would assume that Dinah is acting properly by showing her supervisor the file and reporting this through her chain of command. If I were Dinah, the only thing differently I would have done was take the file to Mr. Leed once I discovered that it was not reported to him. This way MagRec Management still has the opportunity to address it and try to resolve what had happened before Partco was...
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